Scots still penalised long after paying off debts - Registry Trust

Scots who pay off outstanding debts could continue to be penalised because the authorities are not being informed of payments, the Registry Trust says.

The warning comes from Malcolm Hurlston CBE, chairman of Registry Trust, the non-profit organisation which collects decree and judgement information from jurisdictions across the UK - a decree is incontrovertible proof of failure to manage debt.

“Many Scottish consumers are not getting the credit they deserve when they are not informing Registry Trust that a settlement has been made,” Mr Hurlston explained.

“So now we are working closely with concerned lenders to ensure that they notify us directly when a debt has been satisfied, and the onus does not lie only with the consumer.”

Chris Pond, chairman of the Lending Standards Board, welcomed the action. Mr Pond said: “Registry Trust should get a good hearing for promoting consumers interests.”

The warning comes on the day that figures from Registry Trust show that decrees against consumers flatlined in the third quarter of 2017.

Between July and September this year, a total of 5,334 debt decrees were registered in Scottish courts, one per cent lower than the same period the year before.

The average value of a consumer decree rose three percent to £2,836 compared to a year ago, and, at £15,127,874 the total value of consumer decrees increased by two percent.

The number, total value and average value of small claims and summary cause decrees remained close to Q3 2016’s figures, with less than a one per cent change occurring for each measurement.

In contrast, the average value of an ordinary cause decree rose by 20 percent to £16,816 compared with a year ago.

Only 3.82 per cent of decrees were marked as satisfied in Q3 2017, far lower than the 11.98 per cent of satisfied debt judgments in England and Wales, where satisfaction rates are generally higher owing to legal differences.

Registry Trust runs TrustOnline an internet service where consumers and businesses can search for judgments and similar information registered against consumers and businesses in any jurisdiction across the British Isles and Ireland.

In Q3 2017 Registry Trust received 7,922 requests to search the register for Scotland at www.trustonline.org.uk.

Malcolm Hurlston said: “TrustOnline is the only place where you can check on judgments against other people and businesses throughout the British Isles. It makes sense for anyone contemplating a transaction to make this quick, cheap and reliable check.”

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