If you are facing a "County Court Judgment" (or CCJ for short), it's crucial to understand the meaning and function of a CCJ, whether you're actively involved in a legal dispute or simply seeking to learn more about the legal system.
If you respond promptly and ensure the accuracy of your credit report (or credit profile), you can positively enhance how lenders and companies you work with behave towards you.
In this blog, we'll delve into the basics of a County Court Judgment, its implications, your credit score, and what you can do if you receive one.
A County Court Judgment (CCJ) is a court order issued in the UK by the County Court. It is a legally binding decision made against an individual or a business that has failed to repay a debt they owe. CCJs are typically issued when a creditor takes legal action against a debtor for the outstanding amount.
You may be able to settle the financial dispute in a small claims court where a claim can be made up to the value of £10,000.
If you receive a CCJ, it is essential to act promptly:
Pay within one month to have the judgment record marked as 'satisfied' on the register. Although it will remain on the register for six years, anyone searching will see you have paid. Inform the court of your payment by writing to them. Enclose proof of payment from the creditor or business that you owe money to.
You might have a county court judgment (CCJ) against you if you owe someone money and a court rules that you have to pay it back. Having a CCJ against you could affect your credit rating, making it difficult to borrow or get credit from a bank, lender, or shop.
The CCJ will appear on your company credit report (usually within 24-48 hours). A company uses this information to determine whether to lend you money.
When a CCJ has been set aside, it doesn't mean it's been satisfied; it means the judgment has been cancelled altogether or court action has stopped, which means it no longer exists.
In the UK business economy, late payments are still a common issue. To avoid this, it is essential to thoroughly research potential customers before doing business with them.
If you do this, any negative County Court Judgement (CCJ) information on their record will appear on a company credit report. Another option is to access CCJ information for a fee on the Registry Trust website.
When a CCJ is filed against you, it is added to the Register of Judgments, Orders, and Fines database within a month.
The Registry Trust manages the register containing details of all adverse County Court Judgments (CCJs) against companies in England and Wales. Additionally, this company shares data with credit checking companies.
A County Court Judgment (CCJ) lasts on the Records of judgments and your credit file for 6 years. However, there are some exceptions which we will outline below. Within these 6 years, if you apply for credit, your lender will see the CCJ on your credit file.
A County Court Judgment will affect the score as soon as it is filed, but if set aside within 30 days, this will not affect the score. If the debt remains understanding, this will also impact the score until it is settled.
If the CCJ is reflected on one of our UK monitoring reports, it means it has been filed with the court, and if a CCJ monitoring notice comes through, but there is no CCJ in the report, then it was issued but settled immediately.
If you are a large business, the impact on your credit report will be minimal compared to the value of your balance sheet.
While a CCJ can have severe consequences, proactive steps can help mitigate its impact on a business:
If you pay the debt in full within 1 month of the date of the CCJ, you can apply to the court to remove your entry in the Register. You'll need to get a certificate from the court to prove you've paid off the debt.
If your entry is removed from the Register, CoCredo will be told, and details of your CCJ will be removed from our credit reports. You might be able to get credit again once the CCJ has been removed.
A County Court Judgment (CCJ) can profoundly impact a business, affecting its reputation, creditworthiness, relationships with stakeholders, and access to finance. Business owners must take immediate action if they receive a CCJ, working to resolve the debt issue and implement measures to mitigate the long-term consequences.
By maintaining transparent communication and seeking professional advice, businesses can navigate a CCJ's challenges and focus on regaining financial stability and credibility.
Don't let recovering unpaid customer debt be a burden on your time or budget. CoCredo has relationships with partners who offer debt recovery solutions, and we would be happy to introduce you.
Call us on 01494 790600 to find out more.