Whay haven't they got a CCJ?

rubbishgambler

I recently had two defaults (1.5k barclaycard & £6000 pdl) which dropped off my credit file as they bacme SB?

I was sat with my mother yesterday and she asked why in the final year before they became SB didn't the creditors apply for CCJ's? I couldn't answer her so wondering if anyone else could help?

Is it to do with the cost of applying for CCJ? From the creditors point of view it seems a waste just to see the debt's become SB without taking further action to claim back their money? Not that I'm complaining!!

Gordon_Hose

Not all debtors go to court.

They may have not had the correct paperwork.

They may have forgotten.

Could be any reason really.

vax2002

They have insurance against defaulters.

The decision to lend is often based on the insurance risk of lending the money.
Your credit file is the bit you are allowed to see, there is another bit that lenders can see.
Nothing ever vanishes off that one.

HappyMJ

vax2002 wrote: »

They have insurance against defaulters.

The decision to lend is often based on the insurance risk of lending the money.
Your credit file is the bit you are allowed to see, there is another bit that lenders can see.
Nothing ever vanishes off that one.

Pardon....which one is that then? There is no secret credit report with old unpaid SB debts on it. Anyone can see their own full credit report with extra bits such as identity searches on it that lenders can't see.

skyshadow

vax2002 wrote: »

They have insurance against defaulters.

The decision to lend is often based on the insurance risk of lending the money.
Your credit file is the bit you are allowed to see, there is another bit that lenders can see.
Nothing ever vanishes off that one.

This is only a part of it.

There is a process of working out days a debt has become overdue plus repayment plan to work out the "Debtor Days" (I don't have the formula to hand right now) Some insurance companies will will refuse to pay the full amount if the debt chase process hasn't been followed through, along with the fact if your credit card if for £100 it's not worth the time and effort of going to court to get back such a low sum. It's not just the court fees, there is still a person having to attend court and do pre-case work and they could have 50 other debts for much more that simply took priority, remember most people in this industry are commission based so will pick the big debts first to collect on.

In these case a lot of companies will simply write the debt off as "bad debt" and they get some tax relief for it as well as it improving their stance with their credit insurers as they now only have £1million of aged debt as opposed to £5million.

In these cases they cannot collect on a debt once it is written off as they have already had the tax relief and it would be fraud, but they do not want to advertise this fact to the creditor.

It might even be something as simple as they have lost the paperwork or have no idea where it is. When I did business to business debt recovery, the paper filing was abysmal. Branches were closed down and all paperwork transferred to another local branch then perhaps binned by the new administrator who though Warrington paperwork was nothing to do with Liverpool and didn't need to be kept. Another common event was the wrong invoice being paid so at the end of every year all the paid invoice paperwork was destroyed and only the owing documents were kept and sent to legal to then be showed this debt was paid and it was in fact an invoice we had destroyed that we were trying to collect on. The human factor in these situations happens far more than companies would like to admit.