County Court Judgments (CCJs)

Anyone who receives a letter summoning them to court for an outstanding debt.

The court is not there to punish you, but to ensure fairness between you and the creditor. It may even help you solve your problem.

If you pay the debt before the court date you will avoid the hearing. You should try to pay your debt within one month so it does not affect your credit rating.

Your case is normally heard in the county court, which is not a criminal court. There are two paths, depending on the size of the claim. If it’s less than £5,000 then it’s called a small claim. If it’s more than £5,000 you should seek legal advice.

• The court will decide what’s fair

• Your credit rating will be affected and you may be refused credit in the future
• If the court decides you owe money and you don’t pay, they can take further legal steps to get their money, such as sending bailiffs around to take your possessions

You will receive a letter showing the details of the claim, the costs, the total amount and the repayment. You will also receive a response pack, with some forms you need to fill out. It’s important to respond by the deadline, otherwise you could face a court order. This means you will have to repay all the money, even if you don’t owe it, and possibly interest too.

Find out more about going to court by contacting Credit Action.