Tenant with CCJ - Rent Guarantee Insurance

[orchardw]

Hi there,

 

I am a landlord and would like to rent out my property.  And then we have found a potential tenant through OpenRent, great! 

 

However, the tenant, she is very upfront with us and honest, she had 2 CCJ records marked as "discharge".  As a results, it is very high chances the referencing will come back as fail because of the CCJ records that hold against her back in 2016 and 2018.

 

She is a single mum with 2 kids and is a DSS tenant.  We have interviewed the tenant, she is genuine and honest person,   a good single mum that work hard to feed the kids.  She has been renting the current place for 8 years, due to the landlord wants to sell the property she has no choice but to look for another place to rent.

 

Now the dilemma is, as a landlord, I have make so many phone call to look for a the insurance company that accept her case, hasnt got any luck!  May i know anyone has any ideas or came across this before? Advice will be greatly appreciated.

 

Also, some of the RGI company has taken this product offline because of Corona Virus outbreak.

 

Thanks in advance whoever will be able to advise.

 

Thanks,

Orch

[BankFodder]

Well I hope somebody will come along to be able to give you the advice you need – but I have to say that it seems to me that you are making a very decent gesture and a great effort to help somebody who's obviously vulnerable and in need.

Bravo!

[dx100uk]

a ccj is only considered discharged if its paid within the 1 month from judgement, or the credit decides you don't owe it, i'e you are discharged of the CCJ as the debt has been paid or removed

 

though I've never seen it listed as such on a credit file

 

new one on me too?

 

does she know about what the debts were?

who are the listed claimants?

 

and did she ever respond/defend them?

or were they backdoor default judgements?

 

 

[orchardw]

I asked the tenant to find out more about the CCJs and she rang the relevant court (County Court Business Centre in Northampton). They told her that both debts had been bought by Lowell. Both original debts were with EE. So I guess it was bought before the month expired.

 

The tenant was clearly not aware of it being sold on to Lowell. If Lowell or EE haven't contacted her after the CCJ, have Lowell/EE breaching any GDPR regulations by not informing her that CCJ (and personal details) have been transferred/bought without her consent. What are her rights here?

 

In the meantime, should she try to contact Lowell to attempt to pay off her debt?

 

What actions do you recommend?

 

Thanks in advance.

[slick132]

Would you get Rent Guarantee Insurance  if the tenant is DSS as you say above ?

 

Have you always used RGI and has it ever paid out for you, if appropriate ?

[dx100uk]

they are called backdoor CCJ's 

 

Lowell dca are a debt buyer

they buys these debts for <10p=£1 from the original 'creditors'

then file court claims using an old address as she'd obviously moved and never told her creditors she'd moved.

 

paying the CCJ's off does not remove them.

setting them aside is the only way to guarantee to remove them or poss a mutual consent order

but why these are listed as discharge is another matter.

 

most of these telecom CCJ's lowells get are almost totally made of costs per month to end of contract to supply the service - which couldn't be used anyway as the service was already disconnected.

most of these CCJ's if defended are discontinued as charges till end of contract are unlawful.

 

[AndyOrch]

There should be a date after the discharged entry. This is Clearscore Credit files terminology

 

A CCJ will be on your credit report for 6 years from the date of judgement/decree. Also, the date the CCJ is terminated from the Court will reflect as the 'Discharged Date' on their Clear Score report, hence if you can see that 'discharged: undefined ' it means that the CCJ is still active

[orchardw]

1 hour ago, slick132 said:

Would you get Rent Guarantee Insurance  if the tenant is DSS as you say above ?

 

Have you always used RGI and has it ever paid out for you, if appropriate ?

I would be able to get RGI if the tenant is DSS. It's the CCJ that insurer's taking issue with, which is fair enough if it is outstanding.

TBH I have never used RGI before, I have read some insurers are good and some try to weasel of payment. I have had bad tenants before and really want some peace of mind, this time around.

 

1 hour ago, dx100uk said:

they are called backdoor CCJ's 

 

Lowell dca are a debt buyer

they buys these debts for <10p=£1 from the original 'creditors'

then file court claims using an old address as she'd obviously moved and never told her creditors she'd moved.

 

paying the CCJ's off does not remove them.

setting them aside is the only way to guarantee to remove them or poss a mutual consent order

but why these are listed as discharge is another matter.

 

most of these telecom CCJ's lowells get are almost totally made of costs per month to end of contract to supply the service - which couldn't be used anyway as the service was already disconnected.

most of these CCJ's if defended are discontinued as charges till end of contract are unlawful.

 

 

Thanks for the information. I am keen to help the tenant irrespective of whether I end up renting to her or not. I think she does deserve a break and some help.

 

What should the tenant do next? Is it worth contacting EE or Lowell or CAB about the CCJ?

How would she fight the backdoor CCJ and be able to set the aside the decision if Lowell are the debt owner?

Can she challenge EE/Lowell over selling her debt (one of debts falls after GDPR came into effect)?

[orchardw]

3 minutes ago, Andyorch said:

There should be a date after the discharged entry.

 

A CCJ will be on your credit report for 6 years from the date of judgement/decree. Also, the date the CCJ is terminated from the Court will reflect as the 'Discharged Date' on their Clear Score report, hence if you can see that 'discharged: undefined ' it means that the CCJ is still active

She uses Clear Score and there is no "discharge: undefined" just "discharged", so what does that mean?

That sounds to me, like the CCJ is not active but she owes Lowell? I assume she has had no contact from them at this point. Surely you are not hinting that she should do nothing? 

[AndyOrch]

If its discharged then I assume means is no longer.....discharged means you're freed from your debts......a CCJ is normally only marked satisfied..... if paid.

If it was over 6 years it wouldn't show. on the CRA.

 

Discharged is usually connected to Bankruptcy or Debt Relief Order Process...when a CCJ has been placed into this process...and discharged.

 

I dont suppose shes been a Bankrupt or had a DRO ?

[orchardw]

19 minutes ago, Andyorch said:

If its discharged then I assume means is no longer.....discharged means you're freed from your debts......a CCJ is normally only marked satisfied..... if paid.

If it was over 6 years it wouldn't show. on the CRA.

 

Discharged is usually connected to  Bankruptcy or Debt Relief Order Process...when a CCJ has been placed into this process...and discharged.

 

I dont suppose shes been a Bankrupt or had a DRO ?

 

I don't think she is registered bankrupt. DRO, I will have to ask.

However, Lowell are well known for buying out debt from other companies, which makes me think a debt could be chased. Especially if EE (other mobile phone companies are available) are happy to sell on debt on accounts.

Selling on account/debt details without consent is a big No-No in my eyes, surely it breaks GDPR rules...?

[AndyOrch]

I think the best option to save anyone embarrassment is to speak to Clearscore and ask what does this marker  " Discharged "actually indicate ? 

I have looked at their website and their is no mention in their acronyms.

 

As the Landlord...Lowell are really of no concern to yourself and how their business model works.........if you have a few spare hours there is plenty on here about DCAs and debt assignment. If they do chase her its not your problem or liability...nor are the CCJs....IMHO.

 

Debt Assignment has no connection to GDPR.....

[AndyOrch]

Quote

She is a single mum with 2 kids and is a DSS tenant.  We have interviewed the tenant, she is genuine and honest person,   a good single mum that work hard to feed the kids.  She has been renting the current place for 8 years, due to the landlord wants to sell the property she has no choice but to look for another place to rent.

 

Reading your initial post again....

 

I think all the above is reason enough to agree the tenancy .....without insurance.

[slick132]

RGI sounds great but, just like any insurance product, give the insurer the slightest excuse and they'll wriggle out of paying faster than a speeding bullet.

 

Use your own judgement to decide if the prospective tenant is a good and reliable person, or not.