Partner has CCJ - impact on becoming a 'financial associate'?

Granny_Grudge

Hi Folks,

My partner has a CCJ issued against his old address after he moved out to live with me. We have only found out after doing a Statutory report.

He does intend to pay this off now that he's aware of it, however even once paid off it's my understanding that it will stay on his credit report for 6 years.

Currently we're not listed as 'financial associates' but joint accounts / mortgage may be on the horizon. If that time comes, will my own rating be negatively impacted by being financially associated to someone with a settled CCJ? Even if it is not directly impacted by the association, if we are refused credit on a joint application due to his past CCJ, will that joint refusal impact my history?

Thanks!
Granny

Ant.Evs

Granny_Grudge wrote: »

Hi Folks,

My partner has a CCJ issued against his old address after he moved out to live with me. We have only found out after doing a Statutory report.

He does intend to pay this off now that he's aware of it, however even once paid off it's my understanding that it will stay on his credit report for 6 years.

Currently we're not listed as 'financial associates' but joint accounts / mortgage may be on the horizon. If that time comes, will my own rating be negatively impacted by being financially associated to someone with a settled CCJ? Even if it is not directly impacted by the association, if we are refused credit on a joint application due to his past CCJ, will that joint refusal impact my history?

Thanks!
Granny

It would indeed effect you too. After a Financial Link has been made, when you alone apply for credit they can also see his file also which would flag up his CCJ and more than likely result in a decline.

Most Lenders will not lend you money with a CCJ satisfied or not. Those that do will be at silly rates (35% +)

I would not make any joint applications with your partner until the CCJ has dropped of his credit file.

Although not the news you probably wanted i hope this helps

Ant.Evs

oh and the CCJ will drop off 6 years from the date the CCJ was issued. That date should show on the statutory report that you have.

Granny_Grudge

Ant.Evs wrote: »

It would indeed effect you too. After a Financial Link has been made, when you alone apply for credit they can also see his file also which would flag up his CCJ and more than likely result in a decline.

Most Lenders will not lend you money with a CCJ satisfied or not. Those that do will be at silly rates (35% +)

I would not make any joint applications with your partner until the CCJ has dropped of his credit file.

Although not the news you probably wanted i hope this helps

Thanks - do you know if marriage will also create a financial link, or is it just joint credit applications?

hillcats

Best keep finances separate until the CCJ has been satisfied / settled and then dropped off of his credit file, it seems for the best results wait until the six years are up, then check it has actually gone before doing anything ...

Tixy

The marriage won't create a link.

Opening joint credit accounts definitely will.

Applying for a joint account but being declined may create a financial associate, but if it does you can file a notice of disassociation to have it removed.

But I would agree avoid applying at all until the CCJ is dropped off his file if at all possible.

Granny_Grudge

Thanks folks, very helpful.

I have 2 final questions:

1) Will a successful appeal remove the CCJ from his credit report? (Am thinking on grounds that he supplied the pursuer with his new address prior to moving, but they obviously haven't taken heed.)

2) If they haven't recorded his current address, what are the consequences of ignoring the CCJ? Will it 'expire' after 6 years and drop off the credit report?

Angry_Bear

Ant.Evs wrote: »

It would indeed effect you too. After a Financial Link has been made, when you alone apply for credit they can also see his file also which would flag up his CCJ and more than likely result in a decline.

Most Lenders will not lend you money with a CCJ satisfied or not. Those that do will be at silly rates (35% +)

I would not make any joint applications with your partner until the CCJ has dropped of his credit file.

Although not the news you probably wanted i hope this helps

The warnings are good to take note of, but things won't necessarily be quite as bleak as that. My OH has 2 CCJs (satisfied) that will drop off in a couple of months. We successfully got a joint mortgage about 18 months ago at 4.29% (so competitive, but not eye-watering).
I also got a sole car loan about a year back for 12k at 5.1% (so VERY competitive)*.

Obviously there are other factors, but things aren't necessarily doom and gloom.

* And before anyone says anything, I can afford the car loan, and have been overpaying significantly and already paid off more than half. I wouldn't have needed a loan at all except the old car packed in so close to spending all our savings on a house deposit.

Granny_Grudge wrote: »

Thanks folks, very helpful.

I have 2 final questions:

1) Will a successful appeal remove the CCJ from his credit report? (Am thinking on grounds that he supplied the pursuer with his new address prior to moving, but they obviously haven't taken heed.)

Yes, if you can prove that he gave them his new address and they didn't use it you might be successful with a "set-aside". They would be entitled to re-apply for a CCJ, but if you paid within 28 days his credit report would remain clean.

2) If they haven't recorded his current address, what are the consequences of ignoring the CCJ? Will it 'expire' after 6 years and drop off the credit report?

Not exactly. After 6 years it would drop off his credit report so this would be clean. However, he would still technically be liable for the debt, on the other hand, the creditor would have to re-apply to a judge to be able to enforce the CCJ and give a good reason why they waited for so long.

Tixy

1) That would be a set aside claim. Can he prove he gave them his new address? did they still send court papers to the old address. If yes and he makes the set aside claim and is successful the CCJ will be removed. Then he can either pay the debt, or they start a new court claim which he either defends or admits.

2) Likelihood is that they will find him and chase him there. In fact if he has ordered his credit file he has in effect linked the 2 addresses and he could find he is chased soon.
He may get letters. Possibly they may go back to court to appoint bailiffs. If they know where he works they may try to go for an attachement of earnings.

If they didn't find him then yes it would drop off his file 6years after the judgement date.