Personal insolvencies drop in the North

London, UK, 21 September, 2015 –Towns in the North of England and Scotland experienced the biggest falls in personal insolvencies during the second quarter of 2015 (April – June).

Experian research shows that, increasingly, people across the UK are benefitting from improving financial conditions and becoming more financially savvy. As a result, six in every 10,000 households became insolvent in Q2 this year, compared to 10 in every 10,000 households in the same period last year.

Northern regions fared best, with half of the top 30 list being dominated by northern England and a third by Scotland. Hamilton in South Lanarkshire saw the biggest recovery, with insolvency rates decreasing dramatically from 13 in every 10,000 households in Q2 2014, to three in every 10,000 households in Q2 2015.

At the other end of the scale, England’s southern towns have the highest rate of insolvencies per household. The number of people declaring themselves insolvent grew at the fastest rate in Hatfield in Hertfordshire, even though it should be used as a last resort. The town’s rate increased from six in every 10,000 households in Q2 2014 to eight in every 10,000 households in Q2 2015.

Half of the 10 worst towns for insolvencies were also located on the coast. Torquay had the highest insolvency rating with 16 in every 10,000 households.

Andy Wills, Data Director at Experian Consumer Information Services, said: “While it’s encouraging personal insolvency levels are falling overall, there are still pockets of the UK that are feeling the strain. It’s these areas where the need for responsible lending is greatest. To manage this, it’s vital that providers have a full picture of their customers’ specific needs, characteristics, and financial situation.

“We work with lenders to give them this insight so they can treat vulnerable customers fairly. But for people still feeling the strain higher property prices and living costs can make the road back to recovery difficult. Becoming insolvent, however, is not the end of the road, with patience and the right guidance it’s possible for people to rebuild a positive credit history. Understanding how lenders will view your credit report in light of insolvency is vital.”

Experian has launched a new guide available at www.experian.co.uk/improve that gives practical guidance around bankruptcy. It also outlines other options that may be available if people become insolvent, such as Individual Voluntary Agreements and Debt Management Plans – and, vitally - to help people understand how to get back on track after a major financial setback. The guide is the latest in a series of guides developed by Experian to demystify the credit referencing process and help people prosper through better decisions every day.

-Ends-

Notes to editors

Top 10 towns by highest insolvency rate

Top 30 improving towns by number of insolvencies per HH Q2 2014 – Q2 2015

Top 30 towns with the biggest rise in insolvencies per HH Q2 2014 – Q2 2015

For more information please contact:

Contact:

Tom Pavey Smith / Sarah Muir

Lansons
020 7490 8828
thomasps@lansons.com/ sarahm@lansons.com

About Experian

We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft.  In 2015, we were named by Forbes magazine as one of the ‘World’s Most Innovative Companies’.

We employ approximately 17,000 people in 38 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2015, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, ‘Inside Experian’.