Banks To Disclose Big Increase In Bad Debt

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Banks to disclose big increase in bad debt


By Harry Wallop, Consumer Affairs Correspondent
Last Updated: 3:09am BST 28/07/2007


The increasingly shaky state of householders' finances will be laid bare next week as Britain's top five banks report huge increases in bad debts.
City analysts expect them to declare that they have set aside a pot of £6.6 billion to deal with customers who can not pay loans and mortgages.
At the same time, official statistics from the Department of Justice are expected to show a jump in the number of houses being repossessed, with submissions to take back homes jumping from 78,000 in 2004 to 132,000 in 2006.
Insolvencies could also hit a record next week when the quarterly figures are released. In the first three months of the year 300 people a day were declared bankrupt or entered insolvency arrangements.

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/07/28/ndebt128.xml