Judgments against consumers fall 35%

There has been a reduction in the number and value of judgments against consumers indicating that there has been a stabilisation in the economy.

New figures by credit analysts Vision-net show there has been a 35% decline in the number of consumer judgments in April 2014, while the value of these judgments has also decreased by 53% compared to April of last year.

There were 331 corporate and consumer judgments awarded during April 2014, totalling €19.3m. Of these, 226 judgements worth €14.6m were awarded against consumers, amounting to an average of €64,733 per judgment.

Managing director of vision- net.ie, Christine Cullen, said that the reduction in consumer judgments was a good omen for the retail and hospitality sector.

“The reduction in both the number and value of judgments awarded against consumers is good news.

“As consumer debts fall, sectors heavily reliant on discretionary spending such as the retail or hospitality sectors, may benefit with a bounce in sales in the months ahead,” she said.

While consumer judgments are falling company insolvencies remain high with an average of four a day last month.

The figure is in line with those recorded in May, 2013. The total insolvencies figures comprised 89 liquidations, 20 receiverships and 3 examinerships during May.

Dublin accounted for a third of all company insolvencies, followed by Cork with 9% and Galway and Wexford with 8% and 7% respectively. The highest number of company insolvencies were in the professional services, construction, wholesale and retail and manufacturing sectors.

Dublin also led the start-up tables, accounting for 48%. In 2013, Cork had 11% of all start-ups but this has fallen to 9%. In Galway, the percentage of start-ups has reduced from 5% to 3.8%. “A stronger focus on encouraging new companies to develop outside of Dublin is needed to foster balanced regional development and ensure Dublin’s housing supply problems and pressure on critical services are not exacerbated,” she said.