CCJs To Get Reform

9th February 2018.

The Government has embarked on an ambitious reform programme across the courts and tribunals in England and Wales. As a result, all cases that are brought to court will utilise the right knowledge and tools, and get creditors back what they are owed.

Among other things, this new programme will provide all creditors with a basic legal education and will result in a single online platform for managing cases across the justice system. This reform was first proposed back in December 2016, and was seen as a way to approach recent criticism aimed at the way cases were handled. Debtors claimed their credit rating shouldn’t be affected if they weren’t aware of the Judgment, and some have even accused creditors of deliberately aiding this obliviousness. This reform will concentrate on ways to protect consumers, and business owners better, as well as creditor and debtors.

Here at the Credit Protection Association, our litigation team deals with a thankfully low number of County Court Judgments (CCJ). In the rare case that a debtor does not respond to our CPA letters, and has ignored all the communication from our member, a Judgment will be made against them. We make it clear to our member that this is the worst-case scenario, and we send an polite and informative letter telling the debtor all that is expected of them and how they can proceed. We understand that not all financial institutions are ethical, and we hope this new proposal will dispel those who hurt the industry.

Since last year’s announcement, the Ministry of Justice has gathered a wide range of stakeholders from a range of departments to look at ways to protect consumers better, such as keeping their credit rating from getting damaged.

A balance needs to be reached between respecting the legitimate right of the business or individual to pursue the claim, and the debtor’s right to defend whether it is owed.

The new legislation will put creditors under the spotlight, with claims dismissed if debtors are not adequately informed of the Judgment before arriving in court. This will be a significant shift in the way the system currently handles claims, where not receiving the claim is not currently a admissible defence.

CCJs are a hindrance to creditors and to debtors. While some use the courts to prove the money is not owed at all, some just use it as a delay tactic, in the hopes that the money will be forgotten in the long run. Either way, they are an important aspect of the financial industry and deserve to be processed accurately and fairly.

Here at the Credit Protection Association, we put as much effort into getting the debt paid as we do ensuring it is rightly owed. We agree that reform is necessary if the stigma around debt collection is to be minimised and debt piles are to be diminished, it’s not helping anyone to see Judgment claims end up in the recycling bin.

Do you need a debt recovered? Do you have questions about County Court Judgments? Get in contact with CPA with the details below!