Northern Rock writes off £1bn of debts in one year (From Hampshire Chronicle)

Northern Rock writes off £1bn of debts in one year

10:25am Thursday 11th March 2010 in

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NATIONALISED bank Northern Rock wrote off more than £1 billion during 2009 as the number of people defaulting on their debts soared, figures showed today.

Losses on bad debts at the bank, which saw protests outside its Southampton branch last year over the level of home repossessions it pursued, pictured, reached £1.04 billion during the year, a 17 per cent rise on the amount it wrote off in 2008.

The company, which in 2007 suffered the first run on a British bank since the 19th century, reported losses narrowing to £257.5m from £1.36bn in 2008.

The group blamed the high level of bad debt on rising unemployment and falling house prices, as well as increasing numbers of customers falling behind with their repayments.