To the dock for debt
Consumers are angry that creditors are opting to take them to court over outstanding debt rather than reaching a negotiable payment plan.
County Court Judgements have reached their peak as creditors cut corners and refer cases to court rather than comply with industry standards and try to resolve matters with their debtors before taking legal action.
Rumours that charging orders are going to be made easier to obtain will make it even easier for creditors to simply place a ‘charge’ on a debtors home, stocks, shares or land. Although the creditor will not receive the amount outstanding immediately, he has the reassurance that a debtor cannot sell his home without paying the outstanding debt first. Also of concern is that new powers given to Bailiffs will make it even easier for them to seize goods from a debtors home.
Taking a debt to court will add even further costs to the consumer who was already struggling with payments prior to the matter becoming a legal issue. Creditors need to find alternatives to the short, sharp, shock treatment of court proceedings as in some cases, debtors may be able to have their repayments reduced to as little as £1.00 per month if they can prove that they are financially incapable of paying the large sums requested. This is clearly not in the interest of either party and there are no winners at the end of this futile battle. The only satisfaction a creditor can receive at this stage is the fact that they would have tainted their debtor’s record.
Any CCJs will be recorded on the Register of County Court Judgements for six years, thus making it difficult for a debtor to obtain credit and pushing them further toward a future of bankruptcy. This stresses the importance of seeking debt advice immediately upon threats of a default notice or County Court Judgement.
