Article by Ben Ryland - 19th August 2021

If I Pay My CCJ Will It Go Away?

Over 640,000 CCJs were issued across the UK in 2020. While still a monumental figure – totalling £1.5 billion owed – the trend of record breaking CCJ numbers (as seen in 2019) is finally over. For how long this remains the case, however, is uncertain.

On a near daily basis we’re asked: "if I pay a CCJ, will it be removed from my Credit Report?" The answer is not a simple ‘yes’ or ‘no’ unfortunately, as it depends on when the CCJ was issued, when you pay it, and how much you pay.

If you're unsure whether you have an active CCJ, you can check your Credit Report to see any and all judgments in your name. If you haven’t already, you can try checkmyfile free for 30 days and then for £14.99 a month afterwards, which you can cancel online at any time. You’ll be able to see what each of the UK’s four Credit Reference Agencies are reporting about you and compare their Court Records.

Will paying a CCJ remove it from my Credit Report?

If you pay the full amount of a CCJ within one calendar month of the judgment being issued, it will not appear on your Credit Report at all. That means it won’t impact your Credit Rating, but the arrears and default that led to the lender initiating court action will still remain for six years from their date of issue. These markers will affect your Credit Score and ability to take out credit while they are present on your Credit Report, but an active CCJ would have an even greater impact, with many lenders rejecting customers with one showing in their Credit History.

If the full amount for a CCJ is not paid within a month of the judgment being issued, the CCJ will be recorded to your Credit Report, where it will remain for six years from the date of issue. If you pay the remaining debt in full after your CCJ has been issued, it will still remain on your Credit Report, but will be marked as ‘Satisfied’, which is visible to prospective lenders, landlords, and employers.

How do I pay a CCJ?

Whether you’re looking to pay off a CCJ in full, or agree upon a monthly arrangement, you’ll need to contact the claimant directly, as this is who needs to be paid. Once the CCJ has been fully paid, the claimant will notify the issuing court and the status of the CCJ will be changed to ‘Satisfied’.

If you are unsure who the claimant is, contact the court that issued the CCJ instead. The court will be able to tell you the claimant details, including how to contact them.

What if I can’t pay a CCJ within the first month?

If your financial circumstances mean you cannot pay the judgment balance in full within the first month, the CCJ will be issued and will be reported on your Credit Report for six years from the original judgment date when the case was heard by the court.

You may be able to arrange paying in instalments with the claimant if you cannot make the full payment, but assuming this payment plan lasts longer than the first calendar month, the CCJ marker will still appear on your Credit Report. Once the full amount has been paid off it will be marked as ‘Satisfied’ by the Registry Trust for the remainder of the time it appears on your Credit Report.

Some lenders will look more favourably upon a satisfied CCJ than one that has not been paid, but others will not even consider an application where the applicant has a CCJ in any form. Paying the amount owed will prevent the courts issuing any further proceedings to reclaim the money.

What if the CCJ isn’t mine?

You shouldn’t have to pay a CCJ that isn’t yours just to make it go away. If you have any doubts about what to do if a judgment is incorrectly registered in your name, contact the claimant that has issued it immediately. Any incorrect data on your Credit Report can cause issues when it comes to applying for finance, and while incredibly rare, on occasions CCJs can be registered to the wrong person.

Regardless of whether you feel the judgment is accurate or not, acting swiftly makes the process go a lot smoother for everyone, so if you have any concerns do not hesitate to contact the claimant.

If I ignore a CCJ will it go away?

The final option, which we would argue does not constitute a viable option, is to ignore a CCJ. By ignoring the claim, the court can proceed with a ‘Judgment in Default’. This type of judgment happens when the claim forms haven’t been returned, so the court can’t take your financial circumstances into consideration.

This will result in the full claim (plus any court fees or interest) being demanded to be paid in full and enforcement action through County Court Bailiffs can take place. On your Credit Report the CCJ will be reported as ‘active’, remaining for six years from the original judgment date.

Contrary to popular belief, waiting six years for a debt to become statute barred does not mean that it has been written off. It merely means that the debt cannot be pursued through court action, so if you've already been issued a CCJ, a Statue Barred status will not help you.

To see how your CCJs will appear when checked by lenders, landlords and even prospective employers, you can try checkmyfile free for 30 days, then for just £14.99 a month afterwards, which you can cancel online, by phone or by email. You'll get access to the UK's most detailed Credit Report, which collates your complete information from Equifax, Experian, TransUnion, and Crediva – so you know you’ve seen it all. If you need any guidance, our professionally qualified Credit Analysts are contactable by secure message through your account.

Updated on 19 August 2021 by Sam Griffin

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