Can company impose CCJ without credit agreement?

CharlieHZC · 19 April 2019 at 12:32PM

Hello everyone,

I would like some advise on if a company can impose CCJ if they claim I owe them money?

Few items were bought from a seller with cash on delivery option. Few items were incorrectly sent by the seller without my consent and later acknowledged by the seller. Replacement was provided, however they refused to accept faulty item as it was opened (this is because they sent wrong items and I opened without knowing). Items are unused and has original packaging.

Now this company is threatening me to pay them additional amount which is twice the original cost of the items. Failure to pay them, they want to take this to the court, etc.

I am happy to fight for my rights with this company however I do not know if they can impose CCJ? I do not have any credit agreement as I paid for the original items in cash as one of purchase.

I spoke to legal services and they advised me to respond to their letter and if they do not agree ask them to go to the court and I should defend my case. Alternatively, I can pay them and then send letter to collect faulty items and refund. If they do not respond accordingly I can take them to Small Claims Court.

I am very concerned about my credit rating. I would appreciate if I can get some advise on this please.

Many thanks,
Charlie

fwor · 19 April 2019 at 1:19PM

Firstly, a company can never impose a CCJ. The "CC" in CCJ stands for County Court, and it is the court that decides whether a CCJ is granted or not. If they actually take you to court, you will have an opportunity to put your side of the case.

Secondly, a credit agreement is not required and is probably irrelevant in many court cases. As far as I'm aware, Cash on Delivery is not a form of credit, so the company would not need a Credit Agreement for that type of transaction.

sourcrates · 19 April 2019 at 1:27PM

It always makes me smile when i read posts where it says a "CCJ was imposed on me".
Problems can occur if you fail to complete the court papers, or if they are sent to an old address, then you end up with a judgement in default, but a judgement is never imposed on anyone, you normally have the chance to enter a defense.

The court system is open to everyone, so asking if a company can take me to court for X, Y and Z, then the answer is yes, they can, what you should be asking is this, is the threat of court action genuine, its much easier, and cheaper, to threaten to take you to court, than actually do so, 90% of the time its all bluff.

CharlieHZC · 19 April 2019 at 1:47PM

Thank yo for your feedback. Should I consider replying them via letter then paying and then taking them to the court?
Reason for asking this is if I I do pay first they do not have the opportunity to take me to the court instead I can them to the Small Claims court.
Many thanks,
Charlie

molerat · 19 April 2019 at 1:56PM

A CCJ is awarded when the court is satisfied that on the balance of evidence provided you owe the claimant, having a credit agreement does not come into it. You will have the opportunity to defend the claim and provide your own evidence, the defence that they sent the wrong items and will not take them back seems quite compelling. If you lose you will be given 28 days to pay the judgement and, as long as you pay in that timescale, nothing will be recorded on your credit file. Paying and then trying to claim it back is overcomplicating things.

CharlieHZC · 19 April 2019 at 6:52PM

The argument is that the the item is now open (as I did not know it was incorrect item) hence delivery men refused to take back faulty item, instead they tried to take back replacement which was just delivered which I did not allow them.

As per the legal advice I got, I can pay them first which mean I do not owe them anything so they cannot file any case against me. Once paid ask them to collect the item as per consumer rights act 2015 and refund money paid for the items they charged as per dispute. If they do not do so, file a case in small claims court and then they will have to defend the case. Once paid can I not claim back?

One of the key reasons for me to play safe is I would like to apply for mortgage in the near future and do not want to risk CCJ against my name or even a flag which as per legal advise there is a possibility.

Many thanks

MEM62 · 23 April 2019 at 12:05PM

CharlieHZC wrote: »

Thank yo for your feedback. Should I consider replying them via letter then paying and then taking them to the court?
Reason for asking this is if I I do pay first they do not have the opportunity to take me to the court instead I can them to the Small Claims court.
Many thanks,
Charlie

On the basis that your case / argument is same either way, why not defend your case if they take it to court? That will save you the fees incurred in initiating action against them.

CharlieHZC · 23 April 2019 at 12:20PM

MEM62 wrote: »

On the basis that your case / argument is same either way, why not defend your case if they take it to court? That will save you the fees incurred in initiating action against them.

This is to avoid any negative flag on my credit file which may affect me getting credits in the future i.e. mortgage, etc.
Many thanks

phillw · 23 April 2019 at 12:27PM

CharlieHZC wrote: »

This is to avoid any negative flag on my credit file which may affect me getting credits in the future i.e. mortgage, etc.
Many thanks

The reason you're given time to pay before the CCJ will appear on your credit file is because a lot of cases will involve disputes which would need to be heard in a court.

If it was their fault they sent the incorrect item and refused to take it away because the box had been opened then it would seem logical to offer to return it at court, it would seem strange for one court to force you to pay for something that another court would find that you shouldn't have to pay for as it could prejudice the outcome, you could win in court and then before you send the bailiffs to recover goods to pay the debt they could go bankrupt.

MEM62 · 23 April 2019 at 12:49PM

CharlieHZC wrote: »

This is to avoid any negative flag on my credit file which may affect me getting credits in the future i.e. mortgage, etc.
Many thanks

If you loose, pay within the allotted time and it will not appear on your credit history. The perceived risk you are concerned about is not there.

CharlieHZC · 23 April 2019 at 12:49PM

Thank you all for your inputs. This has been of great help as I have never been in this situation and as a common man it scares when you hear court names. All above makes sense and hoping to resolve this issue without any more inconvenience to me.

Can company impose CCJ without credit agreement?

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