The European Commission has proposed the introduction of a European Account Preservation Order to assist the one million businesses in recovering their cross border debts within the EU.
The idea is that there should be a central register which creditors can search in any EU country to establish if the debtor has a bank account in a particular EU Member State. Creditors will also be able to request a 'competent authority' reveal a debtor's bank details - and release attached money.
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Justice Secretary Kenneth Clarke recently announced proposals to change the maximum limit for claims that go through the small claims court from £5,000 to £15,000.
This is part of a wide review which will include proposals to ensure that the court is able to tackle those debtors who won't pay their debts, whilst ensuring that those who can't pay are protected.
He is also proposing a number of ways to tighten enforcement techniques – for example making it more difficult for debtors to stop money from being frozen by putting it in different accounts.
You can view and take part in the consultation on county court reform on the Ministry of Justice Website. |
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Companies across Europe have written off €300bn (£261bn) in the last year due to late payments, according to a survey.
The survey also found that the value of written off debt across Europe had risen by €30bn in the last 12 months, while 2.6% of all transactions were written off in the last year compared to 2.4% the previous year.
Just 10% of businesses believed conditions would improve in the next 12 months, and 52% of respondents said they were not confident of support from banks after the recession.
The survey found that in the UK, the number of invoices being paid on time declined by 5% in the last 12 months, though the percentage of written off debt remained at 2.4%. This had a direct impact on 54% of respondents, who reported reduced liquidity as a result of late payments, while 41% were not confident of being able to secure funding or support from the banks. The majority of UK respondents believed the risk of late payment would remain unchanged in the coming year.
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| Taxman Calls In Debt Collectors |
The taxman is to use debt collection agencies to chase late payers in a move that accountants branded as “dangerous”.
HM Revenue & Customs (HMRC) will write to selected businesses and individuals this week telling them that a debt collection agency will be appointed unless they settle their bill.
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| A million Britons will be technically insolvent by the end of the year, according to a study that threatens to reveal the true state of the nation’s household finances.
More than 700,000 cash-strapped customers have been declared technically insolvent by their banks without showing up on any government statistics, the figures reveal.
The thousands of “hidden debtors” have been signed up to a debt-management plan with their lenders, rather than forced into formal insolvency proceedings.
For the full story, click here |
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Companies are “going legal” 39 days sooner than a year ago on unpaid invoices.
The findings suggest that in the current economic downturn, businesses are only too mindful of the impact of late payments on cash flow and are acting quickly to reduce their exposure to bad debt. Analysis on the Letters Before Action (LBAs) issued in February 2009 against the same month in 2008 revealed a 39-day acceleration in clients going legal. LBAs are used to secure payment, or to obtain a response from a customer before the commencement of a claim. The analysis also revealed that claims after LBAs are being issued nine days sooner Q1 2009 compared to Q1 2008.
Click here for details of the Credit Collections (UK) Ltd Letter Before Action service. |
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| Credit Collections (UK) Ltd has teamed up with Banner Jones Solicitors who will provide expert legal services to Credit Collections (UK) Ltd. Click here to visit the Banner Jones Website. |
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| Debt Collection In Ireland |
| For an explanation of how the debt collection process works in Ireland, click here. |
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The number of people suffering from serious debt problems is much higher than official figures suggest, a survey has found.
About 600,000 people have entered debt-management plans (DMPs), according to a survey by R3, the insolvency practitioners body. These debt plans, which are separate from bankruptcies and individual voluntary arrangements (IVAs), do not show up in official insolvency statistics.
About 80,000 people entered an IVA or became bankrupt in England and Wales in the first half of this year, according to official figures.
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| Repossession Orders Up 24% |
The number of homeowners in England and Wales facing repossession after falling behind on their mortgages has risen.
The Ministry of Justice said 28,658 orders were made by the courts in England and Wales in the second quarter of 2008.
That was up 24% on the same period in 2007 and 4% higher than the first quarter of 2008.
Click here for the full story. |
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| There were 3,210 liquidations in England & Wales during the first quarter of 2008. This represents an increase of 2% on the final quarter of 2007 & an increase of 4% for the same period last year. Of the 3,210 liquidations 2,125 were creditors voluntary liquidations, which represents a 25.4% increase on the same period last year.
To see the figures in detail, click here |
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Credit Collections (UK) Ltd has improved the effiency of it's service still further by developing it's Website to take online debit & credit card payments. Debtors now have a further payment option to encourage satisfaction of balances outstanding. The process of receiving payments is therefore now even more efficient thus improving our Clients cashflow still further. The system was developed by P2 Technologies & you can see the P2 press release by clicking here |
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