What are the Grounds for Removing a CCJ? Your Detailed Guide

A County Court Judgment (CCJ) can have serious consequences for your financial health and creditworthiness. Whether it affects your ability to secure a mortgage or a job or simply causes undue stress, you will probably want the CCJ removed if you can. The process is not automatic, and you will need to convince the court that there is a valid reason for setting aside the judgment. This article explains the grounds you can rely on to successfully apply for a CCJ removal.

The Court Must Set Aside the CCJ if the Claim Form Was Sent to the Wrong Address

The court rules require that a court action begins with a claim form, which must be served at the defendant’s usual or last known residence. If the claim form was sent to the wrong address, the court is obliged to set aside the CCJ. It is only fair that defendants have the opportunity to respond to claims made against them.

What is the correct address for serving a claim form?

Part 6 of the Civil Procedure Rules prescribes how to serve a claim form. In most claims against individuals, the claim form must be sent to the usual or last known residence. Note that the word is ‘residence’ and not ‘address’. It’s not enough for the claim form to be sent to a contact address, such as a friend or family member. Therefore, an address you have never lived in cannot be your usual or last known residence.

If the claimant has reason to believe that you no longer live at the last known residence, they must take reasonable steps to find out your current residence before starting the claim. However, if they have no reason to believe you’ve moved home, a claimant can often argue that the claim form was correctly served because it was sent to the last known residence, even if you didn’t receive it.

Sometimes, the claim form may be addressed correctly but not delivered to you, for example, if the envelope was damaged, lost in the postal system, or the postal worker mistakenly delivered it to the wrong address. In these circumstances, the claim form will still be deemed to be correctly served, provided the address on the envelope was correct.

How to persuade a court that the claim form was not correctly served

To persuade the court that the claim form was not correctly served, you may need to prove that the claimant had reason to believe you were no longer at the last known residence. This can be achieved by:

• Providing evidence that you informed the claimant of your move.
• Demonstrating that mail sent to your previous address was returned to the sender.

If you informed the claimant of your change of address, this should be documented and presented to the court. If the current occupant of your previous residence returned mail addressed to you, this can support your claim.

There is also scope for arguing that the claimant should have proactively taken steps to find out your current address. For example, the claimant could have checked the electoral roll or used a tracing agent.

The Court May Set Aside the CCJ if You Have a Good Defence

Even if the claim form was correctly served, the court may still set aside the CCJ if you can show that you have a real prospect of successfully defending the claim if there were a full trial.

What is a real prospect of successfully defending?

In an application to set aside judgment, you don’t have to prove your defence. Instead, you simply need to show that you would have a real prospect of proving your defence at trial if you had the opportunity. The bar is set relatively low. However, you do need to show more than an arguable defence. The court must consider whether you have a ‘realistic’ as opposed to a ‘fanciful’ prospect of success. Your defence must carry some degree of conviction.

Defending Common Types of Claims

Think carefully about whether you have a defence. Often, defendants admit the claim against them. The only reason they didn’t pay it is that they weren’t aware of it. If that’s you, then it’s better to acknowledge that rather than trying to argue that you have a defence. Some general advice relating to two of the most common types of claim is set out below.

Parking Charges: If your CCJ relates to a parking charge, you may have a defence if:

• The signs at the car park were not sufficiently clear, and as a result, you weren’t aware of the regulations. Proving this is difficult because parking companies are usually careful to ensure that the signs are clear;
• There was a delay between entering the car park and finding a space, and the parking company treated you as though you were parking without paying during that time.
• You had permission to park in the car park, irrespective of what the signs say. For example, you may be a leaseholder at a block of flats, and the lease agreement gives you the right to park in their car park.

Loan Agreements and Credit Cards: If proper procedures were not followed, such as failing to send a default notice or notice of assignment, you may be able to defend a claim under the Consumer Credit Act 1974.

Evaluating the Defence

Defending the claim will be time-consuming, stressful and uncertain. You may decide it’s simply not worth the effort. However, when applying to have CCJ set aside, it’s at least worth letting the court know of any potential defence because it’s one of the grounds the court will consider when exercising its discretion. If the court sets aside the CCJ, you can then decide whether to continue your defence or settle the claim.

Other Good Reasons for Setting Aside a CCJ

Even if the claim form was served correctly and you don’t have a real prospect of defending the claim, the court may still set aside the CCJ if there is ‘some other good reason’. This gives the court broad discretion to look at all the circumstances of the case. The factors they consider include:

• whether you’ve acted promptly in taking steps to set aside the CCJ.
• The reasons for not responding to the claim form;
• The claimant’s conduct;
• The importance of the case and the amount involved
• The impact the CCJ is having on you.

Examples of good reasons for setting aside the judgment

The following examples illustrate some of the circumstances that may lead a judge to exercise discretion in your favour.

Financial harm: A CCJ on your credit report can cause serious financial problems, particularly if you’re applying for a mortgage or other credit. A court will usually recognise financial harm as a good reason to set aside a CCJ.

Impact on career: Certain professions require members to have a clear credit record, particularly those who work in the financial services industry. For some, a CCJ may mean losing their job or being refused a job offer.

Lack of warning: As part of the pre-action protocol, claimants are expected to send a ‘letter before action’. Failure to do so could be a factor when the court exercises its discretion.

Conclusion

Understanding and effectively presenting the grounds for setting aside a CCJ is essential for maximising your prospects of success. Demonstrating incorrect service, a viable defence, or other good reasons like financial harm can persuade the court to set aside the judgment. The process involves filing an N244 application form with the court, which includes providing a detailed witness statement and supporting evidence. Being proactive and informed is key to navigating this complex process successfully. By following these steps, you can increase your chances of successfully setting aside a CCJ and protecting your financial future.

If you find the process overwhelming, consider seeking advice from specialised legal services that can provide expert guidance and support.