Non Priority Debts
Non Priority creditors have no special powers or sanctions that can directly lead to imprisonment, eviction, repossession or disconnection. To recover their debts from defaulting customers, the ultimate action for non priority creditors is to use the county court claim process. They may use debt collection agents to try and collect debts, which includes letters, solicitors letters, home visits and telephone calls. They may charge additional interest and charges once an account is in arrears.
If a creditor decides to take county court action against a client, they will issue a claim against the client in a County Court. This will result in a County Court Judgment (CCJ).
If the creditor has already obtained a court judgment which is defaulted, the creditor may be able to take enforcement action or make the debtor bankrupt, which could have more serious consequences. For example, if the client is a home owner, s/he may risk losing her/his home. Enforcement action includes:
If a claim has been issued or your client requires advice about any stage of enforcement, your client should be referred for debt advice.
For further information about identifying whether a debt is a priority or a non priority debt please visit the Advice Guide wesbite and National Debtline website.