If you have unpaid debts you’re struggling to pay, your creditors may take you to the County Court Money Claims Centre (CCMCC) to recover the money they are owed.
But what is the County Court Money Claims Centre and what should your next steps be if you are served with a money claim from the CCMCC?
In this guide, we’ll cover everything you need to know about the County Court Money Claims Centre so you can be prepared if your creditors take legal action against you.
What does the County Court Money Claims Centre do?
In England and Wales, the County Court Money Claims Centre (formerly the Claim Production Centre) primarily deals with applications made to the Small Claims Court over money owed to individuals and businesses.
Since 2012, it has acted as the main administrative body for dealing with a range of administrative tasks related to the early stages of the small claims process from admissions and default judgments to defences and allocation questionnaires.
Additionally, the CCMCC is also responsible for issuing warrants of execution which gives bailiffs working on behalf of the County Court the right to pursue individuals for unpaid debts.
However, it is worth remembering that the County Court Money Claims Centre only deals with claims made on paper and to make a money claim online via Money Claims Online (MCOL), you must do so with the County Court Business Centre.
How does the County Court Money Claims Centre work?
As outlined in the Ministry of Justice’s Civil Procedure Rules, any individual or business that is owed money by another individual or business can apply to the County Court to take legal action over an unpaid debt. Here is how the process of applying to the County Court for a money claim typically works:
Pre-action letter
Before an individual or business applies to the County Court to demand payment for a debt they are owed, they must serve the debtor with prior notice in the form of a pre-action letter. This is a formal notice that explains why legal action is being taken and requests that payment is made within 14 days.
Money claim
If the debtor fails to pay or reach an agreement to repay the debt, the claimant is free to request a money claim form from the County Court to initiate County Court proceedings.
County Court notice
After the claimant has made a money claim, the court will issue a County Court notice to be served to the debtor. They will then have 14 days to acknowledge they have received it and respond in one of three ways:
- Pay the total debt in full
- Pay what they believe they owe
- Ask for an extra 14 days to defend the claim
Default judgment
If the debtor fails to respond in any way, the court will assume they have accepted the debt and the claimant will be free to apply for a default judgment. This is a judgment that is entered without trial because the debtor has failed to respond to a claim.
What is the County Court Business Centre?
The County Court Business Centre deals with money claims made online through the MCOL but, unlike other centres for County Court claims, it doesn’t hear cases in person.
It, essentially, allows users to issue online civil money claims and pay court fees using a credit card as opposed to managing their claim offline through traditional means.
There is also an option to submit a single file containing information on a number of claims. With this method, case fees can be paid in a single lump sum as opposed to separate payments.
Can I be taken to the County Court Money Claims Centre for my debts?
If you have unpaid debts, a creditor may take you to the County Court Money Claims Centre in an attempt to recover the money they are owed.
However, as with most debt cases, you will usually only be taken to court as a last resort if alternative, less serious, means of recovering the debt have been unsuccessful. As a result, you should always receive prior written notice that a creditor is chasing you for a debt before you are taken to the CCMCC.
What should I do if I get a summons to the County Court Money Claims Centre?
If you have received a summons from the County Court Money Claims Centre, it means your creditor is taking legal action against you for an unpaid debt you owe. You have several options:
- Take responsibility for the money owed and repay it in full by making a payment to HM Courts and Tribunals Service
- Confirm you owe the money but ask for more time to repay it in full
- Agree that you owe the money but refuse to repay it partially or fully (this may lead to the court issuing a County Court Judgment demanding full payment plus added interest within 14 days)
- Challenge the existing claim (this will result in a hearing where both sides can make their claim)
- Ignore the claim (this may also result in a County Court Judgment)
How can I avoid being taken to the County Court Money Claims Centre over debt?
Whilst repaying the debt in full is the quickest way to avoid court action, there are several other options that may be better suited to your financial circumstances.
For example, entering into an IVA (Individual Voluntary Arrangement) can put an immediate stop to court proceedings and prevent creditors from taking legal action against you. It can also allow you to consolidate your debt into a single monthly payment that you can comfortably afford which can make it easier for you to get your debt written off.
Similarly, entering into a Debt Management Plan (DMP) or Debt Arrangement Scheme (DAS) can also stop court action in its tracks and allow you to deal with your debts in a way that is more manageable for you.
