Last year the number of County Court Judgments (CCJs) against businesses in England and Wales plummeted to the lowest level since 1989. In 2010, 27.1 percent fewer debt judgments were recorded against businesses compared with 2009.

In total 150,900 CCJs were issued according to Registry Trust’s annual statistics. This is 56,200 fewer than last year’s 207,100 judgments.

Registry Trust is the non-profit organisation which operates the Register of Judgments, Orders and Fines for England and Wales on behalf of the Ministry of Justice in the public interest.

The value of County Court Judgments (CCJs) issued against businesses in England and Wales also fell by almost a third from 2009 to 2010.

The annual statistics of Registry Trust show a decrease from £899m in 2009 to £613m in 2010 – a £286m drop. This is the lowest total for a calendar year since 2005.

Including judgments against businesses and consumers, the total value of CCJs in 2010 fell 24.9 percent from £3.5bn to £2.6bn. This comprises a total of 730,600 judgments – 20.2 percent fewer than 2009 when there were 915,000.

In 2010 a record 72,900 separate searches were conducted for England and Wales – 10,600 more requests than the previous highest figure. The vast majority used Registry Trust’s online system at www.trustonline.org.uk. A single search request costs £8 and it takes a matter of minutes to complete the form.

Registry Trust chairman, Malcolm Hurlston, observed that “While the headline figures here are certainly dramatic, falling numbers of CCJs do not necessarily mean falling levels of debt.

“Going through the courts is one of several options available to people looking to recover losses; but the final decision is a commercial one. What is clear is that judgment information is of increasing importance.

“To avoid future difficulties businesses need to increase their awareness of the credit world.

“Any delay in payment of bills not just by your direct suppliers, but anywhere in your supply chain can lead to trouble in times when credit is so hard to come by.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.

People suffering from mental health problems are five times more likely to have a debt crisis than the rest of the population, research has indicated.

Around 44% of people who have a mental health problem, or who have a partner with one, have severe or crisis level debts, compared with just 9% of people who do not have any mental health issues, according to MoneySavingExpert.com.

At the same time, only 40% of people with mental health problems have either never been in debt or have only ever had limited debts, compared with 75% of the rest of the population.

The group, which questioned 6,700 people, said many were stuck in a downward spiral in which mental health problems could cause severe debt, while severe debt could cause mental health problems. But it said the sheer scale of the problem was hidden because of the stigma attached to both issues.

Martin Lewis, creator of MoneySavingExpert.com, said: “We can no longer divorce how people deal with debt emotionally and how they deal with it practically. With so many suffering from mental health problems, as a nation we need to think about how we help those who, often temporarily, cannot be responsible for themselves.”

He said simple steps that could be taken included allowing people to voluntarily register their mental health problems, so that banks could track unusual spending patterns, and cut off accounts until a trusted person said it was all right to allow access again.

The group has launched a 40-page guide, which is available at www.moneysavingexpert.com/mentalhealth, (a preview of which is detailed below) providing help for people with mental health problems who are in debt, as well as information for their families and carers.

The guide, which has been written with guidance from charities such as Mind, Rethink and Christians Against Poverty, gives details on where people can find free one-to-one debt counselling, how to work with banks and tips for people with bipolar disorders and depression.

The group said research suggested that 44% of people seeking help with debt had been prescribed medication to help them cope, while 38% had considered suicide as a way out.

Paul Farmer, chief executive of mental health charity Mind, said: “When people’s mental health deteriorates, it can be even harder for them to deal with debt, and the more their debts add up, the worse they feel, setting up a cycle of debt and despair that is very difficult to break.”

Top tips for dealing with mental health and debt

1. There’s no such thing as an unsolvable debt. As Martin Lewis, MoneySavingExpert.com’s creator, says: “For as long as I’ve been doing my job, I’ve never once seen a debt case that isn’t solvable. It may not be easy, it may not be quick, but it’s always doable.” If you start to sort it out, it does get better.
2. Know the early warning signs. Even when people plunge into debt, depression doesn’t bite overnight. Dr Rob Waller, consultant psychiatrist and director of www.mindandsoul.info, advises working out your warning signs, eg, tension headaches, arguments at work, back pain or bad skin. This is the time to take steps to keep on top of debt and depression.
3. If in crisis, get free debt help. If you’ve not got enough to pay the bills, visit a non-profit free debt counsellor, whose job is to help you, not to make money out of you. Try Christians Against Poverty, which specialises in helping those in debt who are emotionally struggling, or agencies such as the Consumer Credit Counselling Service and Citizens Advice.
4. Stop borrowing. It sounds obvious, but sorting out existing debts is harder if you keep adding to them. If you feel up to tackling your finances, the easy start point is to do a budget and work out where the money’s going (free planner at www.moneysavingexpert.com/budget).
5. Consider informing your bank. Once a lender is aware that a customer has a mental health condition, it has to make adjustments. The Lending Code says banks should consider keeping a debt in-house rather than passing it to debt collectors and make court action the last resort. Though telling your bank is a decision to discuss carefully with a case worker or debt counsellor.
6. Check if you qualify for DLA. In some cases, mental health issues can qualify you for disability living allowance (DLA) of between £19 and £121 per week (though this is currently under government review). Do benefitsandwork.co.uk’s quick DLA test see if you qualify.
7. Banking control if you have bipolar. A few banks have minor procedures to allow you to register your mental health issues and stop your overdraft going beyond a certain amount. Bipolar disorder sufferers, who may be prone to overspending during a manic episode, could consider discussing this with their bank (worth chatting through with a debt counsellor or case worker first).
8. Consider adding a note on your file. If you overspend when you are unwell, you can volunteer to add information on mental health problems to credit files in what is called a notice of correction, which alerts potential lenders so they don’t lend further credit. This can be added or removed whenever you want. There is full help to evaluate this decision in the guide.
9. Cut your interest rates. The lower your interest rate, the more of your repayment goes towards clearing the actual debt, rather than just servicing the interest. For example, if you have credit cards, see if it’s possible to do a balance transfer that pays off the debts on old cards for you, so you owe the new card the money at a cheaper interest rate.
10. Repay highest rates first. Try listing your rates, then focusing all spare cash on clearing the highest interest debts first; just pay the minimum on everything else. Once the highest is clear, you can shift to the second costliest.

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of both ‘The Press Association’ & ‘www.creditman.co.uk’  and the full original articles can be found by clicking here & here

The spectre of full civil war in oil-rich Libya and reports of the creation of an Islamic emirate in the country’s “Barqa” region has moved the Mid-East crisis into a more dangerous phase, setting off an explosive rise in US crude prices.

Over forty percent of people (43%) believe that their financial situation will worsen over the next six months, according to a quarterly survey by R3, the insolvency trade body – an increase of 13 percent on the last quarter. Incidentally, less than a quarter of people (24%) believe that their financial situation will improve in the same period.

R3 President, Steven Law commented:
“Since we last carried out the survey, people have seen a rise in the cost of living, from the VAT increase; to the rise of fuel and utility costs. This has happened against a backdrop of pay freezes, pay cuts and, in some cases, redundancies, so it is understandable that many are feeling pessimistic about their financial outlook.”

The research shows that the number of people who are worried about their current level of debt has increased by 6 percent in the last quarter, with close to half (45%) now concerned about the amount of debt they owe. Credit card debt continues to be the main source of worry, with more than half (56%) expressing concern.

Research finds that younger people are more likely to worry about their debts. Those aged 25-34 are the most likely to be worried about their debts at 57%; meanwhile just 20% of those aged 65 and over are concerned about their debts – making them the least likely to be worried.

“In my experience, most people’s debts become unmanageable due to a change in circumstance, such as sudden unemployment. This no doubt accounts for the generational split with regards to debt worries. In these uncertain times, for many of those of working age there is a real fear that if they do suddenly lose their job they will struggle to keep up with their debt repayments.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.

Clydesdale and Yorkshire Banks today announced that they are to significantly increase their support for small businesses across the UK.

The move will expand the services and products on offer to businesses, typically those with turnovers of less than £1million or borrowing of less than £250k, and create a real choice in the market.

The estimated 5 million small businesses in the UK are a key driver of the economy. Collectively, they represent 35% of the turnover of all UK businesses and 55% of all business current accounts. In addition, an estimated 400,000 new businesses start trading each year. (Source:BBA)

New Lending

The Banks are already on track to achieve their 2-year pledge to provide £10bn of new lending by the end of 2011. This new move will support that target and see levels of lending to small businesses increase significantly by 2015.

Last year, the Banks appointed Gary Lumby as Director for Small Business; to lead and develop the Banks’ small business proposition. Today’s announcement is the result of Gary’s review of the sector – a new service that combines innovation with the Banks’ traditional values and customer-led approach: a model built on local support for local businesses.

The new small business service will initially offer a local, “high street” presence with additional 24-hour telephone support. An online banking service will also be introduced in the summer.

The new team of over 100 Small Business Managers and Business Development Managers are initially being sited predominantly across the North, Midlands and Scotland but extend as far south as Maidstone; with further appointments expected through the year in these regions and the South, extending coverage to Exeter and Truro in the near future. The Banks anticipate that a successful roll-out of the new service will lead to a significant number of further appointments over the next 3 years.

Local High Street Services

Rather than eschew the “high street”, the Banks believe that many businesses will welcome the return of local, relationship-based banking that enables swift lending decisions and creates networking opportunities. These local business managers will be supported and supplemented by online banking and telephone-based business advisors.

The Banks believe that by offering alternatives to small business customers they can choose the type of banking relationship that is most appropriate for their needs. The new Small Business Managers will concentrate on building and supporting relationships with businesses such as shopkeepers, family businesses, tradesmen, small manufacturing and engineering firms, and professionals; accountants or architects, for example.

Each Small Business Manager will have a limited customer portfolio size to ensure that they can maintain close working relationships with their clients. There is also a requirement on each of them to spend ‘time in the line’ with customers so that they gain first-hand experience of what it is like to run a small business.

Small Business Managers and Business Development Managers will be located in either high street branches or Financial Solutions Centres (see Editor’s Notes). Initial sites for them include Glasgow, Edinburgh, Worcester, Bristol, Newcastle, Aberdeen, Nottingham, Liverpool, Guilford, Coventry, Doncaster and Manchester.

Market Leading Offers

Clydesdale and Yorkshire Banks are also offering two “best buy” deals for small businesses. The first is for start-up small businesses; these businesses can benefit from 24 months of free banking, giving them the opportunity to grow without the burden of day-to-day business banking fees.

The other deal is for those small businesses that are unhappy with the service they are receiving from their existing bank. It is estimated that up to 250,000 businesses are in this position (Source: Federation of Small Businesses) Clydesdale and Yorkshire Banks are offering a switching service plus 18 months free day-to-day business banking.

Gary Lumby, Director for Small Business, Clydesdale and Yorkshire Banks, said:

“Small businesses are the lifeblood of our communities and economy. We’ve been listening to them and have developed our business to help them develop theirs. We see a real opportunity to offer a credible alternative; establishing local relationships to help small businesses flourish, with local knowledge and services that suit their needs; in branch, online or by phone.

“The evidence suggests that the small business market is underserved by the ‘Big Banks’. We see this as a great time to correct that and build on our already successful business banking approach. Today’s move underlines our commitment to UK businesses.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.

Britain’s banks should not be forced to lend and small businesses are pointing the finger in the wrong direction for their failure, according to the leader of one of the top business organisations.

Philip King, Chief Executive of the Institute of Credit Management (ICM), says that the agreement reached by Britain’s largest banks to new lending reforms will serve merely to hide a much bigger problem: “I have seen several examples where a bank’s refusal to lend appears to lack logic, and they have made unreasonable and unacceptable demands of their customers”.

“But I have also seen small businesses that are clearly in terminal decline, blaming the banks for their woes when it’s obvious that lending more money would only have delayed the inevitable insolvency.”

Mr King agrees that the banks’ record of supporting businesses is not as good as it is claimed to be, and getting the top level thinking down to local management is similarly not as effective as it might be. But a bigger problem is that SMEs are not as good at producing credible business plans to support requests for funding as they should be, nor as good at collecting cash due to their businesses as they need to be:

“It’s about the basic principles of good credit management – you don’t lend more than a customer can afford to repay and you drive profitable sales while protecting your business against unnecessary and avoidable risk.

Mr King is also wary of the Government’s track record in delivering projects of such scale: “The Government doesn’t deliver initiatives in a way that makes them easily understood by business, and its follow-through is usually poor,” he says. “And there is a disconnect between the views of the small business organisations and the views of the banks about the reasons and causes of the funding availability issues.

“But regardless of the issues, banks should not be forced to lend to small businesses. What the Government should be doing is encouraging them to understand their small business customers better and provide them with best advice, and also be more imaginative in the type of help that they can provide.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.

The head of a national business support organisation has questioned banking industry pledges to boost lending to SMEs.

Phil Orford, the chief executive of the Forum of Private Business, asked how the banks intend to increase the flow of credit to smaller businesses if, as they claim, demand for lending is down and four out of five funding applications are already being accepted.

Speaking in response to lending pledges made by the major banks via ‘Project Merlin’, Mr Orford said: “The question we need to ask is how.

“The banks say demand is down. They say applications are running at an 80% acceptance rate. If this is the case, how do they intend to increase lending to small firms by 15%?

“I believe the answer is that they must review risk criteria and be less punitive on viability assessments – and make a particular effort to cut down on sector-based discrimination.

“The banks must be more proactive in securing up-to-date financial information from their clients and they need to communicate more clearly to applicants what the key assessment criteria are, so applications are more compliant with the lenders’ needs.”

Mr Orford added: “The message now to all small businesses is that the banks have committed to lend more. Test them on their commitment and get your applications in.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.

The number of debt judgments issued against businesses and consumers in Northern Ireland reached a record high in 2010.

The annual figures for Registry Trust show that the number of judgments rose by 2.6 percent on 2009. Registry Trust, the not for profit company which collects judgment information in the United Kingdom and Ireland, released its 2010 statistics for Northern Ireland today (February 8 2011).

The total value of these judgments fell by 8.7 percent to £25.7m. However, this is still far above the historical trend.

The public’s interest in the Register fines jumped by nearly 70 percent. During the course of the year Registry Trust received 7,331 separate requests to search the Register from Northern Ireland – almost 3,000 more than the previous record. These requests mainly come through www.trustonline.org.uk.

Judgment information provides vital credit history information, when, for example, doing business with a new company.

Announcing the figures Registry Trust chairman, Malcolm Hurlston, said: “It is not surprising that the public is becoming more cautious about potential skeletons in cupboards when it comes to debt.

“Any delay in paying bills, not just by your direct suppliers, but anywhere in your supply chain can lead to trouble in times when credit is so hard to come by.

“Checking their judgment history now at www.trustonline.org.uk could save you trouble in the future. A single search costs £8 and the form takes a matter of minutes to complete.”

If you would like discuss how our Debt Recovery/Debt Collection service can assist your business, please visit the ‘Debt Recovery/Debt Collection’ section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of Business Credit Management UK (www.creditman.co.uk)  and the full original article can be found by clicking here.