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Credit Repair companies seeking to have Judgment removed from credit listings

Friday, December 19, 2014 - Posted by Philip Harvey

We have had a number of recent cases where credit repair companies have contacted us to advise that unless it is agreed to set aside a Judgment that they will approach the court to have the Judgment set aside.

In these cases one of the Judgments had been paid in full on the basis of an Instalment Order being filed with the Court. In another example the debtor had settled the debt and another a Notice of Confession of Whole of Claim had been filed.

In short there was no valid reason to remove the credit listing with the debtors only making payments towards the debts as a result of the Judgment being enforced.

The objective of the credit repair company is to remove all listings on their customers credit file. This process is commenced by the credit repair company against the credit provider in instances where the credit listing is not a Judgment by threatening to go to an Ombudsmen (either FOS or COSL)  to try and leverage the Credit Provider to have the listing removed. If the Credit Provider does not oblige the credit credit repair company takes the matter to the Ombudsmen. You can read more about what the Ombudsmen is trying to do about this here.

Where the debt is a Judgment debt the only way for them to achieve this to have Judgment set aside, either by consent or having the matter listed for hearing. Alternatively they may wait out the appropriate amount of time before the Judgment drops off on the credit file.

On each of our lawyers appearances in Court no one has appeared for the other side and the Court has dismissed the proceedings stating that there is no proper basis to continue and awarded a Cost Order against the debtor. The credit repair companies are only succeeding in adding to their clients debts.

We speculate that as these people are worried about their credit files, they are in a financial position where they want to borrow money and have some capacity to repay their debts, but cannot borrow until their credit files are cleared up. With a Court Order for costs, we will now be collecting debts that were previously paid.......

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