newbie - CCJ at end of debt?!

rachelg

Hello, just hoping someone will be kind enough to advise me. I messed up my finances quite badly 5 years ago but back on track now. Final debt is to a HSBC debt collector, about 2k which I pay £20 per month towards. The 6 year "drop off credit file" will be next August. Can they slap me with a CCJ if I continue to pay, meaning another 6 years of bad credit? Shall I pay £20 a month for the next 8 years or so? They are not willing to accept a lower settlement that I can afford e.g £400 and are being quite difficult about everything, as they have been all along really.
Thanks in advance
Rachel

National_Debtline

Hi Rachel and welcome to the forum.


I suppose it is technically possible that this creditor could seek a CCJ at any point, in which case your credit file would be impaired for a further six years. It would, however, be very unusual for them to do so in these circumstances, as the court would expect them to sue you only as a last resort when other strategies have failed. Here, you already have a stable payment agreement in place with them - if they believe that you can/should pay more, they should ask you for relevant information, such as an up to date financial statement, rather than abruptly issuing court papers.


As for your attempts to negotiate a settlement offer, don't give up just yet. It may be that you need to persevere and/or wait for the debt to change hands, as the next owner may be keener to take a quick lump sum off your hands in exchange for writing off the remainder. You may find our guide to negotiating settlement offers useful:


https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx


Dennis
@natdebtline

Westminster

For clarity - the 6 years you are referring to for an account dropping off your CRA files is counted from a default date.

You need to check when (or more importantly if) HSBC have defaulted you and it will be 6 years from then.

If they have not defaulted you - then the account will remain visible for 6 years from when the account is closed (which will be when you finish paying it off)

rachelg

Thank you both for your replies, very kind!


They defaulted me in August '10 (according to credit report). I'm assuming that someone can't CCJ you without giving you a chance to respond? So I wouldn't find a CCJ on my file whilst I'm paying them £20 a month? I may be in a position to pay more soon, and am happy to do this as they have frozen the interest etc


Thanks
Rachel

PaulW922

You cannot just 'get' a CCJ. You would receive claim paperwork in the post and get a chance to respond. However given the progress you have made on reducing the debt that is unlikely. If you stopped paying that would be another matter..

'Surprise' CCJ usually appear when a debtor has moved and not advise the creditor.