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illegal judgment ?


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A credit union sued me back in the summer of 07 for an old credit card debt (about $2000 including interest). Based on the information they had I decided it would be best to work out a payment plan instead of fight the case (only after tons of reading and a few posts on this site). So a payment plan was agreed upon.

Unfortunately I was laid off recently and missed 2 payments. I contacted the lawyer collecting on the debt and explained the situation, I also explained that I was planning on sending full payment to get this off my back. I was told that I was in default of the agreement and a judgment was imminent (but hadn't been filed yet). So after scourging up the funds I sent out a cashier's check for the full amount of the debt and mailed it via certified mail with a return receipt.

A little over 2 weeks later I receive the return receipt back along with a letter. To my surprise I open the letter to find out a judgment had been filed against me for defaulting on the payment plan. The thing is the letter was dated January 16th, but the return receipt showed the payment delivered on January the 14th. Is this legal? Is this a violation of the FDCPA? What steps should I take to get this corrected? Do I need to file a motion to vacate?

Thanks in advance for any input you can provide.

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First of all you need to look at what you signed when you made the payment arrangements. You may have given them permission to have a judgment if you default. (Consent judgment) Check your local court. They may have filed a lawsuit - in which you have the defense of "I paid this".

I have never have had to deal with a consent judgment so you may need to consult legal counsel.

Anyone else want to chime in?

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What does the "consent judgment" ageement say?

If you confess to the debt as "yours" and worked out payment plans and signed it, it will be fairly iron clad in court if you push to vacate.

If it was just an oral consent agreement and they got a default judgment without fact based witness, your signature, or written evidence, you got a good shot to vacate, if done right.

In retrospect, you should never sign a "consent judgment". Working pay agreement is fine, but generally, a consent judgment means you confess to the legal consequences of the default.

There are defenses: duress, failue to inform you of your due process rights, etc. but those are challenging defenses and you should get a lawyer.

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