UK CREDIT REPAIR FAQ

What is credit repair?

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.

What is a CCJ?

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).

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.

A CCJ is regarded as serious information by lenders.

What is a Default?

A Default is a formal demand for payment of some form of arrangement (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. A Default is 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:

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.

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