Discussion
z4chris99 said:
my advice is dont get one. it will f
k with your credit and possibly job for the foreseeable future.
This, ruination of credit score.k with your credit and possibly job for the foreseeable future. One of our customers got one and we had credit alerts all over the place being sent to us via our credit check service. They basically went from a crediting rating of 85 to 3 overnight!
ETA: They are no longer a customer of ours now, funnily enough due to payment problems. Thankfully we got our money but it took threat of another CCJ to get it.
Edited by Sixpackpert on Monday 24th June 20:25
z4chris99 said:
my advice is dont get one. it will fk with your credit and possibly job for the foreseeable future.
That's fortunate. He hasn't got one.k with your credit and possibly job for the foreseeable future. Three currently with more on the way I expect.
It's slightly more complicated than that - I'd rather not expand fully on a public forum, but if anyone in the biz could spare a few minutes on a phone call or email I'd be incredibly grateful.
The "biz" as you say it doesn't really exist, i have a masters in finance and work in PE, but will give the same answer as a dustbin man.
PHer phone sales man: you wont get a contract phone
PHer BMW dealer: you cant get finance on your new 3 series
PHer Mortgage broker: your credit score is st we wont lend to you
PHer Recruitment agent: having a CCJ will prevent you from some finance roles.
Pher lettings agent: you don't pass a credit check, do you have someone who will back you?
Pher business partner: i don't want you to be a director of our company as it will look bad / damage the business and credit availbility
PHer supermarket: you cant get a store card because your credit is shot
PHer Bank: you cant get an overdraft, or a credit card
PHer potential girlfriend: your poor, homeless and smelly you ain't getting any nooky.
in short, getting anything where another person or company has to trust you with money will be impossible.
PHer phone sales man: you wont get a contract phone
PHer BMW dealer: you cant get finance on your new 3 series
PHer Mortgage broker: your credit score is s
t we wont lend to youPHer Recruitment agent: having a CCJ will prevent you from some finance roles.
Pher lettings agent: you don't pass a credit check, do you have someone who will back you?
Pher business partner: i don't want you to be a director of our company as it will look bad / damage the business and credit availbility
PHer supermarket: you cant get a store card because your credit is shot
PHer Bank: you cant get an overdraft, or a credit card
PHer potential girlfriend: your poor, homeless and smelly you ain't getting any nooky.
in short, getting anything where another person or company has to trust you with money will be impossible.
The Moose said:
Is there anyone Finance-y here that knows about CCJs and what the outcomes of these may be?
Would be great to have a quick telephone call if someone could spare 10 minutes on behalf of a friend of mine who's currently just burring their head in the sand.
Cheers
The Moose
I think you need to explain the context of what further information you need. I assume you understand how they can affect you so what else do you want to know?Would be great to have a quick telephone call if someone could spare 10 minutes on behalf of a friend of mine who's currently just burring their head in the sand.
Cheers
The Moose
I understand how they affect future borrowings/credit - I have more than 2 brain cells to rub together 
What I'm more concerned about is how there'll affect existing mortgages (not in arrears) etc.
The situation is complex in many ways. But it involves properties etc as well as unsecured debts.
What I'm more concerned about is how there'll affect existing mortgages (not in arrears) etc.
The situation is complex in many ways. But it involves properties etc as well as unsecured debts.
The immediate immplications are not massive unless they have a huge amount of unsecured borrowing. Generally speaking most lenders run monthly batches monitoring customers behaviour. A new CCJ may start to make them twitchy and this could results in a reduction of limits to credit cards & overdrafts. Mortgages and loans are very unlikely to be effected, as few lenders try and call them in.
However another point to consider. Depending on what is taking them down the CCJ route could also have very similar outcomes as the CCJ. For example if they are missing payments on any kind of structured finance agreements - this data is also reported against you're credit file. If you have 2 or 3 accounts each with 3 missed payments that will have very adverse effects on credit scores and ability to get credit, and will also see a possible reduction in overdraft/credit card limits.
Tell them not to bury their head - but actually talk to people, they could already be seriously damaging their credit profile - and in the current market there is no longer - near prime/almost sub prime/subprime and very sub prime. Just prime and then specialist lenders filling in the sub prime gap.
Hope that helps a little.
However another point to consider. Depending on what is taking them down the CCJ route could also have very similar outcomes as the CCJ. For example if they are missing payments on any kind of structured finance agreements - this data is also reported against you're credit file. If you have 2 or 3 accounts each with 3 missed payments that will have very adverse effects on credit scores and ability to get credit, and will also see a possible reduction in overdraft/credit card limits.
Tell them not to bury their head - but actually talk to people, they could already be seriously damaging their credit profile - and in the current market there is no longer - near prime/almost sub prime/subprime and very sub prime. Just prime and then specialist lenders filling in the sub prime gap.
Hope that helps a little.
The Moose said:
Future lending won't be an issue. It's more to do with whether these (and future CCJs) will turn into charges on the properties (that are in neg eq anyway) and whether repossession will be on the cards.
The judgment debts can be charged to properties regardless of equity but enforcing those charges by way of an application for orders for sale would be pointless, judgment creditors will normally obtain valuations and balances from higher ranking chargeholders before deciding whether or not to try to enforce. As for a existing secured ender trying to enforce a mortgage because of a new judgment - that's unlikely to be a breach of a mortgage condition, or even if it was action is unlikely as long as the loans are being repaid.
The Moose said:
Future lending won't be an issue. It's more to do with whether these (and future CCJs) will turn into charges on the properties (that are in neg eq anyway) and whether repossession will be on the cards.
Unless one of the creditors is the mortgage lender, repossession shouldn't be a concern. Even if it was the mortgage lender, if you are in negative equity, they'd be much more open to organising a payment plan; otherwise if they took the property back they would be looking at guaranteed huge losses and complete pain in the arse for them, they'd rather keep taking your money for as long as you keep paying.An creditor of an unsecured debt can obtain a charge over the property but most would see thats it's a waste of time and money via a mortgage statement and a recent valuation to evidence the negative equity.
The best advice is to stay in constant contact with any creditor. Contrary to most peoples thoughts, the lenders aren't big bad ogres, they just want their money and most will be open to a realistic payment plan.
I'll be frank, CCJ's are generally the last port of call for a lender who cannot chase a debt by any other means, they are very rarely taken any further.
Having one pretty much stops the holder from getting any sort of mainstream credit until it's either cleared (and even then it's not exactly a great thing) or it falls off their credit file (6 years). We know this so we go through the hoops, the court slaps them down - the debtors never turns up to court, oddly when they do they often avoid getting one, and then we pass the debt onto a 3rd party agency who'll write a scary letter one month, then a nice one offering to help, then a scary one forever more.
Some you never hear from again, they get added to the 'bad debt' portion of the balance sheet and we move on, but quite a few will turn up out of the blue 2/3 years later in a mild panic about it. Often whatever crisis befell them years before has now long passed, their life is back on track and they want a new car or to move house and they've forgotten about the HP for the long forgotten musthave electrical item them couldn't live without 5 years ago and call up, quite often shouting and screaming that we lodged a CCJ "without telling me" despite the huge amount of hoops you have to jump through to lodge one, including multiple attempts to contact them and a letter from the court by recorded mail they signed for and demand we remove it, THEN they pay it.
Having one pretty much stops the holder from getting any sort of mainstream credit until it's either cleared (and even then it's not exactly a great thing) or it falls off their credit file (6 years). We know this so we go through the hoops, the court slaps them down - the debtors never turns up to court, oddly when they do they often avoid getting one, and then we pass the debt onto a 3rd party agency who'll write a scary letter one month, then a nice one offering to help, then a scary one forever more.
Some you never hear from again, they get added to the 'bad debt' portion of the balance sheet and we move on, but quite a few will turn up out of the blue 2/3 years later in a mild panic about it. Often whatever crisis befell them years before has now long passed, their life is back on track and they want a new car or to move house and they've forgotten about the HP for the long forgotten musthave electrical item them couldn't live without 5 years ago and call up, quite often shouting and screaming that we lodged a CCJ "without telling me" despite the huge amount of hoops you have to jump through to lodge one, including multiple attempts to contact them and a letter from the court by recorded mail they signed for and demand we remove it, THEN they pay it.
P-Jay said:
I'll be frank, CCJ's are generally the last port of call for a lender who cannot chase a debt by any other means, they are very rarely taken any further.
Having one pretty much stops the holder from getting any sort of mainstream credit until it's either cleared (and even then it's not exactly a great thing) or it falls off their credit file (6 years).
What if I wait 6 years. Does it just drop off. Then can I start rebuilding my credit score all over again?Having one pretty much stops the holder from getting any sort of mainstream credit until it's either cleared (and even then it's not exactly a great thing) or it falls off their credit file (6 years).
Sarnie said:
ATM said:
What if I wait 6 years. Does it just drop off. Then can I start rebuilding my credit score all over again?
Yes.Although to be fair, the more historic the adverse becomes the less impact it is having on your score or ability to obtain credit.
How can I check?
I could just apply for credit and see what happens but I thought a negative outcome for new credit had a negative impact on my credit score.
ATM said:
What if I wait 6 years. Does it just drop off. Then can I start rebuilding my credit score all over again?
Yes. Managed to get 2 myself 20+ years ago. Got totally stuffed running my own business when I was 20 and was too stubborn to ask for help. 5 years (6? that must have changed) and it had totally dropped off my file.The key thing to rehabilitating your credit is to start before you get the CCJ - eg a new credit card that you run absolutely perfectly, a subscription to a catalogue (that used to be an old trick), contract phone, and literally start showing that you are worthy of credit. Then, when the CCJ drops off in 5 years you are already showing a good risk to potential lenders.
ATM said:
Ok thanks.
How can I check?
I could just apply for credit and see what happens but I thought a negative outcome for new credit had a negative impact on my credit score.
How can you check what?How can I check?
I could just apply for credit and see what happens but I thought a negative outcome for new credit had a negative impact on my credit score.
The CCJ will be detailed on your credit report but whether you will be accepted for finance will be dependant on that lenders 'score card' and whether it's acceptable to them. The best thing you can do is to keep everything else on your file perfectly up to date to isolate the CCJ as a one off.
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