Over 270,000 people in England, Wales, and Northern Ireland have received letters regarding county court judgements (CCJs), a BBC expert has warned. Ignoring these letters could lead to court action and long-term damage to credit scores.
What is a CCJ?
A County Court Judgement is a court order issued when someone fails to pay a debt, and the creditor takes enforcement action. Financial expert Laura Pomfret explained on BBC Morning Live that these letters can come from councils, companies, landlords, or individuals. If unpaid, the CCJ can appear on credit reports for six years, impacting mortgage approvals, rental applications, and even mobile phone contracts.
Rising Numbers
In the first quarter of this year, over 270,000 new CCJs were registered, a 17.5% increase from the previous year. Pomfret noted that many are linked to energy bill debt, with Ofgem reporting total debt at £4.5 billion and Energy UK estimating it at £5.5 billion. Additionally, credit card transactions rose 6% in February compared to the previous year, while debit transactions only increased by 1%, indicating that people are relying on credit for basic expenses.
What to Do If You Receive a CCJ
Pomfret advised not to panic. A CCJ is a formal document asking for payment, with a deadline and instructions. Options include:
- Pay the debt: If paid within one month, the CCJ can be removed from your credit file. After that, it remains but shows as settled.
- Vary the terms: You can ask the court to change the payment terms, such as paying in instalments.
- Breathing Space: In England and Wales, this scheme (formerly the Debt Respite Scheme) gives temporary protection from creditors, allowing time to plan repayment or seek debt advice.
- Set aside the CCJ: If you believe there is an error, you can apply to have the judgment cancelled. Valid reasons include not owing the money or not receiving the original claim form. Evidence is required, and fees may apply.
Important Links
For steps and forms to vary or cancel a CCJ in England, Wales, and Northern Ireland, visit the official government website. For Scotland, different rules apply, including a moratorium (breathing space) from creditors. More information is available through the provided links.
