Yesterday I read with interest but no amazment that county court judgments have hit a record level for the last 10 years or so. It seems that everyone is heading back to the courts after years going in the other direction.
The truth of it is that collections only works, no matter how sophisticated you are, if you not only have threat but are prepared to carry it out.
Smart collections companies have rightly focused on early collection of accounts and a more conciliatory approach, after all they got lots of bad press for not being responsible lenders. However, they are now heading back round the cycle towards more aggresive early collection with legal remedies as the concern must be that with rising interest rates, plateau'd house prices and inflationary pressures that harder times are ahead.
One of the areas we have focused on in our venture here at backincontact.com is the rehabilitation of accounts using a legal identity early rather than the point of last resort.
Solicitor's letters have always been great tools for eliciting a response so why have they always been kept for the final conflict ?
I think you're going to see a growing demand for the legal remedy and I'm sure that this quarter's insolvency figures are going to bear that out, watch this space!
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