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Collecting Interest without a Judgement?


punky
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Hello everyone,

I have been paying on a debt collection account since 2005. A JDB had bought a charged off credit card account of mine, and then found a local attorney that does debt collection. The account still had a year to go before it would outside of the SOL. I made an agreement with the attorney that I would pay 20.00 a month until the debt was paid. This was done without a judgement.

Just last week we asked for an accounting of what I paid so far, and it comes to about 800.00 because I have been paying since Sept 2005. I believe the original debt was around 1,600, however I would have to look at our money program for the exact details. Well we thought that since there was no judgement or paperwork that detailed attorney's fees or interest, that I agreed to pay, the 20.00 payment was going on the principle. We were told that I am paying interest also out of that 20.00, so I am not even close to paying this account off. I have been paying for over 3 years.

I wish I could make larger payments or just do a settlement with these people and pay it off, but I can't.

I would appreciate any thoughts or ideas someone could share on this.

Regards,

punky :)

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Did you get anything in writing at the time you agreed to pay off this debt? If not, then it's a hard lesson to learn, but for what it's worth, I would never agree to any terms with any CA unless everything was put in writing. If they refuse to do that, then you can refuse to pay until they put the terms in writing.

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Hi OMG,

Thanks so much for your quick reply. I actually went to an attorney who called this CA in my behalf, and the CA told the attorney that he would agree to 20.00 payments. The reason for my visit to the attorney was to have her help me with a debt validation. I had just started reading here, and didn't know too much about dealing with CA's. Well like I said it ended up with me agreeing to make the 20.00 a month payments. They originally wanted me to make 150.00 payments, and I couldn't do that, not even close to that.

I guess I was afraid and am afraid that if I raised too much of a fuss, they could get a judgement for what they want against me, where right now I am just making a small payment, but I totally understand what you are saying.

Regards,

punky

Did you get anything in writing at the time you agreed to pay off this debt? If not, then it's a hard lesson to learn, but for what it's worth, I would never agree to any terms with any CA unless everything was put in writing. If they refuse to do that, then you can refuse to pay until they put the terms in writing.
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well, did you really think they would accept payments over 80 months and NOT get interest?

The question is: what interest rate? JDB's cannot charge whatever they want and they cannot charge what the bank charged you. They can only get the pre-judgment interest set by your state.

If you did not get an agreement in writing from them accepting the payments as principal without interest, then....

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Since you've been making payments, you've actually reset the SOL on this. The SOL is from the date of last activity.

You best bet is to renegotiate the amount owed and then do a lump settlement. Can you sell anything? Pawn anything? Do you have a tax refund coming?

Otherwise, you'll never pay it off at $20 a month and you'll have to deal with these people for years to come.

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You are right swirlgirl,

I did reset the SOL on this. I wish I would have insisted that the attorney that I paid to help with this do debt validation. I got scared because the JDB hired this local collections attorney who sent me a summons letter, and I had been such a new visitor here, I didn't know a lot of things that I know now.

Your suggestion about doing a settlement is what I will have to do somehow. Thank you for your help!

Since you've been making payments, you've actually reset the SOL on this. The SOL is from the date of last activity.

You best bet is to renegotiate the amount owed and then do a lump settlement. Can you sell anything? Pawn anything? Do you have a tax refund coming?

Otherwise, you'll never pay it off at $20 a month and you'll have to deal with these people for years to come.

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