CCJ Finding Car Finance the Facts

CCJ stands for County Court Judgement. It is a notice issued by a county court against an individual if they fail to pay outstanding monies that they owe to a lender, and is a relatively simple way for creditors to claim back money they are entitled to.

The role of the court

The court decides if the debt is payable and will issue a CCJ if they believe it is enforceable. The CCJ will set out details of how the debt should be repaid, often taking into account individual circumstances/income. The repayment terms are decided on by the court based on information provided by the individual on an Admission Form that the court will send out when they notify the person the CCJ is in progress.

The Admission Form is also an individual’s chance to put their side of the story across before the CCJ is decided upon.

CCJ: The Response

When notified of intent to register a CCJ, an individual can do one of five possible things:

·       Pay the outstanding amount in full

·       Request to pay the outstanding debt in instalments, or defer the payment

·       Dispute the amount being claimed for by the creditor

·       Dispute the claim entirely

·       Register a claim against the creditor

No matter what outcome, the intent to pursue a CCJ should not be ignored.

In court

The hearing is held in private - the individual does not have to attend unless the claim is being disputed. The court considers evidence in the individual’s absence. If the court decides the claim should stand, they will issue a CCJ. If the individual requested to pay the outstanding debt in instalments, the court will set repayments based on information provided, such as income and expenditure.

If the CCJ isn’t paid after the hearing, the creditor can return to court, which will incur more costs and could even result in the involvement of bailiffs to recoup monies owed.

Credit Score

The CCJ will be registered on an individual’s credit file for up to 6 years, affecting an individual’s ability to gain future credit, such as a mortgage, car finance and/or loans.