Credit Score Basics > Does a Tomlin order affect credit rating?

Does a Tomlin order affect credit rating?

Wollit Team2 minute read · Updated 16th September 2024

A Tomlin order is a type of legal agreement used in the UK to settle disagreements without a court judgment being made against one of the people involved. Here is how a Tomlin order works and how it can affect your credit score.

What is a Tomlin order?

A Tomlin order allows people who are in a disagreement to come to an agreement without needing a formal court judgment. It is often used in civil cases, like personal injury or business disputes. The order explains the terms of the settlement, like payment schedules, and lets the people involved keep some details private.

The name comes from a judge who issued a ruling that clarified the legal status of this type of court order in 1927.

How does a Tomlin order work?

When people agree to a Tomlin order, they create a written agreement that is then given to the court.

The court will pause the case, meaning no judgment will be made against the person being accused, as long as they follow the settlement terms. If the person doesn't do what they agreed, the other person can ask the court to make them follow the settlement without starting a new case.

What are the benefits of a Tomlin order?

The main benefit of a Tomlin order is that it can save you from having a CCJ recorded against your name. This can also be helpful when it comes to job prospects. Some jobs, especially in finance, may require you to have a clean credit record. By avoiding a CCJ through a Tomlin order, you can protect your job prospects.

Can a Tomlin order affect my credit score?

First of all, in most cases, a Tomlin order itself does not appear on a credit report.

This is because it doesn't result in a court judgment being made against you, which would usually be recorded. A County Court Judgment (CCJ), on the other hand, can significantly lower a credit score and stay on a credit report for six years.

Second, if the Tomlin order terms are followed, especially when it comes to making payments on time, there should be no negative effect on your credit score. As long as you pay according to the Tomlin order payment plan, the settlement will not be recorded as a judgment and will not affect your creditworthiness.

However, if you fail to make the agreed payments in a Tomlin order, the other person can ask the court to make you follow the order.

This could lead to a CCJ being made against you, which would lower your credit score. It's crucial to keep following the order to avoid any negative effects on your credit score.