Increase in summonses for debt: Stats SA

The number of civil summonses for debt for the three months ending August 2008 increased by 0,9 percent compared with the same period in 2007, Statistics SA said on Thursday.

Findings for the statistics of civil cases for debt released on Thursday showed that the increase was the first annual one for a three-month period since the 2,4 percent increase reported for the three months ending May 2007.

The major contributors to the increase were civil summonses issued in respect of other debt (2 percentage points), professional services (1.1 percentage points) and rent (1.1 percentage points).

Two categories that counteracted the increase of 0,9 percent in the number of summonses issued were the categories money lent (-2.4 percentage points) and goods sold on an open account (-0.8 percentage point)

Findings also showed that the number of civil judgments recorded for debt for the three months ending August 2008 continued to decrease.

The total number recorded for debt decreased by 13,8 percent.

There was also a decrease of 20,8 percent between August 2007 and the same period in 2008.

Civil judgments in respect of money lent (-7.4 percentage points), promissory notes or notes payable and other acknowledgements of debt (-6.7 percentage points) and other debts (-1.1 percentage points) were the main drivers behind the 13,8 percent decrease.

The value of civil judgments recorded for debt increased by 4,6 percent for the 2008 three-month period ending August 2008 compared to the same period in the year before.

However, there was a decrease of 4,8 percent in the value of the civil judgments recorded for debt between the two.

The major contributors to the increase were civil judgments in respect of money lent (7.5 percentage points) and instalment sale transactions (1.0 percentage points).

During August this year 52 845 civil judgments for debt amounting to R497,4-million were recorded.

The findings showed that the largest contributors to this amount were civil judgments related to money lent (R176,5-million or 35,5 percent), other debts (R105,4-million or 21,2 percent), promissory notes (R50,7-million or 10,2 percent) and other services (R49,4-million or 9,9 percent). - Sapa