Credit Damage Alert
Expert Warns Over 270,000 Homeowners: Ignoring CCJ Letters Can Severely Damage Credit
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More than 270,000 people across England, Wales, and Northern Ireland have received County Court Judgment (CCJ) letters — and experts are urging them not to ignore the post. Bristol Post BBC financial expert Laura Pomfret has warned that ignoring a CCJ could damage a person's credit file for six years, blocking them from getting a mortgage, renting a home, or even signing a mobile phone contract.
New CCJ registrations hit 270,113 in Q1 2024 — a 17.5% jump on the same period the previous year, according to Wales Online. By Q1 2026, that figure had climbed further to 308,926. A key driver is soaring energy debt, which Ofgem now puts at £4.5 billion across the UK.
What a CCJ Letter Means and Why It Matters
A CCJ is issued by a county court when someone owes money and does not pay it. The creditor — often an energy supplier — applies to the court, which then sends the debtor a formal letter. If the person ignores that letter, the court issues a default judgment against them, according to Chronicle Live.
Pomfret said the consequences are severe: "It can go on the person's credit reports for six years. It can impact you getting a mortgage, a rental property, or even a mobile phone contract... It is definitely something to avoid." The vast majority of CCJs are default judgments, meaning the debtor never responded at all.
The 30-Day Window That Could Save Your Credit Score
There is a critical escape route that most people do not know about. If a CCJ is paid in full within 30 days of the judgment date, the debtor can apply to have it removed entirely from the register. Miss that window, and the mark stays on the credit file for the full six years, according to Cambridge News.
Pomfret's core message is clear: act fast. Do not ignore the letter. Even contacting the creditor or seeking debt advice before the judgment is issued can prevent a CCJ from being registered in the first place. Free help is available through Citizens Advice and StepChange.
Energy Debt at Record £4.5 Billion Fuels Surge in Enforcement
Energy bills are behind a large share of the new CCJs. Ofgem reports total energy debt has reached £4.5 billion, with the average household in arrears owing £1,611 — double the figure from 2021, according to Get Surrey. Suppliers, who paused enforcement during the 2022–2023 cost-of-living crisis, are now actively pursuing unpaid bills through the courts.
Ofgem's interim CEO Tim Jarvis has been blunt: "Energy cannot become a source of free or cheap credit by default." He added that customers who do pay their bills are currently contributing around £50 a year toward the cost of managing and writing off others' debts. A 13% price cap hike in July 2026 has added further pressure on struggling households.
Homeowners Face Extra Risk of Charges Against Their Property
For homeowners specifically, a CCJ carries an extra danger. A judgment can be followed by a Charging Order, which legally secures the debt against the person's home. In extreme cases, this can lead to a forced sale, according to Wales Online.
With over 300,000 new CCJs registered every quarter, analysts warn that a growing number of first-time buyers and people looking to move are being pushed out of the mortgage market entirely. Registry Trust CEO Chris Dick has called for faster recording of satisfied debts: "It's important that if and when debts are resolved, those satisfactions are recorded quickly and accurately."
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