County
Court Judgment or CCJ
A
CCJ is generally issued when someone has failed
to pay a credit agreement, money owed or debt
and a County. Court has ruled that the debt
owed has not been honoured due to late payments
or stopped payments. That unsatisfied debt will
be recorded on their credit file with a credit
bureau such as Experian and Equifax. This will
generally remain on their credit history for
up to six years. It will be indicated on their
file if the debt was satisfied or unsatisfied,
some lenders will insist that in order to take
out a further loan or mortgage that the debt
be satisfied before completion.
Generally
this black mark will mean that the person will
have to pay a higher interest rate as they are
now regarded as a higher risk to the lender
with a poor track record of paying off debt.
So this is not a desirable situation as normally
the more bad credit indicated by the number
of CCJs and the amount owed being satisfied
or unsatisfied will mean a higher rate they
will have to pay. And often the lender will
have a high early repayment charge which will
tie the borrower into the deal for a longer
time at a high interest rate.
If the debt is in joint names
but you where
not responsible for the debt but your partner
was then the loan is equal and several, meaning
the bad credit will be recorded on both names.
High
street lenders potentially may not cater for
this type of borrower as it is regarded as high
risk lending and specialist adverse lenders
will be used. Though as time goes by and the
borrower has shown a cleaner credit history
since the bad credit was recorded against them
they will be more willing to lend.
County
Court Judgments appeal
It
is possible to amend a judgment if there has
been a mistake, for example administration errors
on the lenders side. The client will have to
ask the lender to remove the mistake from the
credit file by contacting the County Court where
the judgment was originally registered. This
would normally take up to a month to amend.
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