Rules on creditors legal action

PeterSM

Hi I have some questions about legal action from creditors.

1. Can a creditor take legal action like a CCJ or debt collection agency referral after one default or does it need to be more than one month in arrears?

2. If the above answer is it has to be more than one month in arrears on your credit then does this mean the whole duration of the loan or card or only when in arrears for consecutive months? Say if someone is in arrears and then brings the loan or card back to normal and then goes into default again 2 months later can they take legal action at this point?

3. What does a creditor have to do before going to court for legal action? Is there a certain amount of warnings or letters or a period of time in arrears before they can get a CCJ or similar?

I would appreciate any clarification on this.

pogofish

You need to get this moved to an appropriate forum. This is wrong for your question.

fermi

Move to Debt-Free Wannabe for better responses.

sourcrates

Original creditors very rarely take legal action, it’s just not cost effective to take every defaulted account to court, so they usually pass your account to a debt collector, who will attemt to extract payment from you.

If that fails the debt is then normally sold on, if you engage with the new owner, then legal action won’t normally be taken, if you don’t, then it remains a possibility.

Unfortunately there is no way of knowing which accounts they will litigate on, and no verifiable time scale for action to commence, but they do have to follow the civil procedure rules, and a letter before claim will be your first notification of there intentions.