County Court Judgments have an affect on your credit file. Read on to find out what impact this may have for you...
What is the register of judgments, orders and fines?
This is a public register that holds details of the debtor’s name, address, the date of judgment and details of the Court where it was issued. The register is accessible to everyone but a fee will be required.
What is a County Court Judgment?
A County Court Judgment (CCJ) is a type of court order in England, Wales and Northern Ireland that can be issued against you if you fail to repay your debts. Usually, a creditor will take court action against you if you have failed to engage with them and make payments towards your outstanding debt.
County Court Judgments appear on the Register of Judgments, Order and Fines for 6 years unless they have been set aside or the claim discontonued. If you pay off the outstanding balance before the CCJ has been registered, this will not be entered on your credit file.
Will a CCJ show on my credit file?
The Credit Reference Agencies report judgments on credit files. This means if you have a judgment obtained against you, it will appear on your credit file for 6 years, even if you repay the outstanding balance of the debt during this time.
Once 6 years have passed, the judgment will no longer appear on your credit file, even if you have not repaid the full balance by this time.
Having a CCJ on your report will significantly impact your credit score. If you apply for credit, a mortgage or even a bank account, your credit report will be checked by lenders, and a CCJ can negatively affect your chances of being accepted.
It’s worth noting if you are looking to rent a property or start a new job, employers and letting agents may also check your credit report.
Who are the Registry Trust?
This is the official registrar for the Registry of Judgments, Order and Fines. They are responsible for providing court judgment information to the Credit Reference Agencies.
What happens to my credit file if I pay the CCJ within a month?
If you repay your debt within a month of the CCJ being registered, you can apply to have the CCJ removed from your credit file. You will need to apply for a ‘certificate of satisfaction/cancellation’ from the County Court that issued the judgment, providing them with proof of payment. You can do this by completing a N443 form. You will be required to pay a £14 court fee to do this, unless you are on a low income and eligible to obtain this for free – you can find out if you’ll be eligible here.
Once the court has evidence you’ve paid the amount owed within the first month the CCJ was registered, they’ll contact the Registry Trust to remove the judgment from the public register.
What happens when I repay my CCJ after a month?
Once you have repaid your CCJ in full, you will need to contact the original County Court who issued your CCJ, your creditor cannot do this for you. You’ll need your claim number, which you can find on the letter you would have received from your creditor confirming your balance has been repaid in full.
If you don’t know the name of the original court who issued your CCJ, you can contact Northampton County Court Business Centre by telephone or writing to them:
0300 123 1056
St Katharine's House
21-27 St Katharine's Street
The court will then send this information to Registry Trust, who will update the Register of Judgments, Order and Fines to show your CCJ as satisfied. If you have partially settled your balance, the register will remain unsatisfied.
The Registry Trust will then update the credit reference agencies. Your creditor will advise you that it can take up to 6 weeks for your credit file to show your CCJ is satisfied or partially satisfied if you settled your balance with a discount.
If you need proof of this before your credit report has been updated, you can apply for a ‘certificate of satisfaction/cancellation’ from the County Court that issued the judgment, providing them with proof of payment. You can do this by completing a N443 form. You will be required to pay a £14 court fee to do this, unless you are on a low income and eligible to obtain this for free – you can find out if you’ll be eligible here.
What if I don’t pay the balance after receiving a CCJ?
It’s important to repay the outstanding balance of your debt if you have a CCJ, to avoid further enforcement of the debt such as:
- Attachment of earnings – this is where the money you owe would come directly from your wages
- Have High Court Enforcement officers or bailiffs visit your home – they could look for goods in your home to recover the debt owed
- A Charging Order against your property - If a debt is secured against your property, your creditor will be entitled to seek payment from the proceeds of the sale
If you have a Charging Order against your property, this will not be recorded separately on your credit file. However, lenders may still be able to find out if you have a charge against your property through the Land Registry.
The Charging Order will remain on your property until the debt has been repaid in full. Once you have done this, your creditor/solicitors managing your account will apply to the Land Registry for the charge to be removed.
What if a CCJ has been registered incorrectly on my credit file?
If you believe a CCJ has been incorrectly obtained against you and registered on your credit file, you may be able to apply to have it cancelled by completing an N244 form, paying a fee and returning the form to the court that issued the CCJ.
If you are successful and the court agrees to set aside your CCJ, the CCJ will be removed from your credit report. The default however may still appear on your credit file for 6 years from the date it was registered, and the outstanding balance will still be due.
You can call us on 0344 556 0263 between 8am – 8pm Monday – Friday and 9am-1.30pm Saturday. Alternatively, you can reach out to us online, by filling out a contact us form or talking to us through live chat.
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