Expert: Charles W. Field - 2/7/2006

Question
Hello... I think you might find this question interesting.  I was recently sued by a bank for $109.  Instead of going to court I mailed the bank a money order for the full amount along with a short letter asking that the money order be used to settle the matter.  I didn't recieve a response in writing, however I did manage to get a signed report from the NCPS stating that the bank had reported the account as "Paid and full",  and on top of that the money order company reported the money order as cashed by the bank.  More than confident the issue was settled, I did not go to court.  (The documentation the court had sent me told me I did not have to go to court if the matter is settled).   Of course a few months later I a recieved a letter in the mail stated a judgment has been issued against me.  I did some research,  and found out that after I had made the payment,  the bank added on an additional $109 and didn't bother to tell anyone about it.  They then went to court and showed the amount owed,  claiming this new $109 charge was really the original and that I had never paid it.  It seems that because the amounts were exactly the same the court fell for the ruse. The question is, is this illegal?  And if so how do I go about reporting it? And even if I do what court or judge would admit to falling for it in the first place?  Either way,  doesn't the reports from NCPS and the money order constitute more then enough evidence to prove what happend?  

Answer
You mistake was in not responding to the suit. Without something being filed by you, the court has no way of knowing that you had reached a settlement. Now you are going to have to file a motion to set aside the judment. You should consult with a local attorney about the procedure in your jurisdiction.