County Court Judgment - CCJ. Result of non payment of finance
A County Court Judgment is the result of when a court decision rules against a person for a non payment of a debt. When repayment on any debt has been defaulted the consumer is contacted about the arrears, should the consumer do nothing about this arrears and choose to ignore it then they will probably be taken to court. If the debt is is still not repaid then a judgement will be made by the County Court. The non payment of the debt will be registered on the borrowers credit file as a CCJ, this will make it extremely hard for the consumer to borrow any more money or to obtain any goods on finance as when a credit check is done it will result in a poor credit rating. If the debt is later paid or satisfied and a satisfaction certificate obtained it will be noted on the borrowers credit file. This will assist customers applying for fresh finance and if the debt is paid within a certain time could cancel out the adverse effect of the county court judgment.
CCJ Example -
UK Poor Credit Unsecured Loans
UK poor credit unsecured loans are not standard loans, and are tailored specifically for people who have a poor credit rating perhaps due to CCJ's. Having a County Court Judgment could mean clients are unable to get a UK loan from standard loan providers at a low rate due to having a poor credit rating due to the recorded CCJs. An unsecured loan for a person with a poor credit rating, will not be secured against property, this results in less security for the lender should you not make repayments, so higher interest rates are charged by the lenders. Terms, conditions and the APR could also be more strict to mirror the higher risk to lenders of borrowers defaulting. If the customer defaults on the personal unsecured loan, lenders will attempt to recover their loss in the courts. In the case of the borrower being a home owner they could be made to sell the property, or even the contents, to pay of their debts and settle with their creditors.
CCJ Information.
Consumers are able to find finance to suit their credit score even they have a poor credit rating and CCJ's. They have got to be prepared to pay more in interest and need to spend time looking for a lender who will accept them. The consumers credit history and suitability will be on a national credit database but it is up to the individual lenders in the end whether the risk is acceptable. There are UK loan providers online that specialise in lending to people in this situation. Having an bad credit rating due to CCJs will mean greater risk to the loan providers as it is considered that the borrower may default again. Some circumstances are unforeseen such as redundancy and can result in a person defaulting on repayments through no fault of their own. It is advisable to contact your lender straight away if you fall into repayment difficulties, they may be able to help and reorganise repayments to suit you better.