Need some advice quick!!!!!!

[SQLguy]

I have a judgement from a local company here in Utah called Knight Adjustment. It was filed in 9/97. I need to get this resolved as part of an agreement for closing on my house.

I did a business entity search and found 2 listings for this company. One as a corporation and one as a collection agency. The collection agency listing had expired.

I called the state Division of Commerce for clarification. They said that in Utah a corporation has to register. If they are a collection agency, they also have to register as that as well.

She said that if it is showing as expired, the corporation can still operate, but they cannot operate as a collection agency.

I received a letter from them last night continuing collection activity. I need suggestions as to how I can use this to my advantage.

Thanks!!!!!!!!

[Methuss]

Collection Agency Licensing Requirements:

Title 12 of the Utah Code requires that any person or business who wishes to conduct collection activities must first register with the Division of Corporations and Commercial Code, and post bond in the sum of $10,000.00. In addition, if the collection activities involve consumer trasactions, i.e., those involving assignment of installment contracts for personal, family, or household purposes, the collection agency must also register with the Utah Department of Financial Institutions as required under section 70C-8-20, et seq. of the Utah Code. Violators may be subject to a charge of a class A misdemeanor in the State of Utah.

Detailed information regarding registration of Collection Agencies may be obtained from:

State of Utah

Division of Corporations and Commercial Code

160 East 300 South, 2nd floor

P. O. Box 146705

Salt Lake City, Utah 84114-6705

Find out if they are licensed per above. If not, then the collection activity is illegal. Looks like they've been keeping tabs on your credit report and now that they see from your inquiry history that you're looking to buy a house, they are resurfacing.

Since they have a judgement, you've got problems. I doubt you will get that off your report before a closing. The minimum dispute time through the CRAs is 30 days...and that is if it goes smoothly. You may have to do a "Nehemiah" program to pay it off. Ask your mortgage broker if you need more details on this program.

[SQLguy]

Thanks for the info. I actually about 6 months. We are having the house built. The loan is pretty much approved .The condition of closing is that I need to have these cleared up. We are not planning on closing until October/November. I contacted the agency you listed and the information I got leads me to believe that their collection license has expired. If I dispute this based on the fact that they are no longer legally licensed to collect it, do you think it would come off?

[Methuss]

Thanks for the info. I actually about 6 months. We are having the house built. The loan is pretty much approved .The condition of closing is that I need to have these cleared up. We are not planning on closing until October/November. I contacted the agency you listed and the information I got leads me to believe that their collection license has expired. If I dispute this based on the fact that they are no longer legally licensed to collect it, do you think it would come off?

Nope. The judgement remains. That is a public court record entered by a judge. Since you have time, you can try disputing it with the CRAs as "not mine" and see where that leads. you'll have an answer onthis within 30-45 days. Since it's pretty old, the records likely have been shipped to off-site storage and will be difficult for the court/CRAs to retrieve. You may get lucky.

[SQLguy]

Thanks!!! Worst case scenario, could I use this as leverage to settle?

[Methuss]

Thanks!!! Worst case scenario, could I use this as leverage to settle?

Unlikely. They apparently know you're looking at buying a house, so they know you have some assets currently on-hand. They also know that you can't close on the house without dealing with this, so they are unlikely to bend. I expect they will be looking for the full amount as a result.