What is a County Court Judgment (CCJ)?
A county court judgment (CCJ) is a court order made in England and Wales stating that a person owes money to another person or organisation.
A CCJ can negatively affect your credit score and make it harder to get approved for loans, credit cards, and other types of finance.
In this guide, we explain what a CCJ is, how they work, and the impact receiving one could have on your creditworthiness.
What is the CCJ process?
Before starting court proceedings, a creditor will usually send a Letter of Claim. Some creditors, such as consumer credit lenders, may also need to issue a default notice.
You may have up to 30 days to respond from the date of the letter or notice. This document should tell you how much you owe and explain what could happen next if the money isn’t repaid.
If you receive a Letter of Claim, you might want to seek advice. Free, confidential financial advice is available from charities and organisations, including StepChange, MoneyHelper, Citizens Advice, and National Debtline.
There are several ways you can respond.
- Pay the money in full.
- Ask the creditor for a payment plan or a delayed repayment.
- Dispute the claim and/or the amount owed by filing a defence.
- Submit an acknowledgement of claim if you intend to dispute it but need more time to prepare your defence.
- Submit a counterclaim if you believe the creditor owes you money.
What is a CCJ?
If the debt is not resolved after a Letter of Claim, the creditor may issue a county court claim.
- If you do not respond to the court claim, the court may issue a CCJ against you.
- If you do respond and dispute the claim, the court will consider both sides and decide whether a CCJ should be issued.
CCJs apply in England and Wales. Scotland and Northern Ireland have different court systems and procedures.
What happens if you ignore a CCJ?
If someone ignores a CCJ, creditors can seek enforcement action such as:
- bailiffs
- attachment of earnings
- a charging order
- a third-party debt order
What if I can't afford to pay a CCJ?
If you can’t afford to pay a CCJ, you should contact your creditor. They may be willing to consider an alternative arrangement.
You can request changes to a CCJ payment plan by completing a N245 form. The court will decide whether to approve these changes.
How does a CCJ affect me?
Having a CCJ on your credit report is likely to harm your creditworthiness and could make it more difficult to get approved for certain financial products, including loans, credit cards, or a mortgage.
If you pay the CCJ in full within one calendar month of the judgment date and obtain a Certificate of Cancellation, you can have it removed from the Register of Judgments, Orders and Fines. However, even if this is the case, it’s important to note that any defaults that led to the CCJ will usually still be kept on your credit file until they expire - usually after six years.
How long does a CCJ stay on your credit report?
A CCJ will remain on your credit report for six years, even if you pay it off during this period. After that time, it will no longer appear on the public credit files used by most lenders, regardless of whether it has been paid.
Can I remove a CCJ from my credit report?
A CCJ could be removed from your credit file if:
- It’s been six years since the CCJ was issued (in which case, it should be removed automatically).
- You disputed the CCJ, and it was ‘set aside’ or cancelled by the courts.
How to find out if a CCJ has been made against you?
You can find out if a CCJ has been made against you by either:
- Checking your own credit report.
- Searching the Register of Judgments, Orders and Fines. Please be aware that a fee applies.
How to remove an entry in the Register of Judgments, Orders and Fines
A CCJ will be removed from the Register of Judgments, Orders and Fines six years after it was issued, even if you haven’t paid the full amount owed.
You may be able to apply to have a CCJ set aside if, for example, you do not owe the debt or you did not receive the claim paperwork. If the court sets the judgment aside, the CCJ will be removed from the Register.
Can I get a loan while I have a CCJ?
You may be able to apply for a loan with a CCJ, but it’s worth bearing in mind that you may find it significantly harder to get approved. You should think very, very carefully before you apply for a loan with a CCJ. You’ll need to be certain that you can afford to make your monthly repayments.
How to improve your credit score after a CCJ
A CCJ can seriously harm your creditworthiness, and rebuilding your credit score can be a slow process. Fortunately, there are a few things you can do.
- Make sure all your bills and any existing credit commitments are paid on time each month.
- Register to vote.
- Check your credit report for outdated and incorrect information.
- Keep credit applications to a minimum. If you do need to search for credit, using a credit broker could help you reduce the number of hard searches on your credit file.
- Have you got a credit card? Avoid using it to withdraw money from a cash machine, and be sure to stay within your credit limit. Your credit limit is the maximum amount of money you can borrow on your credit card.
Get free financial support
You can access free, impartial financial advice through the following charities and organisations:
Representative example: Amount of credit: £1000 for 12 months at £123.40 per month. Total amount repayable of £1,480.77 Interest: £480.77. Interest rate: 79.5% pa (fixed). 79.5% APR Representative. We’re a fully regulated and authorised credit broker and not a lender