Budsworth – The Debt Advisor FCA regulated Debt Solution Provider
increasing against consumers
Judgments in first quarter of 2021
Judgments against consumers have increased by 21 %
above final quarter of 2020 but still below quarter 1 2020. Average judgment
debt has risen from £750 to £807. The introduction of Breathing Space
for individuals on 4 May 2021 which gives 6 weeks of protection against
creditor action during which consumers must seek debt advice is likely to see
judgment and enforcement action slow up further.
CCJ’s against businesses are 55% lower than in Q1 2020.
For the past 3 quarters the numbers have been around 15,000. According to
Registry Trust, North West businesses saw the steepest rises – up to 23% from
Q4 2020 but still lower than Q1 2020 by 42%,
lifts ban on repossession of Goods, Vehicles and Properties
The FCA confirmed from 31 January 2021 the ban on
repossessing good and vehicles was lifted. The ban on repossessing properties
was extended until 31 March 2021. From 1 April 2021 lenders can repossess
properties but the FCA has warned lenders to treat homeowners fairly. Again Breathing Space can prevent such actions from continuing but there will
have to be sensible plans put forward to deal with mortgage arrears.
UK government announced on 23 March 2020 that
commercial landlords are to be precluded from forfeiting commercial leases and
evicting the tenant for non-payment of rent. This measure was subsequently
extended until 31 December 2020 and then further to 30 June 2021. On 16 June
2021, the Government announced its intention to extend this moratorium
by a further 9 months until 25 March 2022.
Action by Private Landlords and
The stay on possession proceedings expired on the 20 September
2020. This means landlords can pursue possession proceedings through the court.
Between 29 August 2020 and 31 May 2021, with the exception of
the most serious cases, landlords needed to give their tenants 6 months’ notice
before starting possession proceedings.
From 1 June 2021, notice periods must be at least 4 months in
most cases, including where the tenant has less than 4 months’ rent arrears.
From 1 August 2021, the notice period for cases where there are
less than 4 months of unpaid rent, will further reduce to 2 months’ notice.
Notice periods for the most serious cases, as set out above, are lower with
most requiring 2 or 4 weeks’ notice. The notice period for ‘serious arrears’ is
4 weeks’ notice and the threshold for what constitutes ‘serious arrears’ is
‘arrears equivalent to 4 or more months’ rent.
Up to 31 May bailiffs could not serve eviction notices or carry
out evictions but there were exceptions for the most serious circumstances that
presented the most strain on landlords.
The restrictions on bailiff enforcement will end at the end of
31 May, reflecting the improved public health situation and easing national
restrictions. From 1 June, bailiffs can send out eviction notices and enforce
evictions. Given the requirement to provide 14 days’ notice, no evictions are
expected until mid-June, except in the most egregious cases and bailiffs have
been asked not to carry out an eviction if anyone living
to Landlords and Tenants
The government has issued guidance
to landlords and tenants which relate to the private and social rented sectors.
The guidance covers guidance on rent, mortgage and possession proceedings as
well as health and safety obligations, repairs and inspections in the light of
Shelter have produced very helpful information for
a Judgment as a consumer
If you are a consumer facing judgment action, don’t
forget there is Breathing Space available through FCA regulated debt advice
providers including The
Debt Advisor. The link provides detailed information
on who Breathing Space can help, what debts are covered and the process. Our
team are available on freephone 08000851825.
There is also very helpful advice on dealing with
judgments at National
As a business if you are struggling to deal with your
debts, there are a range of possible solutions which are detailed at The Business Debt Advisor.
The options depend on whether your business operates as a sole trader, partnership
or limited company.
It’s vital that you feel comfortable speaking to
someone who will ensure that they fully understand your businesses
circumstances before making any recommendations. Certainly if any organisations
Debt Advisor which includes The Business Debt Advisor have
been advising individuals and businesses for over 21 years. Doing the Right Thing is vital for your
clients and this starts with ensuring that they get “whole of market” advice on
the options available to them.
The Debt Advisor Ltd is authorised and regulated by The Financial
Conduct Authority, number 659920. This means we are able to offer debt advice
and deliver both formal and informal debt solutions. There are sources of free
debt advice and services. You can find out more by contacting the Money Advice
Service on 0800 138 7777 or by visiting their website.