Question to the Ministry of Justice:

To ask Her Majesty’s Government what action they are taking to penalise companies which repeatedly take action against individuals who do not lodge a defence and who are subsequently discovered not to have received any notification of the relevant County Court action.

On 23 December the Ministry of Justice announced a consultation on ways to protect people from having their credit ratings affected despite being unaware of the claims made against them. The consultation, which will be launched in the spring will consider how the current system can be improved and reinforced to ensure that companies take all reasonable steps before they are able to apply to a court for a claim. We will also examine to what extent unscrupulous debt agencies have contributed to the problem.

To accompany the consultation the Ministry of Justice will also launch a new public advice campaign on how to protect people unaware of their debts and will remind people of the important of informing companies of their new address.