Woman asking If I pay a ccj will it be removed

It depends. To answer your question ‘If I pay a CCJ will it be removed’ accurately we need to discuss two scenarios.

Firstly, if you pay the CCJ within 30 days of it being issued then it will never appear on your credit file. Technically it hasn’t been removed because it was never added to your credit report but that’s splitting hairs!

If you pay after the 30 day deadline it will remain on your credit file for 6 years as ‘settled’.

Is a ‘Settled’ CCJ a removed CCJ?

Unfortunately not. A ‘settled’ CCJ is still frowned upon by many banks, landlords, utilities companies, and even some employers. Many of these organisations will decline an application outright. Those that don’t will likely create a more favourable situation for themselves by increasing interest rates for loans and mortgages.

So already we can start to see why your question, ‘If I pay a CCJ will it be removed’, is so important. But why do these organisations view what is essentially a resolved issue in this way?

Why do companies dislike ‘Settled’ CCJ’s so much?

It could certainly be argued a paid CCJ shows responsibility to settle outstanding debts rather than hiding from them. As many also receive a CCJ because they never received the chase letters it can also seem very unfair when you dealt with the issue as soon as you become aware of it.

For these companies, however, it’s a case of risk mitigation. For a CCJ to be issued the claimant is required by law to send you a warning letter you are about to default on a debt. Furthermore, they must also state that if you fail to pay they will take legal action.

Many companies will also send multiple warning letters and late notices to an individual before this point. In addition to these letters, when a CCJ is issued the court will send the judgement demanding payment is made within 30 days.

As mentioned above, if payment is made within the 30 day window the CCJ will not feature on your credit report so to have a CCJ against your name means you missed this final deadline.

These institutions also argue an element of personal responsibility. They would say you should be aware of the money you owe, when it is to be paid, and to manage your finances so late payments don’t occur.

For example, paying phone and utility bills, loan repayments, even parking tickets when a physical copy is attached to your car.

For these companies the process looks like this;

  1. The individual enters an agreement with clear payment requirements on their behalf
  2. The individual is sent letters reminding them to pay before the due date
  3. The individual is sent multiple late payment notices
  4. The individual is sent at least one warning letter that legal action will be taken if the debt is not paid
  5. The court sends the individual a court summons
  6. The court sends the individual a judgement demanding payment within 30 days
  7. The individual fails to meet the 30 day deadline and the CCJ is attached to their credit file

When viewed in this light it can seem quite damming on the individual as it shows repeated failure to settle a debt. It also shows a significant time commitment on behalf of the claimant to reclaim the debt.

These are the two main concerns an organisation will have. Will they get their money and how much effort will it take to reclaim a debt.

Does this mean I’m wasting my time even asking ‘If I pay a CCJ will it be removed’?

Despite the above process looking very much in favour of the claimant, it’s not always the case. You should also know you’re not alone in receiving a CCJ. In fact the Registry Trust identified that in the Q2 of 2020 475,808 new judgements were processed with a total value of £1,127,725,812. Whilst we can’t say how many of these people asked themselves ‘If I pay a CCJ will it be removed’, we do know there are many who don’t ask this crucial question and suffer from the long term impact of having the CCJ on their credit file.

Many people fail to meet the 30 day deadline because they didn’t receive any notification of the debt. But how can this be when the above correspondence is undertaken?

Well the most common scenario is when you are issued a parking ticket. Many car parks at supermarkets, hotels, pubs and service stations use cameras to log vehicles as they enter and leave. If you stay too long, or don’t follow the steps to show you’re a customer (like providing your registration number to reception when staying at a hotel), you can be issued with a parking ticket.

As this is all done digitally no physical ticket is attached to your car as you might expect.

The next common point of failure is if you’ve recently moved or were not at the property when all the notification letters were sent. This includes all chase letters, warnings, court summons, and judgements.

Typically, people will not receive this communication because they have just moved house. Even if you tell the DVLA on the day of your move it can still take up to 6 months for all their records to be updated – More than enough time for all this to happen with you completely unaware of what’s going on.

With all this in mind, lets relook at that list with the points cross off which can be reasonably explained away if this scenario is true;

  1. The individual enters an agreement with clear payment requirements on their behalf
  2. The individual is sent letters reminding them to pay before the due date
  3. The individual is sent multiple late payment notices
  4. The individual is sent at least one warning letter that legal action will be taken if the debt is not paid
  5. The court sends the individual a court summons
  6. The court sends the individual a judgement demanding payment within 30 days
  7. The individual fails to meet the 30 day deadline and the CCJ is attached to their credit file

Almost all of them when it comes to a parking ticket received around the same time you move house, or if you were not at the property at the time say working outside of the country.

Even the first can be argued to some extent. For example, let’s say you were picking up someone from a hotel and waiting for them to checkout. Whilst the debt is still valid as signs around the car park would state this being an issue, it can be argued it was a simple mistake and sway the court in your favour whilst making the claimant look overly zealous.

What should I do then?

We’ve written a whole post on how to remove a CCJ we recommend you read. The short answer, however, is you can challenge a CCJ  in court to have it removed.

Whilst you can do this yourself, we would always recommend speaking to a specialist like Lender & Court first. The process is difficult and time will not be on your side. Speaking to a professional agency like ours will help you understand your options and the best course of action before you waste your time and effort descending down a rabbit hole of Google searches.

If nothing else however, take solace in the knowledge you’ve cleared the first hurdle many fail at by simply asking the question ‘If I pay a CCJ will it be removed?’ rather than blindly following the instructions a claimant have sent you.