How You Can Remove A CCJ And Repair Your Credit History
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
How to Remove a CCJ and Improve Your Credit History
Overview
When individuals in England, Wales, or Scotland are unable to pay their creditors, a civil case may be initiated in the County Court or Sheriff Court, respectively. This can lead to a County Court Judgment (CCJ) or a decree in Scotland, which remains until the debt is settled.
While having a CCJ doesn’t completely eliminate your ability to obtain credit, lenders may view it as an indicator of past financial difficulties. Hence, removing a CCJ is crucial.
Why CCJs Occur
Many CCJs result from an undefended court summons. Often, defendants may be unaware of the necessary steps to address the issue, leading to a judgment by default. The Central Registry then forwards this information to credit agencies. Paying off the debt doesn't automatically remove the CCJ from your record unless specific actions are taken.
Removing a CCJ
To have a CCJ removed, it must either be set aside or reversed. If you settle the debt within one month of the judgment, the courts will automatically remove it from the Register of County Court Judgments.
Here's what you need:
- Plaintiff's Name: Typically, the creditor's name.
- Case Number: Essential for processing your application.
- Original Summons: Required document.
- Court Name: Relevant court details.
Steps to Remove a CCJ
1. Obtain Your Credit File: Request a copy from credit agencies like Experian or Equifax, either online or in writing.
2. Gather CCJ Information: Collect all details related to the CCJ from your credit file.
3. Contact the Court: Write to the court for all CCJ details related to your case.
Addressing Unfair or Incorrect CCJs
If you believe a CCJ was issued unfairly, you can request an N244 form from the County Court at no cost. This form allows you to explain why the CCJ should be set aside. Common reasons include:
- Lack of 28 days' notice to pay the debt.
- Incorrect postal address used.
- Non-receipt of the summons.
- CCJ remains on file despite settling arrears within 28 days.
- Insufficient time (less than 21 days) to respond due to a late summons.
- Identity theft resulting in a CCJ.
- Out-of-court settlements.
- Failure to receive notification of the judgment.
- Inability to attend court due to circumstances.
- Joint summons issues with only one party notified.
Impact on Loans and Mortgages
Even with one or two CCJs, securing a loan or mortgage is possible. Lenders have adapted their criteria, offering specialized products like no credit check loans and CCJ remortgages. These options accommodate up to two recent CCJs, though they may come with higher interest rates.
---
In today’s financial landscape, understanding how to appropriately address and potentially remove a CCJ can significantly impact your credit profile and future borrowing potential.
You can find the original non-AI version of this article here: How You Can Remove A CCJ And Repair Your Credit History.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.