[dekrist]

Hi, i have a judgment that was sent to collections. I need to settle this and am wondering if i should contact original creditor or do i have to deal with CA. this is over a musical instrument for my son which was to be returned at school at end of the school year, well it wasn't i found it in closet and believing it was turned in i told music store i wasn't paying for it, well they sued and i could not go so they got default judgement. was trying for home loan but they want this taken care of before they proceed. Any idea's how to handle this?. thanks

[Enigma]

Depending on your state, you may or may not have to deal with the CA.

But you will have to deal with the judgment creditor.

I would contact the judgment creditor if it is the music store. Tell them you found the instrument and ask if they will take it back and accept attorneys fees and court costs to make it go away.

Make sure you get everything in writing and include in the agreement that they will file a Satisfaction of Judgment by a certain date with the court.

Failing that, you will have to pay the judgment if you need to get the loan unless you have grounds to vacate the judgment.

[dekrist]

I think i'll try that, who knows maybe they are short clarinets anyway CA is right next door to them so if they don't bite then i'll go next door and deal with them.
appreciate the feed back though.

[Enigma]

In the mean time, draw down all checking and savings accounts and stop all direct deposits. You don't want a nasty surprise.

[dekrist]

Well here is what i did, I went to music store and asked to speak to owner, this person said im part owner so i proceeded to plea my case to him after a couple of minutes of my explaining and asking him to take clarinet and i would pay there legal fees and court cost they paid to sue me. and in return they could settle the judgement against me. He said well i'd like to help but we just bought this place and you have to deal with the old owner, who doesn't live here any more. so seeing where this was going i told them i would go next door and deal with the collections agency. So i go next door i tell them im there to settle judgement from the music store next door, the lady tells me that will be $830.35 I told her she was crazy and how did they figure i owed that much when my CR said i owed $640.00, she then told me that court cost, interest etc etc were added on to it, and how much did i want to pay them today, i said i am not paying anything until i see some itemized list of the extras. She then said well i can deduct half the interest charges. and report it as settled i told her no i need it reported as paid in full, I didn't think she was going to go for it without full price but to my surprise she did. I paid $730.35 which is still outrages but it was in collections for 3 years at 12% a year. so original debt $570.00 3 almost 4 years later $730.35. and i got receipt stating paid in full. Now should i wait until it is reported or should i dispute
now. also who reports it as paid to the court house? collection agency or music store owner.?

[jlynn]

The CA needs to report a Satisfaction of Judgment with the court. Then companies that pull pubic records will report same to CRA.

If you dispute it before a Satisfaction is filed, it will probably just be verified.

[dekrist]

Thank you jlynn

[drivel]

Originally Posted by dekrist

Well here is what i did, I went to music store and asked to speak to owner, this person said im part owner so i proceeded to plea my case to him after a couple of minutes of my explaining and asking him to take clarinet and i would pay there legal fees and court cost they paid to sue me. and in return they could settle the judgement against me. He said well i'd like to help but we just bought this place and you have to deal with the old owner, who doesn't live here any more. so seeing where this was going i told them i would go next door and deal with the collections agency. So i go next door i tell them im there to settle judgement from the music store next door, the lady tells me that will be $830.35 I told her she was crazy and how did they figure i owed that much when my CR said i owed $640.00, she then told me that court cost, interest etc etc were added on to it, and how much did i want to pay them today, i said i am not paying anything until i see some itemized list of the extras. She then said well i can deduct half the interest charges. and report it as settled i told her no i need it reported as paid in full, I didn't think she was going to go for it without full price but to my surprise she did. I paid $730.35 which is still outrages but it was in collections for 3 years at 12% a year. so original debt $570.00 3 almost 4 years later $730.35. and i got receipt stating paid in full. Now should i wait until it is reported or should i dispute
now. also who reports it as paid to the court house? collection agency or music store owner.?

Well done, I'd tell you to toot your own horn but, well you know........

[Enigma]

There are a lot of red flags here. I have a number of concerns that may affect the result you seek.

Number one, the music store is under new ownership. Since they were not aware of the judgment, they (new owners) are probably not the judgment creditor.

The collection agency is most likely not the judgment creditor either.

Even though the CA accept less than the full judgment amount and said they will report as being paid in full, did you get that in writing? If you did not then the CA is under no obligation to report as stated. The CA unless it is the judgment creditor cannot file a Satisfaction of Judgment with the court. They do not have that capacity.

You may want to consider stopping payment on the check, if that is how you paid. Then I would DV the CA demanding they prove who the actual judgment creditor is and then contact the judgment creditor directly.

I would also go to the court where the judgment was filed and get all the paper work associated with the case.

If the CA fails to respond or fails to prove their right to collect then they must delete the account from your CR.

Perhaps the former owner sold and has forgotten about the judgment.

[dekrist]

I do have a receipt stating in writing paid in full with account number. Its too late to stop payment i think they followed me out the door to the bank cause that night it posted on my checking account. As far as original creditor forgetting judgement i don't think he would, he didn't like me very much but i think he will report judgement as paid/satisfied. I'm hoping this all works out but not holding my breath. How many days do they have to report judgement paid?.
thanks for your input i appreciate it.

[jlynn]

Originally Posted by dekrist

How many days do they have to report judgement paid?.
thanks for your input i appreciate it.

You would have to check with the rules for the court that the suit was filed in.

You do understand that it is not the judgment creditor reporting the debt to your credit report?

[Enigma]

Lets assume the CA had the authority to settle the account for less than judgment calls for. The CA should contact the judgment creditor, advise them the account has been settled and the judgment creditor will file the Satisfaction of Judgment with the court.

Since you got nothing in writing, you screwed yourself.

If the CA did not have the authority to settle for less than the judgment amount, the judgment creditor may still be able to get a garnishment order against you.

[dekrist]

I probably did screw this up, i was thinking cause i got a written receipt and a printed receipt for this that would be good enough cause they say paid in full.
and i do understand who is reporting to cb's i have it in public records from the court and also the entry from collection agency. I'll call court house about time frame they have to report in. thanks again