“Alarming” rise in consumer decrees

There were more small claims decrees for debt against Scottish consumers in Q1 2017 than in any other first quarter on record, according to figures released today by Registry Trust.

Figures compiled by the non-profit organisation, which collects decree and judgement information from jurisdictions across the UK, including small claims and summary causes and ordinary cause decrees in Scotland, show that in the first quarter of the year, 6,879 debt decrees were registered against consumers in Scotland, over a third higher than the same period last year.

The average value of a consumer decree rose seven percent to £2,692, bringing the combined value of all decrees to £18.5m, almost 50 percent higher than Q1 2016.

The trends for small claims and summary causes and ordinary cause decrees were broadly consistent, albeit the increase in the number of small claims and summary causes decrees was larger.

Only 3.71 percent of decrees were marked as satisfied in Q1 2017, far lower than the 11.83 percent of satisfied debt judgments in England and Wales, where satisfaction rates are generally higher owing to legal differences.

Under a new initiative from Registry Trust, lenders are being encouraged to notify the Trust directly when a decree has been settled to their satisfaction. At the moment, the onus lies with the consumer to take the action, which is logical but does not work well enough in practice. Lender notification would make an immediate difference in Scotland, helping transform access to credit for thousands of consumers.

“The increase in the number of decrees looks alarming, particularly as the average value is rising at the same time,” said Registry Trust chairman Malcolm Hurlston CBE. “Elsewhere in the United Kingdom consumer judgments have risen while average values have fallen.”

In Q1 2017 Registry Trust received 8,542 requests to search the register for Scotland online at www.trustonline.org.uk.

TrustOnline allows anyone to search for decrees and similar information registered against businesses and consumers in any jurisdiction across the British Isles and Ireland.

“It is a unique benefit for consumers to be able to check the debt record of any person or business with which they may be transacting,” said Mr Hurlston. “Negative information would certainly make me think twice.”