Credit repair is the process of rectifying inaccuracies
contained within your credit file. Credit repair involves removing
unwarranted CCJ's and defaults from your credit file, thus improving
your credit rating and allowing you access to the levels of credit
you deserve.
How do I end up with a CCJ or Default?
A CCJ is what you end up with if you fail to repay an outstanding
debt and fail to follow the subsequent legal process.
The road to being issued with a CCJ is as follows:
1. You fail to repay an outstanding debt (bill, a loan, an invoice,
etc).
on Debt Management and
Bankruptcy
Our advisors will be happy to
give you free debt advice about how you can manage your
debts
2. You
receive a formal demand for payment from the creditor.
3. You ignore the demand.
4. The creditor sends you a 'Claim Form' (previously a
Summons) demanding payment within 14 days or your
defence in writing.
5. You ignore the Claim Form.
6. The creditor asks the court to enter a Default
Judgement.
7. The court send you the CCJ giving you 28 days to pay.
8. You ignore the CCJ.
9. When the 28 days expire, the CCJ will be on your
record for 6 years.
What is a Default?
A Default is a formal demand for payment of some form of
agreement (hire purchase, lease) that you have missed
three payments of. You cannot pay or satisfy a Default,
it will just be added to your credit record.
CCJ's and Defaults are both regarded as serious
information by lenders.
What does a credit repair company do?
If you dispute the contents of your credit file, a
credit repair company can help. On your behalf, a credit
repair company will follow the due legal process to
prove the inaccuracies on your credit file and have it
changed to its rightful state.
How can I check my credit file?
There are two companies that supply 99% of credit
reference requests:
Consumer Help Service
Experian
PO Box 8000
Nottingham NG1 5GX
Credit File
Advice Centre
Equifax
PO Box 1140
Bradford BD1 5US
Write to both companies with all of your addresses in
the past 6 years (provide postcodes, go to
www.royalmail.co.uk if you need them). If there are two
of you, married or not, you will need two separate
applications.
Send each application with a £2.00 cheque, payable to
the name of that company. The information will be sent
to you in about 14 days. A useful booklet that explains
what to look for and what to do if you see any problems
will accompany the information you receive. Some credit
repair companies charge an outrageous amount of money to
get to this stage. The two things you are looking for
are information on CCJ's and Defaults.
