Judgements - Interest and Fees after judgement date

[Wferguson]

Greetings everyone, I'm hoping you can help with a situation I'm looking at.

Back in 2001 I obtained a credit card with a $2,000 limit. I charged $2,100 on that card in a short period and stopped making payments on it. It was charged off in 2002 and sold to a collection agency. The collection agency attempted to contact me via phone but I never spoke with them. My debt was then sold to another agency who again was unable to make contact with me. This agency, however, employed an attorney to take legal action on my debt. They sent numerous documents to the address on the original credit account via US Mail but never, ever, attempted to serve me in person.

They filed paperwork with Walnut Creek Superiour Court and, again via US Mail, served me. I couldn't make heads or tails of the paperwork they had sent me and as they didn't even staple it I had lost a page from the packet. That page, apparently, was the one important one that I needed to fill out and mail in to the court. This information I wasn't made aware of until I went to court on the date specified and spoke with the clerk who advised that since I did not send remit the form that was in the packet, the page I lost, I was not put on the calendar and as such I was deemed a no-show. As a result of my no-show in court a judgement was filed against for $3,988 on 06/2005.

The attorney / collection agency again served me via US Mail numerous times since the judgement date. I have not had any contact with the collection agency or the attorney's until two days ago when I called them to discuss a possible settlement. They agent I spoke with said he would need to talk to the attorney's regarding my settlement offer. As of right now I have not heard back from the collection agency or the Attorneys.

They are trying to claim that I owe them the $3,988 judgement amount, plus 10% interest and their legal fees for a total of just over $10,000. I have not lived at the address they have on record for me for quite some time and have even changed my address with DMV. They are still using and claiming my previous address - which was also the address of the original debt.

I was working with a local loan agency to try and secure funds to pay this amount off and they, unofficially, advised me that since there was a judgement filed against me they believe, from their experience, I only owe the amount of the judgment itself and the collection agency / attorney can not attempt to collect alleged interest and / or legal fees accrued after the judgement date.

Thank you in advance for any help and insight.

 

[jharris352]

Everything in your post except for the legal fees sounds reasonable. Statutory interest on judgments is usually 9-14% simple interest. I suspect the $3988 judgment is the amount of principle, interest and legal fees up to the date of the judgment.

You are NOT liable for any legal fees incurred in collecting a judgment. The supposed $10,000 in legal fees is probably a red herring to scare you. They will "negotiate it away" or drop all or most of it if you will pay off the $3988.

That makes you want to settle for all of the debt instead of part of the debt thinking that you "got out of" the legal fees. Don't fall for it.

The $10k in legal fees is just a collection fraud. Ignore it.

If you want to, send them a cashier's check for $500 with a letter proposing that they take this "$500 check #1234" attached hereto as full and fair settlement of my debt. Put in the letter that cashing the check is acceptance of your settlement offer. Put on the back of the check where it will be endorsed "Cashing this check is acceptance of the offer attached."

Many times the check will be cashed before anyone reads the letter. As soon as it is cashed the account is settled to a zero balance. They will argue and complain but they are stuck. If they continue to call and write send them a "cease and desist" letter stating that you wish no further contact unless they want to take you to court.

Send a copy of the settlement letter and a copy of the check to all three bureaus to have them clear the debt to a zero balance on your credit.

As other collectors call (and they will) tell them you settled the debt and send them a copy of the letter. Eventually it will go away.