How Long Does a CCJ Last on Your Credit Rating?

Being issued a County Court Judgement can be difficult and stressful, with many businesses and individuals suffering the consequences of these credit implications. However, being given a CCJ does not mean all is bad. 

The following article contains information on how long a CCJ lasts on your credit rating and how you can take action to reduce the impact of a CCJ on your credit score.

What is a County Court Judgment or CCJ?

A County Court Judgement of ‘CCJ’ is a legal court order that a creditor has taken against you for unpaid funds. A creditor can be anybody who has extended their services or products to you and has not received the appropriate funds in return.  

When a CCJ is issued, it is added to the Register of Judgments, Orders, and Fines database. This database is managed by the Registry Trust, which is responsible for delegating the relevant information to the appropriate credit checking company.

If you received a notice that a CCJ has been issued, it is crucial to respond within 14 days of receiving the letter. If you have responded to the court within 14 days, it is possible that the creditor and yourself can reach an agreement without involving legal action. If you want more information on what a CCJ is and how it may impact your credit score, please see our previous blog outlining all you need to know.

Importance of Avoiding Acquiring a CCJ

A CCJ can have many implications for individuals and businesses if acquired. One example is increased difficulty in taking out further credit, such as loans for up to six years. This will likely hinder your business and make it increasingly complex to progress the organisation further. 

It can also affect the company’s credit score and lead to further implications down the line. 

It may also considerably impact the business you can do with other companies. If a business notices a CCJ on your credit report, they may be discouraged from trading with you; this will therefore harm the business’s profits and cause a decrease in sales.

Can You Get a CCJ Removed?

CCJs are removed from the register and your credit file six years after they are issued. 

To be eligible for it to be eradicated from your file, the CCJ must be paid in full within one month of the issue date. If the CCJ is paid in full but was not fulfilled within one month, it will still be visible on your credit file but appear as ‘satisfied’. 

If you have been issued a CCJ and believe that it is a mistake, you can complete an application to have it set aside. Bear in mind; however, there must be a valid reason for doing so. 

Some examples of these reasons may include a breakdown in communication when the CCJ was issued, for example, the letter being sent to the wrong address, or you have proof that you have already paid the debt. It's crucial to act on the CCJ as soon as you are aware of it to have the best chance of winning your case. 

Having a CCJ set aside includes paying a court fee and attending a court hearing.

How to check if an individual has a CCJ?

CCJs are pretty common among individuals and businesses across the United Kingdom. It is predicted that 1 in 13 people living in the UK have an issued judgement; therefore, it’s worth checking if a company has a CCJ before purchasing with them. 

It’s possible to check whether individuals have a CCJ by using online services such as bankruptcy checks and credit checks. It’s also possible to check the CCJ Records via Eurocom CI.

CCJ and Credit Checks from Eurocom CI.

At Eurocom CI, we understand the importance of managing pre-employment and monetary checks such as Credit and Bankruptcy Checks for employers. We are highly experienced in providing a range of services for employment sectors throughout the United Kingdom.