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:

Consumer Help Service
Experian
PO Box 8000
Nottingham NG1 5GX

Credit File Advice Centre
Equifax
PO Box 1140
Bradford
BD1 5US

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.