Decrees against Scottish companies skyrocket

The number of debt decrees registered against Scottish companies sharply rose during the first quarter of 2018, according to figures released today by Registry Trust.

The non-profit organisation which collects decree and judgment information from jurisdictions across the British Isles and Ireland said there were 750 decrees issued against all businesses in Scotland during Q1 2018, four per cent more than during the same period of the previous year.

Decrees are incontrovertible proof that debt has not been managed.

In Scotland, Registry Trust collects information on small claims, summary, ordinary cause and simple procedure sheriff’s court decrees.

A massive 39 per cent rise in the number of decrees issued against companies accounted for last year’s increase; the number of decrees registered against the generally smaller, unincorporated businesses sharply decreased by 42 per cent.

The rise in the number of decrees issued, coupled with a marginal one per cent increase in average value caused the total value of business decrees to increase five percent.

During Q1 2018, 7,259 debt decrees were registered against Scottish consumers, six percent more than in Q1 2017. Despite rising in number, a 14 per cent fall in average value led the combined value of all consumer decrees to drop nine per cent compared to the first quarter of the year before.

A seven per cent increase occurred in the number of consumer small claims and summary cause decrees issued. In contrast, the number of consumer ordinary cause decrees fell by seven per cent.

Only 3.17 per cent of decrees were marked as satisfied during Q1 2018, far lower than the 13.14 per cent of satisfied debt judgments in England and Wales, where satisfaction rates are generally higher owing to legal differences.

Trust chairman Malcolm Hurlston CBE advised people who had paid back: “If you have satisfied a decree, tell Registry Trust and we shall let credit reference agencies know. Then you are likely to find borrowing easier and cheaper. You need to tell us, it doesn’t happen automatically. Fewer than a quarter of the people in Scotland who pay back are getting the recognition they deserve.”

In Q1 2018 Registry Trust received 9,122 requests to search the register for Scotland online at www.trustonline.org.uk. TrustOnline allows anyone to search for judgments and similar information registered against consumers and businesses in any jurisdiction across the British Isles and Ireland.

Mr Hurlston said: “If you are considering any business transaction you would be wise to check for decrees or judgments first. It is fast, cheap and easy to look on TrustOnline.”