Reasons why a lender issues a CCJ
If you have debts that you have defaulted on, the lender will almost certainly report his experience with you complete with date of default and other actions taken against you to the credit reporting agencies.... which will likely mean you will have difficulty getting credit going forward.

They may or may not decided to issue county court proceedings against you. Usually though it makes good business sense for them to go ahead with a CCJ. The initial proceedings are not expensive for the lender, and often yield results in that they do get a certain percentage of those threatened with a CCJ to pay up, more than covering the relatively small cost for pursuing all the other Judgments that they issue.

Enforcing a CCJ
However, once a CCJ is issued, actually enforcing a judgment can be expensive. Many lenders elect to commence county court proceedings purely for their threat value, and also so that a record of your judgment will appear on your credit file further compounding difficulties for you to get credit. It helps them in the long run as they will save themselves being caught out twice! If you have a CCJ on your credit file all is not necessarily lost - there are a variety of different circumstances that can enable it to be removed.

For more on how CCJ's are issued and also how to remove them from your credit file, the Complete UK Credit Repair Guide provides valuable information to help understand how the system works and also the circumstances and methods of how to remove CCJ's even if it is years after they were issued. For details about the guide please click here