'There were letters I didn't want to open': Rise in unpaid debt court cases
Summary
More people in Britain are facing court action over unpaid debts, especially energy bills that have risen sharply. In the first three months of this year, there were over 270,000 new County Court Judgements (CCJs), a 17.5% increase from last year, as energy debt reaches a record £4.5 billion.Key Facts
- Mark Sumner owed over £2,000 after his energy bills rose from £80 to £220 a month.
- A County Court Judgement (CCJ) is a legal order requiring payment of debts and can affect credit records for six years.
- In the first quarter of this year, 270,537 new CCJs were registered, up 17.5% from last year.
- The total energy debt in Britain is now more than £4.5 billion, a record high.
- Some people are using credit cards and food banks to cope with rising bills.
- Falling debit card use and rising credit card use suggest more people rely on borrowed money for daily needs.
- Paying off a CCJ within one month of receiving it can remove it from a credit report.
- People like Jane in Coventry, who live on benefits and have health issues, struggle to pay energy bills and manage everyday expenses with help from charities.
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