CCJ Loans

Getting a loan becomes harder once you have been issued with a CCJ.

There are CCJ loan companies that can lend money to people with CCJs but they charge a higher interest rate than normal loan companies. Lenders who will accept people who have a CCJ are sometimes called sub-prime lenders.

Credit unions can also help people with who have had bad credit experiences in the past.

How is a CCJ issued?

A pawnbroker may be the right option for you, if you have bad credit and you have personal items that you don't mind using as security for a few months, this could be a good option for you.

Before a CCJ can be issued the creditor needs to request a court appearance. The debtor would then be sent a court form confirming how much is owed and the date of the court appearance. At this stage the debtor has several options.

Pay the debt – If the debt is paid in full at this stage then no court appearance will be required and no CCJ will be issued.

• Set up a repayment plan – Confirm how much can be repaid each month, complete the court form and a reasonable arrangement will be made. A CCJ will still be issued.
• Dispute the debt – If the debt is not the correct amount it can be disputed. Complete the court form. The court will then decide who is correct. If the original amount is judged to be correct a CCJ will be issued.

If a court appearance is required the court will assess all the details and either dismiss the case or issue a county court judgement in which case the debtor needs to repay the money under the terms the court lays down.

What happens if I don't pay a CCJ

When issuing a CCJ the court will look at your financial situation and set a repayment that they believe is reasonable. If you do not meet these repayments, the creditor can return to court to enforce the judgement. This can lead to further charges and action, and could result in bailiffs visiting your house.

The CCJ Register

The CCJ register is also know as the Register of Judgements. Details of a CCJ will be held on the register for a period of 6 years. Credit reference agencies will look at the CCJ register; this will have a negative effect on your credit file.

• The following information is held on the register:
• The name and address of the debtor
• The court details
• The case number
• The date and amount of the county court judgement

How to get off the CCJ Register

Personal details will remain on the CCJ register for a period of 6 years, starting the date that the CCJ is issued by the court. At the end of the 6 year period details will be removed, but the previous existence of a CCJ can still have a negative effect on the credit score reported by the main credit reference agencies.

How to remove a CCJ from your credit file

Once the CCJ has been repaid in full the debtor can write to the finance company and ask them to confirm in writing that the debt has been repaid. This confirmation can then be presented to the credit reference agencies who can then update their records. It normally takes a credit reference agency 1 month to update their records.

See all CCJ Loans