CCJs – the important info
If the court rules you’re liable for the amount owed, they’ll issue a County Court Judgment (CCJ) and you’ll need to make fixed repayments until the debt is cleared. You can have more than one CCJ at the same time - a record of each one will show on your credit file for six years after the date it was issued.
CCJs can be taken out against you if you owe money to creditors and haven’t kept up with the agreed repayments. This usually happens when other attempts to recover the debt have failed.
If your creditor goes down this route and the court decides you’re liable for the amount owed, a CCJ will be filed against you. It will show the amount you have to repay and the deadline to pay it back.
How to check if you have a County Court Judgment (CCJ)
Firstly, you’ll receive a County Court Claim Form. This’ll include details of the original debt along with how and who you need to pay, when you need to pay them and any court fees. At this point, you still don’t have a CCJ against your name. But if you don’t respond to this notice within 14 days, you’ll be issued with one.
There are no limits to how many CCJs can be taken out against you at any one time. If you default on repayments to more than one creditor, a record of each will be shown on your credit file for six years after the date they were issued. This could have a serious impact on your credit score and your chances of getting credit.
Can you check a CCJ online?
You can check your credit report online for free using one of the credit reference agencies. Any CCJ details will be visible to you and any companies that access your report.
You can also see your credit report online through the Registry Trust using these details:
- Names
- Addresses
- Court reference numbers
- The date of the judgment
- Whether the CCJ is marked as ‘satisfied’
Just so you’re aware, there’s a charge for every Registry Trust search.
How do you find out what a CCJ is for?
It’s unusual, but not out of the ordinary, for a CCJ to be listed on your credit file with no details about who it’s from and why it’s there. Though you may have to dig a little deeper into your file to find the information you’re looking for.
If you’ve recently changed address, you may not have realised that the lender and the court will have tried to contact you about this.
If you’re still struggling to find the necessary info about the CCJ, it’s best to call the court directly. They’ll be able to tell you where it’s from, how much is owed and can provide information on possible next steps if you wish to challenge the CCJ.
How a CCJ affects your credit record
A CCJ is evidence you’ve not been able to pay a debt, or you’ve refused to pay it. This could have a negative impact on your credit record for six years from the date of the judgment.
Having a CCJ on your credit file will affect your ability to get credit. But its impact could lessen over time, especially if you handle your credit well and make repayments on time.
Who will see your CCJ?
A record of your CCJ is held by the Registry Trust and is part of the public information on your credit report. This means anyone who does a credit search against your name will be able to see it, including credit referencing agencies, banks, lenders, utility companies, landlords and potential employers.
Can you remove a CCJ from your credit record?
Any CCJs on your credit file will automatically be removed after six years. But, you can also apply to have them taken off if they’re cleared in full within one month of being issued. If you pay it off in full any time after that, you can apply to have it marked as ‘satisfied’ on your report.
How to respond to the CCJ claim
If you get a CCJ, you’ll need to respond by the date highlighted in the letter to avoid further action. There are a couple of ways you can do this:
- Pay the full amount
- Defend the claim (if you’ve already paid and don’t think you owe any money)
If you need more time to defend the claim, you can ask for a 14-day extension to respond. You’ll just need to fill in the acknowledgement of service form in the response pack and send it to the court address on the claim form.
Do CCJs have a deadline?
The deadline for responding to the County Court Claim Form will be highlighted on the notice and is usually 14 days from the date it was issued. If you don’t respond by the deadline, you’ll automatically be issued with a CCJ that’ll affect your ability to get credit for the next six years.
To avoid getting issued with a CCJ, you’ll need to pay off the debt in full within 28 days of it being issued.
What happens if you ignore a CCJ?
The court will still issue the judgment, but they won't be able to take your circumstances into account. For example, they could order you to pay back the debt all in one go when it would be impossible for you to do so.
What if you can’t keep to the CCJ terms?
Your creditor can apply to the court to have the debt enforced in one of the following ways:
- Bailiffs – If the court gives permission for a bailiff to collect the debt, you could be visited at home or any business address by a representative. Their job is to collect money or seize any belongings which could be sold to repay the debt. If this happens, you may be able to apply to the court to have the warrant suspended – as long as you agree to repay the money at an affordable rate.
- Attachment of Earnings Order – The money owed can be taken directly from your wages. For this to happen, an Attachment of Earnings Order would need to be sent to your employer.
- Charging Order – If you own a property (mortgaged or owned outright), a charging order can be secured against it. This means you could lose your property if you don’t repay your debt.
What happens when you pay off a CCJ?
If you pay off a CCJ in full within one month, you can write to the court to have the judgment removed from the court’s registry. Then, the credit agencies you have credit with will be notified and the CCJ will be removed from your credit record.
Just so you know, this process can take up to four weeks from the moment the credit agencies are notified the debt has been settled.
If you repay the debt owed in the CCJ after one month, you can write to the court to have the judgment marked as ‘satisfied’. This’ll show you’ve made your repayment in full. If any credit agencies do background checks, it’ll show you’ve repaid the debt. This reduces the impact on your credit score compared with having payments still ‘outstanding’.
Just be aware that the CCJ will remain on your file for six years after the last payment has been made.
How to avoid receiving a CCJ
The best way is to only apply for credit you can afford to repay. If you’ve already received a County Court Claim Form, you can avoid getting a CCJ by paying off the debt in full within 14 days.
Register of Judgments, Orders and Fines
If a CCJ is issued against you, it becomes part of the public information held on your credit report and the details will be added to the CCJ register. This is a public database officially known as the Register of Judgments, Orders and Fines.
Any record of your CCJ will automatically be removed after six years, whether you’ve paid it off or not. If you still haven’t repaid it after six years, your creditor can apply to the court to have the CCJ extended.
You can check your CCJ details are correct by viewing your credit report with one of the credit reference agencies. You can also use the Registry Trust website. It’s a good idea to do this before applying for credit.
Learn more about getting credit after a CCJ with our guide on the next steps.