Years ago there was an issue with a car I bought, out of spite I stopped making payments. The funding compan y came after me with there collections lawyer. well I have let the 1700.00 judgement sit on my credit for the last 3 years. I now wasnt to get any negative credit off my report so I can look at buying a home. The question is it legal for them to have charged so much intrest on the beginning amount? It is now up to $4,750 and what do you think I should offer as a settlement.
If you have done this your self what is the best way to go about getting this settled, I slipped when I talked to them the 1st time and said I was in the process of buying a house. opps on my part...
2006-09-22 02:59:28 · 5 answers · asked by Crystal A 2 in Business & Finance ➔ Credit
The out of Spite was because I was sold a lemon and the car seller did not stick to his side of the deal.
I was told if I offered to little then I would insult them and then they would not settle with me.
2006-09-22 03:22:42 · update #1
FYI I am in Massachusetts and they are in Colorado. I no longer live close to the lawyers or the orginal creditor.
Also they are just telling me there is intrest and not showing it in writing..
2006-09-22 04:15:19 · update #2
I don't know what you should offer as a settlement, this would be up to you. Just make sure you can pay it in 30 days that's usually all they give you once they've said OK. This isn't all interest, some of it is court costs, they pay it up front to get the judgment then tack it on, I would say offer the original amount owed, court costs, and half of what ever is left. $3000 and they'd probably take it. You can request in writing to them a break down of charges and they have to supply you with it. Whatever you do get it in writing first. Then pay them, you can go to the court house and file a motion for entry of satisfaction with their letter and your receipt of payment, the courts will issue a court date, you and the creditor need to show up. If the credit doesn't the courts automatically satisfy it. OOPs, I forgot you moved away, send copy of receipt and their letter to all 3 credit bureaus or give to your mortgage agent and they'll take care of updating your reports.
2006-09-22 05:06:24 · answer #1 · answered by NETTA M 3 · 0⤊ 0⤋
Well, you need to give a little more information about this. The "interest" that they say you owe, does it include late fees, charges, or NON court ordered interest? If so, then you do not have to pay it. They can not charge interest on a judgment without going to court to get the interest rate added.
Second, do they have a listing OUTSIDE the judgment on your credit report showing a balance? If so, this is also illegal and you can sue them. Once a judgment for a debt is put in place, they can no longer report that debt under anything but the judgment itself.
If you can afford it, tell them you will pay them the $1700 of the initial judgment. Do this in writing. DO NOT PAY unless you sit down with them and have them sign a 'satisfaction of judgment' form for you to submit to the court. If they are in a different state, then, in the same letter as your offer, state that they have 30 days (which is the law) to submit it after receiving your settlement amount.
Check your credit a couple months later to make sure they did what they said they would do.
2006-09-22 03:53:20 · answer #2 · answered by dishmal 2 · 0⤊ 0⤋
First of all, it's not very wise to stop making payments "out of spite", as you've undoubtedly figured out.
The creditor got that judgment and the interest rate it carries by going to court and winning their case, either because you didn't show up (and they won by default) or because the judge decided that you should pay the debt.
Contact your creditor. Offer them $1,700.00 CASH. They'll probably make you a counter offer which will include some of the interest due. Get the problem settled and off your back. It will probably still show up on your credit report for a while but it will indicate that the debt has been paid (judgment released).
Big mistake telling them that you want to buy some property...your creditor KNOWS that you can't buy it without paying them off. However, the minute you indicate to them that you want to pay it off, they'll know that the judgment is hindering something you want to do. However, if your original lender was a bank or a credit union, they DON'T WANT that outstanding amount on their books and are usually willing to consider all offers.
An interesting side to not-paying-your-debt issue..... your lender will send a notice to the IRS indicating that they gave you money and you didn't pay it back... which the IRS considers INCOME and will expect to see that amount on your tax return...as INCOME! Be careful who you don't pay back!
When you've agreed on a settlement amount, get it in writing from your lender. Take that letter with you when you apply for a mortgage loan. Your mortgage lender will PROBABLY include that amount in the amount you want to borrow, and will PROBABLY insist that they cut the check to pay off the settlement (just to be sure that it's done).
2006-09-22 03:15:30 · answer #3 · answered by paleblueshoe 4 · 1⤊ 0⤋
You have to pay off the entire debt. Once it is paid off, contact the various credit agencies that are reporting this debt. Send a written statement with proof that this debt was paid, and ask them to remove the item from your credit report.
2006-09-22 04:33:11 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Read some credit tips and more on this site to help you with it
2006-09-22 03:01:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋