CCJ - 5 years old and need some help! (2024)

lauravenue Posts: 25 Forumite

30 September 2015 at 4:19PM in

Hello,

I am new to the forum, and am here as I just cannot find anyone to help me or even offer some advice, and I thought this would be the best place to go to!

I have a CCJ on my credit report, from 5 years ago. It is for £150, and it form a very old job who paid me till the end of the week (seasonal worker) but then tried to get the money back from me (claiming they overpaid me). I only found out about this about a year or two ago, and didn't even understand what it meant. I am now looking at getting a mortgage, and I have realised that a CCJ is a bad thing (am 25 now, and have only heard the term because I have one, so had no idea what it meant until recently!)

I have been told that it will be removed from my report next November, 2016, when it becomes 6 years old, however I am wanting to try and get a mortgage before then. Not too much before then, but some time in 2016. I have a few accounts defaulted on my report but are all from the same year as this CCJ, so are all going to be 6 years old next year. My score is in the middle, satisfactory category, and I have been nothing but excellent with money (had no credit until getting a credit card last month, purely for improving credit score related purposes!) but I want to get some idea of what I should do.

The CCJ isn't for much money, and I have managed to find out that to dispute it costs £155, £5 more than I owe, so obviously that would be a silly option. I just want to know is paying it now worth it? Would it make my credit score better, would it make my credit report look better to lenders, and would it still be a yes if asked if I have a CCJ against my name? I had said no when getting credit before I knew about it, and none of the lenders came back saying you have a CCJ, it's a no, but granted I wasn't applying for a mortgage at the time!

I am so confused, and didn't realise how big a deal this was until fairly recently, as it was for so little amount of money and also was incorrectly claimed, and have just unfortunately found no one to help me!

Any information would be gratefully received!

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lauravenue Posts: 25 Forumite
30 September 2015 at 4:45PM

Also, I definitely think I have grounds to fight it as they had the wrong address on their system, I was told by a manager that I was to be paid until the end of the week as I was seasonal and the store was quiet, and I would have paid the minimal money if I'd have received the letter within 1 month and it would never appear on my report. But that costs the same as the value of it, I'm certain. Is it worth it?
Marktheshark Posts: 5,841 Forumite

30 September 2015 at 4:48PM

Paying it wont make any difference.
Head down until its six years and rent until then ?
I do Contracts, all day every day.

See Also
What is a CCJ and how does it impact me?Can a CCJ be enforced after 6 years? - Your Debt Expert Do you have to declare a CCJ after 6 years? - IVA Plan What are CCJs and How Do They Work?
National_Debtline Posts: 7,998 Organisation Representative

30 September 2015 at 4:51PM

Hi laura and welcome to the forum.
If you settle the CCJ now it will still show on your credit report until Nov 2016, albeit as "satisfied". If you seek credit e.g. a mortgage before then, potential lenders would see it and would take it into account when deciding whether to approve your application. What I can't do is to put a % or figure on the effect it would have on your chances of approval. The age of the CCJ and the fact it's been paid would help your chances, but it could still conceivably be the difference between a "Yes" and a "No". You could also add a "Notice of Correction" to your credit report to help explain that you only found about the CCJ long after it was granted, hence not paying it off immediately. You can read more about this in our fact sheet on credit referencing:
https://www.nationaldebtline.org/EW/factsheets/Pages/05%20EW%20Credit%20reference%20agencies%20and%20credit%20reports/Default.aspx
The other option is that you try to get the CCJ "set aside" in order to have the opportunity to deal with it as if it had only just been issued - this is where that court fee of £155 you mentioned would come in. Please be aware, though, that paying this fee is no guarantee of success as you would be expected to show good reason for your application - simply needing to clean up your credit file would not be enough. EDIT - posted before I saw your follow-up message.
You may find this guide useful:
https://www.nationaldebtline.org/EW/factsheets/Pages/12%20EW%20County%20court%20-%20how%20to%20set%20aside%20a%20judgment/Default.aspx
Best of luck
Dennis
@natdebtline
We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
lauravenue Posts: 25 Forumite
30 September 2015 at 6:55PM

Hi, thanks for your response. The first link you sent doesn't work. I have read all the information on the second link but I am still unsure of what to do. Do I pay it off, even though it will still remain on my report, and it may not make my report look any better, or do I apply to have it set aside? And even when they set it aside, could they get rid of it completely or does that mean that they will start the whole process again? As if that's the case, I would be paying £155 to apply to set it aside, and then another £150 if I had to pay for it.
MEM62 Posts: 4,746 Forumite

1 October 2015 at 9:46AM

Either way it will have an impact on your ability to get a mortgage. Take the advice you were offered earlier. Do nothing and apply for a mortgage after the CCJ has dropped of your credit history.

See Also
Unsettled CCJ's over 7 years old - Advice on how to resolve please...
lauravenue Posts: 25 Forumite
1 October 2015 at 10:09AM

Hi, i'm afraid that's not really suitable advice is it, just wait till it drops off but it will still exist? I have to apply for a mortgage before next November otherwise I will be homeless. Trying to work out what to do in terms of paying the CCJ off and how beneficial that will be to my situation. I think if anyone owes money, saying just wait till it drops off your credit report isn't really a sufficient action to take as either way it still exists, just not on your report. It doesn't vanish forever. I will have to just do whatever I think is worthwhile as unfortunately I am only getting advice which tells me to wait when I am unable to.
David_White Posts: 892 Forumite

1 October 2015 at 10:19AM

Hi Laura, your situation sounds very stressful so I feel for you.
If you need to get a mortgage agreed sooner rather than lately then there would be lenders available to you with the CCJ on your file.
I'd suggest speaking to a broker that deals with bad credit.
Good luck
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
DCFC79 Posts: 40,598 Forumite

1 October 2015 at 10:27AM

Once 6 years is up it will not be on your credit file so lenders etc wont see it. Your score isn't of any use, lenders don't even use, they use your credit history.
Pay it off if you like but it will still be there.
Do as David says above, you might find a mortgage is out there.
MEM62 Posts: 4,746 Forumite

1 October 2015 at 10:32AM

An open forum will give you a mix of opinions on your situation which you may consider or disregard as you wish.
I have taken your post as raising the question of the CCJ specifically in reference to the impact it will have on your future mortgage application. In that respect the advice is sound.
You have not been chased thus far and the CCJ is wiped from your record at the end of next year. I also believe that, if your ex-employer wants to take enforcement action after that point they have to go back to court to explain the delay.
If you have other reasons for paying or resolving it then go ahead but in respect of your mortgage application head down is probably the best approach.
And there are a number of options between the two extremes of mortgage and homeless.
lauravenue Posts: 25 Forumite
1 October 2015 at 11:22AM

I am afraid you do not know my situation, therefore saying there are a number of options between the extremes of mortgage and homelessness is incredibly insulting. Please understand that you have no idea what situation I am in and why that is my only option.
@DavidWhite and @DCFC79 thanks for your advice, I am currently looking for the best, appropriate mortgage broker, and I understand that it is entirely the correct way for me to go. I understand the credit 'score' is just to help me understand my report, but I think people are confusing my credit report questions with a credit score question. I just wanted to know if paid would it make my credit report look any better than if it was unpaid. I get the impression I don't have much choice in this matter so will do whatever I can to ease the situation. Thanks for your advice guys.

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CCJ - 5 years old and need some help! (2024)

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