03/01/2018
Investigating the abuse of CCJs by rogue companies (E, W)
Concerns that rogue companies are damaging consumers’ credit ratings by deliberately sending money claims to incorrect addresses so County Court Judgments (CCJs) are issued by default has resulted in a Ministry of Justice consultation seeking formal evidence of the scale of the problem and views on how best to protect individuals and businesses that may be affected.
Consumers may be unaware of the affect on their credit ratings, which may only come to light years later, when applications for mortgages or other loans are rejected.
Over the past four years, the number of CCJs issued has increased by 59% and more than one million were issued in 2016.
‘Default County Court Judgments: A consultation on ensuring the process works fairly, for both creditors and debtors’ is particularly aimed at those who have had experience of CCJs as claimants, defendants or as members of bodies representing the interests of either group.
It includes proposals to
- strike a CCJ from the register immediately once unknown debts are resolved and a judge agrees the consumer affected was unaware
- provide better protections for consumers who do not receive mail because it was sent to an old address
- introduce a government information campaign providing a central, trusted source to raise awareness and help people deal with unresolved debts
Responses will help the government decide whether any changes are needed to the current procedures for money claims issued in the County Court.
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