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Collections Law/Consent Judgement
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Question
I owed a dental bill for about 6 months and it went to collections. The attorney that contacted me, and I, worked out an agreement on payments. He sent me a Consent Judgement to get signed and notarized. I have 4 days to return this Judgment or else they will proceed with "collection." My first payment isn't due for 2 weeks.
I have 2 questions. Can't I just pay them without the "Consent Judgement" and if I do sign and return this, is it going to be on my CR as a "Judgement"
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 specifically 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. You can also get it written into the contract that the collection account be deleted from your credit report.
Basically, you can negotiate anything into a contract and they don't need the consent judgement but they like it because of the hammer it provides in collection.
If they hold firm, you could consider stalling if you can pay it off in a certain amount of time. You should be able to buy several weeks with "negotiations." Their option is to sue you in court. It will take several weeks to get a court date. You can likely delay that court date at least once. So can you pay it by then? Be advised you do play a little bit with fire because a court will issue you a judgement if they sue and you don't show up or you lose. Additionally, the amount owed can go up if they do file.
Finally, you should be able to negotiate a lower amount than the full balance as well. Some collection agencies take as little as 10-25 cents on the dollar but more commonly even taking 10-20 percent off the total may help.
Good luck,
Regan
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Answers by Expert:
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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