A County Court Judgment (CCJ) is a type of court order in the UK that can be issued against someone who fails to repay money they owe. Here are the key points about CCJs. A CCJ is issued by a county court when someone claims you owe them money and you haven’t paid. It’s a formal demand to pay money owed to a creditor. CCJs can only be issued in England, Wales, and Northern Ireland. Scotland uses a different system called “enforcing a debt by diligence”.
What is county court judgement register?
The County Court Register in the UK, officially known as the Register of Judgments, Orders and Fines, is a public record maintained by Registry Trust Limited on behalf of the Ministry of Justice. For CCJ’s the register contains the name and address of the individual, case and court number and value of the money owed.
The register is checked as part of broader credit checks for example by employers (checks when you start with a company or on-going), landlords (for rental checks) or businesses (credit lenders).
How does a CCJ impact your credit report and score?
It will show on your credit reports from Experian, Equifax and TransUnion as they all use the same register. It will reduce your credit score significantly and will negatively affect your ability to access credit and any credit you can obtain will be higher interest rates. It is worth settling the amount owed as soon as you can to show potential lenders you have rectified the debt as quickly.
How can I rebuild my credit after a CCJ?
If you have repaid your CCJ it will still be harder to obtain credit until it is removed from your credit report some actions to take to help your credit score.
- Settle the amount owed as soon as you can.
- Make sure you are on the electoral roll by registering to vote.
- Check your credit reports and scores from Experian, Equifax and TransUnion.
- Limit your credit applications and use services that check your eligibility via soft credit checks to see how likely it is you will be accepted before applying for a credit product e.g. Moneysupermarket eligibility checker.
- Use a credit builder credit card for example from Vanquis, Capital one and Aqua in the UK. There are some cards who are for individuals with CCJ’s, but they have higher interest rates. Pay off the balance in full each month to show you are a reliable payer.
- Manage your other credit commitments carefully to ensure you do not miss any payments elsewhere.
How to check if you have a CCJ?
You can see if you have a CCJ via checking your credit report which you can access for free on-line. You can also access directly with Trust On-line for a fee.
How long does a CCJ stay on your credit report?
6 years unless you pay the full amount due in 30 days. If the CCJ is paid after 30 days, it is categorised as ‘satisfied’ but remains on your credit report showing in your history for 6 years.
How to remove a CCJ?
Pay it off in 30 days of receiving the judgement, then apply to the court to remove to have your entry removed from the register. Credit Reference Agencies will get an update to remove the CCJ, but it is worth checking this has happened by accessing your credit reports to check.
What is a Satisfied CCJ?
This is a CCJ that has been paid in full after 30 days.
Should Ignore a CCJ?
Even if you disagree with it, do not ignore it as it can then lead to more court action.
How to avoid getting a CCJ?
Maintain payment on time every month, use direct debits so payments are not missed. Keep tabs on your credit history via on-line credit report access from Experian, Equifax and TransUnion.
If you are at risk of falling behind with payment speak to your lender straight away, normally they can assist with revised payment plans. Alternatively seek independent support from Citizens Advice or Stepchange.
If you are moving house use postal redirects for a period 3-6 months to ensure you don’t miss any final bills sent to your previous address.
What do I do if I don’t recognise a CCJ?
You can ask the court to set aside the CCJ by completing form N244. It can take up to 4 weeks but is worth it if you have a genuine reason and can get one removed.
What should I do if I cannot afford to pay my CCJ?
It is strongly advised to put a payment plan in place and stick to it, just not paying a CCJ will lead bailiffs coming to your home, money deducted from your salary or even a charge on your property.
Avoid Scams from Credit Repair companies
According to Citizens Advice Bureau you should avoid credit report companies who promise to help you remove CCJ’s for a fee or other types of debt records.