Jump to content

love to BUST Wolpoff & Abramson!


jeffr
 Share

Recommended Posts

Here's my situation:

My wife had an MNBA Mastercard. It's balance was $5,000 and we did not pay on it for a long time. We hired a debt settlement company (they did fair), however we couldn't settle it, so W&A filed suit. They obtained a Judgement, but did not execute on it provided we paid $250 a month for 4 months, then they would reevaluate it.

Unfortunately communication got a little screwed up and we didn't pay them for 2 months. When I realized the error, I quickly forwarded them a check for $250, but they had already garnished my wifes wages. They took 25% out (about $410) and even cashed the check I sent them!

With this happening they've received $660 from me. When I contacted them to pay this off, they said I still owe $6300.00!

I guess my question(s) are this:

1. How long can a creditor continue to add late payments, interest, and fees?

2.Can fees, interest, etc...still be added after it's charged off?

3. I'm in Michigan. How much do I pay in interest on the Judgement? How is it computed? Monthly, annually?

To go from a $5,000 debt to $6900.00 seems fishy!!

Please advise!

Link to comment
Share on other sites

1. How long can a creditor continue to add late payments, interest, and fees?

Until the debt is reduced to judgment - if ever. If they never sue and get a judgment, the interest just keeps piling up. The 'late payment' is erroneos, but they can stack up the 'past due' amount.

2.Can fees, interest, etc...still be added after it's charged off?

Yep

3. I'm in Michigan. How much do I pay in interest on the Judgement? How is it computed? Monthly, annually?

600.6013 Interest on money judgment. (7) For a complaint filed on or after July 1, 2002, if a judgment is rendered on a written instrument evidencing indebtedness with a specified interest rate, interest is calculated from the date of filing the complaint to the date of satisfaction of the judgment at the rate specified in the instrument if the rate was legal at the time the instrument was executed. If the rate in the written instrument is a variable rate, interest shall be fixed at the rate in effect under the instrument at the time the complaint is filed. The rate under this subsection shall not exceed 13% per year compounded annually.

( 8 ) Except as otherwise provided in subsections (5) and (7) and subject to subsection (13), for complaints filed on or after January 1, 1987, interest on a money judgment recovered in a civil action is calculated at 6-month intervals from the date of filing the complaint at a rate of interest equal to 1% plus the average interest rate paid at auctions of 5-year United States treasury notes during the 6 months immediately preceding July 1 and January 1, as certified by the state treasurer, and compounded annually, according to this section. Interest under this subsection is calculated on the entire amount of the money judgment, including attorney fees and other costs. The amount of interest attributable to that part of the money judgment from which attorney fees are paid is retained by the plaintiff, and not paid to the plaintiff's attorney.

(9) If a bona fide, reasonable written offer of settlement in a civil action based on tort is made by the party against whom the judgment is subsequently rendered and is rejected by the plaintiff, the court shall order that interest is not allowed beyond the date the bona fide, reasonable written offer of settlement is filed with the court.

Link to comment
Share on other sites

Was there a written agreement concerning them not executing on the judgement? What did it say concerning fees and such. If not then the post judgement interest would default to UCC rates for your state or may be codified in the collections statute for your state.

If you want to make your eyes bleed go read the UCC. You may be able to Google the state post judgement interest rate.

Link to comment
Share on other sites

It sounds like you must be one of MBNA's binding arbitration customers. They use Wolpoff & Abramson to enforce their receivables. (W&A also represents some sleazy JDB's such as UNIFUND.) Given the wage garnishment there is no incentive to make any further payments. Unfortunately, they are probably within their legal rights to do what they did and they would not be liable to make refunds.

Link to comment
Share on other sites

Yes, however they did take my check 2 weeks early, and it was postdated, technically they violated the FDCPA:

--The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit under 15 USC 1692 (f) Section 808 (2)

I wish I would have sent that CRRR. Any chance I may beat them on this?

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.