The Government has just released
scores on the doors for County- Court civil (non-family) cases in England and
Wales for July to September.
The number of cases "dealt with" stood at almost
half a million – an increase of around 24% on the same the previous year. This is the highest
quarterly total since 2008, and is driven entirely by an increasing trend in
specified money claims being issued at the County Court Business Centre
(CCBC).
Specified Money claims
91% of claims were money claims. These claims can be filed on line and
are then issued in bulk by the County Court
Business Centre (CCBC) in Northampton.
The number of claims
"issued" is reflective of the volume of claims filed and the
increase in claims is of concern since
it is a gauge of the number of debt recovery contract and property damage
disputes (amongst other claim types) being pursued.
Household debt is rising
The governor of the Bank of England, Mark Carney,
has given a warning about the high level of debt in UK households. In particular he said that consumers
were borrowing more on their credit cards and other unsecured debt. Figures
showed that credit card lending is at a record level, up by £571m in the last
month.
Non-specified Money claims
9% of claims were non-specified money claims – which were mainly
personal injury claims. Despite protestations about ever –increasing volumes of
whip-lash cases, the number of non- specified Money claims reduced by 8%
compared to the same quarter in 2015.
Early help
to chase debts
Once they have registered to use our on-line legal services
Essential Business Legal policyholders can create a series of useful debt
recovery letters which can be effective in avoiding arrears accruing. Our
legal document website has smart software that allows the user to populate
the letters by prompting for required information in response to simple
questions. Guidance notes are available to help with this process and there
is a progress bar which shows how much of the process has been completed.
The first letter in the series is a polite reminder. If no agreement
to pay is received after a couple of weeks the second letter can be sent to
the debtor. The third letter is a final demand which can be used as a
"letter before action" if the customer still refuses to pay the
sum(s) owed. Users should select "Money Claims on-line" when they
get to a question about filing a claim .The documents are so smart that they
allow the user to automatically calculate and add interest for late payment.
We would recommend that policyholders retain evidence that they have
sent the letter(s) – either by retaining confirmation of recorded delivery or
e-mail receipt. When all attempts to collect have been exhausted,
policyholders can download a claim form (from the legal services website, or
from our company website). This should be completed and sent to us with
evidence of sending the debt recovery letters. We will validate the claim and
instruct a lawyer under the terms of our Insured's LEI policy to pursue the
debt.
|
Final words from me…. Debts are increasing…. Get your ARAG
policyholders to register for on-line legal services. It could prevent debts
escalating but if it becomes necessary to pursue legal action you have them
covered!
