Lenders more aggressive towards indebted Londoners

by Gill Montia

Story link: Lenders more aggressive towards indebted Londoners

Capitalise, the London-wide partnership of debt advice and homeless charities, has published a new report which “unveils a grim picture of debt in the capital”.

The study, entitled “Up to our neck in it”’ found that personal debt is deeper and more widespread since the recession and that creditors are being more aggressive in recovering payment.

Debt advisers reported that lenders are passing on more cases to debt collection agencies and resorting to court actions or bailiffs.

According to Capitalise, between 2007 and 2008, repossessions of assets increased by 40% and spokesman, Graham Fisher, is calling for more intervention where creditors are acting unreasonably.

He also suggest that employers also have an important role to play in “preparing their workforce for potential redundancy and helping them to take preventative measures to stop them sliding into debt”.

Requests for free debt advice have risen by 35% across the Capital since April of last year and the average Londoner seeking free face-to-face advice has debts of just over £18,000.

The sum has increased by 16% since January 2007 although the average annual household income of someone seeking advice has remained the same, at £10,000.

The report is based on data collected from around 20,000 people who have received free face-to-face debt advice.