CCCS Consumer debt and money report

New research commissioned by the Consumer Credit Counselling Service (CCCS) suggests young people are being disproportionately affected by the deteriorating state of the economy.  

The CCCSConsumer Debt and Money Report Q1 2012, produced by the Centre for Economics and Business Research (Cebr), identifies a generation of ‘baby-busters’ – people born in the 1980s to the baby-boomers but facing a range of problems limiting their financial prospects. 

Unemployment

• Under 25s now make up the largest group of unemployed people in the UK. One in four men and one in five women aged under 25 are out of work – with increasing long term consequences. Among young people helped by CCCS, around 45 percent are unemployed compared to 30 percent of all debt advice clients.

Stagnating incomes, struggling with debt

• In the first quarter of 2012, CCCS provided debt counselling to 3,600 people under the age of 25, or around 40 people every day. Unsecured debt levels are relatively low, averaging £5,800, but low incomes and high unemployment make repayment more difficult – average monthly take-home pay is £980, £400 less than the average client.

Tuition fees

• With two out of five young people aged 18-22 attending university, tuition fees will add roughly £9,500 to the debt burden of the average British citizen of future generations, meaning less money available for savings and less of a cushion against debt distress.

For the population as a whole, the CCCS Interest Burden Index shows debt servicing costs are broadly stable. The typical household paid £197 a month to service debts, more than a quarter of average household income after essential living costs. 

The report is based on data compiled from CCCS activities – more than 1,000 people get help from the charity to resolve debt problems every day.

Banks slash jobs

Some 1,400 jobs are set to be slashed at the Clydesdale and Yorkshire Banks by 2015 due to a significant downgrade in the UK's growth prospects. National Australia Bank, which owns the two banks, confirmed the cuts and blamed the double dip in the commercial property market.

Pub Closures

According to figures released by the Campaign for Real Ale (CAMRA), more than 10 pubs are closing across Britain every week. Some 300 community pubs - based in suburban and rural areas - permanently closed between September 2011 and March 2012. Despite Britain's high streets showing "resistance" - recording a net loss of six pubs during the six month period - about 12 pubs a week are closing in less built up areas.

London House News

We are delighted to advise that, again, we are in the middle of training our newest Franchise Owner. John Ginivan has taken on the Romford area (RM postcodes) and will be trading as a limited company "London House Services (Romford and Thurrock) Ltd".

John has a BSc (Hons) degree and has been a senior manager in investment banking with many years experience with ABN Amro Bank.  Previously he had spells with Goldman Sachs and Commerzbank.  John is experienced with the full product range including risk and reconciliation. Welcome aboard John.

 London House Services (Romford and Thurrock) Ltd 

Further training courses are also booked in the diary for more new Franchise Owners and we will give more information next month. 

Our South East London Franchise Owners, Chris Metalle and Chris Richards, have expanded their rapidly growing business by merging with the asset recovery business, L and E Receivables. The combined operation will continue to offer asset finance companies quality management of their arrears cases with the added benefit of greater geographical coverage and more advanced systems. Alex Barnetson of L and E has joined the board of LTR as the director responsible for arrears management. We send our best wishes for this new and exciting venture which offers finance houses a service in tracing and negotiating with clients in arrears and recovering the assets, particularly vehicles, from anywhere in the UK if required through the London House network. Press release

Finally, our latest edition of "The Score" will shortly be arriving on your desks. It is available now online by clicking on the link in the left hand column. We hope you enjoy it.

You Asked Us

"The CSA has recently released, for the first time, details of the debt levels that have been passed to its members for collection. Any thoughts on the amounts?" 

They are big to say the least! At the end of 2011, the total value of unpaid consumer debt held by CSA members for collection stood at £58 billion (£58.179bn), comprising £31 billion (£31.239bn) placed by creditors with DCAs to collect, and a further £27 billion (£26.940bn) of purchased debt owned by Debt Buyers. 

The total volume (ie number) of consumer debts awaiting collection by CSA members now stands at a staggering 32 million (32,130mn) as at the end of December 2011 - the equivalent of at least one significant debt for every UK household or £1,000 of uncollected debt owed by every man, woman and child in the country. 

The figures show a rise on previous quarters, both in volume and amount, reflecting the economic climate. We are, of course, officially back in recession. In view of this, it remains to be seen how much of these figures can be collected. Full details can be found at the following link:

Unpaid debt figures

Focus On.........Process Serving

As you would expect, we are experienced with High Court, County Court and Magistrates Court and will attend at the address of the subject and personally deliver documents and thereafter swear an appropriate Affidavit of Service. It is our practice to attend at various occasions to effect personal service at no extra charge to our client. We are happy to collect documents from Court or from a client's premises if required.

We have over 40 London House regional offices giving UK-wide coverage. We also operate worldwide through a network of accredited international agents.

Got You!

Recently one of our Franchise Owners attempted to serve a Court Order on a debtor in his local area. He met the subject at the address provided by the client a couple of times but he insisted he was not the man we were after and was 'sick to the back teeth of people calling round looking for this bloke ......'. He was not a happy man.  Local enquiries suggested it was in fact him but he denied his identity again. 

We informed the client and they decided that as there was strong evidence that it was him, our Manager should letterbox the Order. Unsurprisingly he failed to attend the hearing and a Suspended Committal Order was eventually issued and sent to us for serving.  We did a little more digging and discovered a website page for the man and, handily, a photo that showed that the man we'd peviously met was indeed the right person. Further enquiries revealed that the debtor was a political party candidate in the local elections being held this month.  So our Franchise Owner personally served him at the local polling station!  Priceless.