What is the minimum amount a debt collection agency would file a CCJ against you?

David_Brent

Anyone know what the minimum amount a debt collection agency could file against you in a CCJ if they wanted to?

Reason I ask is I have broken an agreement to repay a loan as I lost my job after December and have only got back into employment recently so I was unable to make payments. The debt is £550.00 and the company sent out one of their scare tactic letters saying I broke the agreement etc and will instruct their solicitors to proceed with further action against me!

What I want to know is..is it realisitc that they will file a CCJ for such a small amount owed?

Another question I have is with regard to payday loans in general - can they access and update your credit report eg missing payment etc, could they send this information over to your credit file? As I have no entries on my credit check from them and this has been over 3-4 months now. I know when you apply for the payday loan they don't credit check you - they do their own kind of internal checks (banks statements - checking employers etc) so I am unsure if they touch your credit file weather late in making payments?

MichCoop

I had a CCJ against me several years ago for about £400-£500. They had absolutely no hesitation in doing it either (I think I had only missed 3 months payments before passing to debt collection, and again only a short time before CCJ).
Best of luck

MichCoop

I've just found this...
'While there is no minimum limit on the amount for which a CCJ can be applied for, it is normal to instruct a solicitor to carry out the application and therefore would be unusual for the debt to be less than GBP100'

Tixy

I've seen one for £140 odd, from a mobile phone company.

Did they say they will instruct solicitors or may? I think if you are making no payments at all they are much more likely to go for a CCJ than if you at least make token payments.

With regard to the payday loans, I think most do not report to the CRAs but certainly I have heard that at least 1 or 2 do. Would depend what was in the agreement you signed with them I would imagine.

David_Brent

Thanks for your replies - wow I didn't realise they would seriously waste time carrying out CCJ's for such small amounts!

In the letter it said "we may take legal action" this was sent to me about 4 weeks ago and I have not replied as I can't afford to pay them back yet. Obviously I don't want to get a CCJ and pay this off shall I wait until I hear from their solicitors? Will I get a letter from their solicitors before taking out a CCJ or can they just spring it on me?

MichCoop

I'm not totally sure of time scales with regard to debt companys, but I'm pretty sure once a CCJ is registered against you, you then have a month to clear this off and if successful you can request the CCJ be removed.

There is a full explaination here;
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/CourtClaimsAndBankruptcy/DG_10013083

David_Brent

So in thoery it is really worth me waiting to see if they do actually bother with a CCJ... and if they do claim a CCJ as long as I clear what is owed straight away (which I could do if it really reached this serious stage)the CCJ will be removed and won't show up on my credit score ?

MichCoop

It is an option. Be aware though you have the possibility of interest charges being added in the mean time, and then the courts fees will be added too taking the total amount owed to a higher figure.
Also you'll have the bother of getting the CCJ removed. I think you'll have to do this by contacting the Register of Judgments - I'm sure someone will be along soon to correct me on this if necessary and hopefully give advise on how much the court fees will be

RAS

Correct, though you do need to ensure the CCJ is not added to your credit record.

Tixy

Yep it won't show.

But if you get as far as getting the CCJ and paying off in a month then you will have court fees added.

David_Brent

Shouldn't the CCJ be put on your credit record after being found "guilty" so to speak.. can they just whack it on there as soon as they go through the county courts whilst awaiting an outcome?


So really I am gambling with the court fee's added on to my debt of £550 and any interest charged. Maybe it would cost me another £100 odd pounds if they do decide to CCJ me is it worth it me holding out for the sake of it to see if they progress?

And just to clarify as long as I settle within 14 days once a CCJ has been issued - I can get the CCJ removed from any of my records including credit report? Is that correct?

Also in the mean time to cover myself is it worth me sending the following letter to freeze any interest etc added to my loan as the DCA have sent me no evidence or written (signed) contracts that I owe them money.

WARNING
THIS IS A REQUEST UNDER THE CIVIL PROCEDURES RULES.
PLEASE DO NOT IGNORE.


Dear Sir/Madam,
Account Number:

Thank you or your letter dated ..............in which you have indicated that there is an imminent court action should I not respond to your letter.

In your letter you have given notice that ....................are preparing to initiate legal proceedings over the non-payment of the outstanding balance on the above credit card account.

Given that this matter is now subject to a potential legal proceeding, you are obliged to provide, under the Civil Procedures Rules, information to ensure that all parties are on an equal footing, and also to ensure the claim is dealt with expediently and fairly, avoiding an unnecessary burden to the court's resources.

Under the Pre-action Practice Directions - Protocols 4.6 of the Civil Procedures Rules, I request that you supply copies of the following documents:

1) A true copy of the executed credit agreement and any terms and conditions that applied to the account at the time of default and at the time the account was opened. Please note that a "true copy" as defined by the Consumer Credit Act will not be acceptable in this case, and a copy of the actual executed agreement, including signature, is required.



2) All records you hold on me relevant to this case, including but not limited to
1. A transcript of all transactions, including charges, fees, interest, payments and both the amounts of credit and any repayments made to the account.
2. Transcriptions of all telephone conversations recorded and any notes made in relation to telephone conversations
3. Where there has been any event in the account history over this period that has required manual intervention by any person, disclosure of any indication or notes that have either caused or resulted in that manual intervention, or other evidence of that manual intervention in relation to the account held by me with .................................................. is required.
4. True copies of any notice of assignment and/or default notice or enforcement notice that you sent to me, with a copy of any proof of postage that you hold.
5. Documents relating to any insurance added to the account, including the insurance contract and terms and conditions, date it was added and deleted (if applicable).
6. Details of any collection charge added to the account; specifically, the date it was levied, the amount of the charge, a detailed financial breakdown of how the charge was calculated, and what the charge covers.
7. Specific details of the fees/charges levied by any other agency in respect of this account and a detailed breakdown of said fees/charges and what each charge relates to and on what date said fees/charges were levied.
8. A genuine copy of any notice of fair use of my data as required by the Data Protection Act 1998.
9. A list of third party agencies to whom you have disclosed my personal data and a summary of the nature of the information you have disclosed.
10. Copies of statements for the entire duration of the credit agreement.
This information is required within the next fourteen days. I must advise you that if the information is not forthcoming, it will be reported to the Court that you are trying to deny me the opportunity to review my position in relation to your claim of alleged breach of agreement and any possible counter-claim.



Please note that, as you have initiated this action, failure to respond to this letter will place this account in clear dispute and as such you may not:
o demand any payment on the account, nor am I obliged to offer any payment to you.
o add any further interest or charges to the account.
o pass/sell the account or outstanding balance to any third party.
o register any information in respect of the account with any of the credit reference agencies.
o issue a default notice related to the account.
Should you ignore any of the above I reserve the right for legal action for redress, and will show the court this letter. I will also report your actions to any authority that I see fit and will request that your suitability to hold a consumer credit license to be reviewed.

I look forward to hearing from you in due course.


Yours Sincerely,

Thanks for all your help.