|
|
Debt Collection News
| Consumer Debt Passes £60 Billion |
Consumer debt passed to Debt Collection Agencies or sold to Debt Buyers has officially passed the £60 billion figure for the first time, according to the latest quarterly statistics from the Credit Services Association.
As of the end of June 2012 the total value of unpaid consumer debt held by Credit Services Association members for collection stood at £61.4 billion, comprising £33.2 billion placed by creditors with Debt Collection Agencies to collect, and a further £28.2 billion of purchased debt owned by Debt Buyers.
This represents a significant year on year increase of 18% or £9.5 billion and an increase of 5% or £3 billion. While the gross totals have increased, so too have the individual balances. The average individual account balance rose to £1,189.00, the highest value ever recorded by the Credit Services Association. It follows almost precisely a US trend recently reported by the Federal Reserve Bank of New York.
The values of consumer debts actually collected have similarly risen. The total consumer debts collected stood at £472.4 million, a year-on-year increase of 23% or £88 million. |
|
Get Paid! Which is a new guide for small businesses which contains tips and advice from both suppliers and customers, has been published by the Association of Chartered Certified Accountants (ACCA). It contains valuable lessons from small businesses such as advice on invoicing and developing a well-defined credit policy.
Business and Enterprise Minister Mark Prisk said:
“It is hugely important that all businesses, particularly small firms, establish clear payment terms to ensure they get paid on time and successfully manage their cashflow.
“There is practical information available for businesses on getting paid that we are promoting to small firms through our Finance Fitness campaign, and this new guide published by the ACCA contains clear, helpful advice. I want small businesses to use this information and set up appropriate payment terms."
|
|
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. |
|
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. |
|
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.
Get help with your debt recovery |
|
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. |
|
| 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. |
|
| 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. |
|
| 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 |
|
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 |
|
| 1
Sheffield Road, Dronfield, Derbyshire S18 2DH |
Telephone:
01246 411931 Fax: 01246 290130 |
|
|