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Collections Law/Is Agreed Judgment The Only Way?

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Expert: Regan Shinski - 1/15/2010


Question
I have a credit card debt for $15,300 which is a little under 4 yrs old, so the SOL has not been reached. I was sued by the collection agency and called them, and they agreed to accept $50/mo. from me. I told the lawyer I would need in our written agreement a statement that they are withdrawing the lawsuit and agree not to file a future lawsuit, provided the payments are made on time. He agreed. However, in talking to his assistant today, she said they're preparing the documents for an agreed judgment, and checked with the lawyer and he confirmed it. I tried to talk to him, but he hasn't called me back.

Should I insist on them simply withdrawing the lawsuit, as we originally discussed, or is an agreed judgment the only way that this can be resolved? I have heard that sometimes agreed judgments are entered as judgments anyway, even if all payments are made on time, and I would prefer not to have to enter into an agreed judgment if it's not necessary.

Thanks!

Answer
Hello Neil:

This is not an overly common practice but I would try and avoid it if possible.  It is a filed agreement with a court.  I have heard and seen several of these show up on the credit reports even if payments are made on time.  At the very least, you should get it written very speifically into the agreement that if you make payments on time, it will not be reported on your credit bureau and that the creditor is responsible for all cost and damages to correct it if it is improperly reported on your credit files

Good luck,
Regan

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

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