Unknown CCJ threatening renting

Larizla666

Hi

A friend of mine has just separated from his wife and has found a flat to move into. He has the money to pay the rent adequately and has put a £750 holding deposit down (requested by the estate agent). He found out this morning that he's actually got a CCJ against his name (to the tune of £900 from an old phone contract) which he had no knowledge of.

The estate agents are now saying that unless he can pay off the CCJ immediately AND secure a guarantor earning at least £35k p.a. he won't get the flat and more importantly perhaps, won't get his £750 back.

Is the estate agent legally allowed to keep that money? This was a CCJ he had no knowledge of...

Any advice would be greatly appreciated. I haven't had sight of any documents that he has signed or received from the estate agent since hadning over payment, i'm just persuing this now on his behalf because he's understandably totally gutted.

Thanks

Guest101

Well better get a set-aside asap. But that takes 4-6 weeks minimum.


Yes, the agent no doubt asked his financial status and he lied (unknowingly perhaps, but that's his fault)


I'd say the agent and LL would be happy if he got a guarantor, does he have one? Assuming he tells them he is petitioning the court for a set-aside as there was an error on the CCJ (I assume wrong address used for court papers)

Larizla666

Forgive me - what's a 'set-aside'?! I didn't even know what a CCJ was until I googled it after getting his message.

He can't find a guarantor with that level of earning at the moment.

Guest101

Larizla666 wrote: »

Forgive me - what's a 'set-aside'?! I didn't even know what a CCJ was until I googled it after getting his message.

He can't find a guarantor with that level of earning at the moment.

A CCJ is issued when payment isn't made in line with the orders of the court.


However if he didn't know about it, a court may decide it's reasonable to 'set aside' the previous decision (ie dismiss it) and set a new date for the case to be heard. Costs approximately £215 to do, those costs can be recovered if he wins.


A set-aside can only really happen where there is a reasonable likelihood that he would win. So he needs to have a good case.

Larizla666

Great help! Thanks.

And ultimately the estate agents are still within their rights to withhold the £750 and give the flat to another potential tenant should they wish? There's no way my friend can claim his £750 back in this instance?

Guest101

Larizla666 wrote: »

Great help! Thanks.

And ultimately the estate agents are still within their rights to withhold the £750 and give the flat to another potential tenant should they wish? There's no way my friend can claim his £750 back in this instance?

I don't know, because I don't know what was agreed. But typically your friend would lose out on his holding deposit.


He could take them to small claims, they may just pay out so as not to risk losing.

FBaby

That's a massive holding deposit!

sheff6107

The letting agents are only the landlord's representative.

Who is demanding the CCJ is settled and for there to be a guarantor?

The letting agent could well be trying it on. Pocketing £750 and telling the landlord you've pulled out is a nice business model if you like trousering a few extra seven-fifties a year.

Boatdweller

The LL may not be able to take out rent protection insurance if the tenant can't pass referencing, which, with a CCJ, you probably wouldn't.

What terms did your friend sign when he agreed to handover the £750 ? It should state on that what the circumstances are regarding refunding monies.

[Deleted User]

If he wants a set aside, he will have to go to a solicitor and create an affidavit (legally sworn statement) that he didn't know about the debt or legal action. This will cost more money above any court costs.

My ex went to court to get a set aside, expected to just be able to say he didn't know about the debt and be believed. The judge was asking him to prove that he didn't receive paperwork. He couldn't definitively although he did take proof he lived elsewhere. Judges get so many set aside requests that may or may not be true (debter trying it on).., they want legal 'proof' the debtor hadn't received notification of the CCJ action.

But double check this online. My ex had this problem some years ago, things may have changed.

Guest101

deannatrois wrote: »

If he wants a set aside, he will have to go to a solicitor and create an affidavit (legally sworn statement) that he didn't know about the debt or legal action. This will cost more money above any court costs.

My ex went to court to get a set aside, expected to just be able to say he didn't know about the debt and be believed. The judge was asking him to prove that he didn't receive paperwork. He couldn't definitively although he did take proof he lived elsewhere. Judges get so many set aside requests that may or may not be true (debter trying it on).., they want legal 'proof' the debtor hadn't received notification of the CCJ action.

But double check this online. My ex had this problem some years ago, things may have changed.

More importantly the judge needs to see there is a reasonable prospect of success.


e.g. the debt was disputed because ...