Being sued - impact on credit rating?

Steve_in_South_London

I've had no problems getting credit when needed, have a mobile phone contract and everything is paid on time.

I've had a dispute with a builder and he is threatening to sue. He has said that this will affect my credit rating. The amount is likely to be around £900.

I'm happy to turn up in court and argue my case. If I lose, I can (and would) pay.

Would a judgment show on my credit record or otherwise affect my credit rating?

Tixy

If he takes you to court and is successful in obtaining a county court judgement you have 28days to pay the amount the court says is due (incl court fees etc). If you pay in 28days it won't appear on your credit file.

If you don't pay within 28days of the judgement then it will appear on your credit file and be on there for 6years and would seriously affect your rating and your chances of getting mainstream credit for those 6years.

Steve_in_South_London

Thanks very much, that's reassuring.

JasX

Yes thats my understanding too, you go to court, if the court finds against you but you pay in full pretty much immediately (28 days sounds about right but check if in doubt or ASK in court if you like).

So long as you pay in full in the alloted time (allow extra in case of admin issues) there is no credit file impact

nzseries1

I'd heard the same thing - and my understanding was also that it is 28 days.

Flicker1uk

That's correct but be aware of the purpose of going to court. You may have a dispute with the builder but that is not the purpose of the court. The purpose is to determine if there is a debt. If there is a debt, then it should be paid.

So, if the builder has done work and you owe him for agreed work, you cannot withold payment as a form of protest. What you should do, is pay him and then organise what should be done to fix what you believe is needed. IF he doesn't agree, you can then sue him the other way for goods not been to the correct standard.

A lot of people make this mistake and end up with a CCJ. Also be aware that although you have 28 days to pay the amount, admin errors can occur, it can show up on your credit record and then you need to investigate to get it removed. And even after all that, your credit rating may still have been affected.

Steve_in_South_London

Flicker1uk wrote: »

You may have a dispute with the builder but that is not the purpose of the court. The purpose is to determine if there is a debt. If there is a debt, then it should be paid.

So, if the builder has done work and you owe him for agreed work, you cannot withold payment as a form of protest.

Thanks, but the dispute is about the amount owed. He has invoiced me more than is on the quote, claiming the job was bigger than he expected. I have offered to pay the amount of a the quote plus a bit extra on top (out of sympathy really). He wants the whole lot.

I've been advised that legally I should be OK and hopefully he won't litigate. But I was concerned about the what-ifs.

Flicker1uk

Ok, Steve, you need to be careful here. A quote is for work to be undertaken, if the work changed ( in any way), he can bill you for more though he should have received your agreement before proceeding with anything beyond the initial scope.

What specifically was the initial request and what has he billed for and what does he say was different that is the crux of the argument?

Steve_in_South_London

Flicker1uk wrote: »

Ok, Steve, you need to be careful here. A quote is for work to be undertaken, if the work changed ( in any way), he can bill you for more though he should have received your agreement before proceeding with anything beyond the initial scope.

What specifically was the initial request and what has he billed for and what does he say was different that is the crux of the argument?

I appreciate the interest, but I fully understand quotes etc., and it really was just the credit rating concern I had. There was no change to the specification or work to be carried out and I ran it past my solicitor who advised the guy doesn't really have grounds for a claim.

I'm guessing the builder is "trying it on" or trying to save his position with the partnership through which he operates as he undestimated the time for the job and had to get extra labour in.