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DEBT recovery agencies face a crackdown after it was found families are being crippled financially by court judgments they knew nothing about.
Thousands of people are being refused mortgages because of the legal rulings made when they were not present. Parking firms and utility companies were singled out for particular criticism.
More than 2,000 County Court judgments (CCJs) are signed off daily, without the cases being defended or heard by a judge in open session.
The number of CCJs has risen by more than a third in three years. Almost 900,000 were issued last year, and 85 per cent were uncontested.
They often result when people forget to inform utility companies or their bank promptly after a change of address.
Bills and CCJ claims, which stay on a person’s credit file for six years, are then sent to the old address and they are unable to dispute an order or pay.
Now the Government has announced plans to end the abuse of CCJs, after families whose lives were ruined by rogue judgments spoke out.
The heartbreaking stories include a family left homeless over a stranger’s parking ticket and newlyweds who missed out on buying their dream home because a water bill went to the groom’s old house.
It is understood the Government wants to force debt recovery firms to prove the address they have used is up to date.
A Ministry of Justice Spokesperson said: “It is a Government priority to ensure our legal system is not open to abuse.
“We... are currently working with the Business and Energy Department to see what more can be done to ensure debt recovery agencies have accurate contact details before pursuing a judgment.”
Baroness Altmann, the ex-pensions minister, welcomed the decision. She said: “I am delighted the Government is taking action. I hope it is going to act really swiftly to stop this travesty of British justice.”
Last year Kristian Hancocks’s life was turned upside down by a CCJ. The 40-yearold engineer and father of two from Uttoxeter, Staffs, found out about a “debt” only when he was declined a mortgage, causing a house purchase to collapse.
The judgment was over a £40 parking ticket given to the owner of his old car. The parking firm had sent letters to an address the family hadn’t lived at for five years.
Mr Hancocks said. “While this was going on, our house sale completed and we couldn’t back out. The house we wanted was sold. We were soon to be homeless.”
The family now live in rented accommodation, with their belongings in storage.
Almost 1.5 million people have had CCJs issued against them by default in two years. In these cases no defence is offered so they are signed off electronically by the court on evidence supplied by creditors.
Many only find out about the judgments when they are refused mortgages or loans. The Ministry of Justice figures do not give any more information about the victims or what happened in their cases.
http://www.express.co.uk/news/uk/721...overy-agencies
Thousands of people are being refused mortgages because of the legal rulings made when they were not present. Parking firms and utility companies were singled out for particular criticism.
More than 2,000 County Court judgments (CCJs) are signed off daily, without the cases being defended or heard by a judge in open session.
The number of CCJs has risen by more than a third in three years. Almost 900,000 were issued last year, and 85 per cent were uncontested.
They often result when people forget to inform utility companies or their bank promptly after a change of address.
Bills and CCJ claims, which stay on a person’s credit file for six years, are then sent to the old address and they are unable to dispute an order or pay.
Now the Government has announced plans to end the abuse of CCJs, after families whose lives were ruined by rogue judgments spoke out.
The heartbreaking stories include a family left homeless over a stranger’s parking ticket and newlyweds who missed out on buying their dream home because a water bill went to the groom’s old house.
It is understood the Government wants to force debt recovery firms to prove the address they have used is up to date.
A Ministry of Justice Spokesperson said: “It is a Government priority to ensure our legal system is not open to abuse.
“We... are currently working with the Business and Energy Department to see what more can be done to ensure debt recovery agencies have accurate contact details before pursuing a judgment.”
Baroness Altmann, the ex-pensions minister, welcomed the decision. She said: “I am delighted the Government is taking action. I hope it is going to act really swiftly to stop this travesty of British justice.”
Last year Kristian Hancocks’s life was turned upside down by a CCJ. The 40-yearold engineer and father of two from Uttoxeter, Staffs, found out about a “debt” only when he was declined a mortgage, causing a house purchase to collapse.
The judgment was over a £40 parking ticket given to the owner of his old car. The parking firm had sent letters to an address the family hadn’t lived at for five years.
Mr Hancocks said. “While this was going on, our house sale completed and we couldn’t back out. The house we wanted was sold. We were soon to be homeless.”
The family now live in rented accommodation, with their belongings in storage.
Almost 1.5 million people have had CCJs issued against them by default in two years. In these cases no defence is offered so they are signed off electronically by the court on evidence supplied by creditors.
Many only find out about the judgments when they are refused mortgages or loans. The Ministry of Justice figures do not give any more information about the victims or what happened in their cases.
http://www.express.co.uk/news/uk/721...overy-agencies
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