Small Claim

[thelaw111]

Jurisdiction

California

Hello, there's a three-year-old small claim judgment in my credit report, after a period of hardship, I now have more evidence that could have overturned the judgment, if only I had them presented at the first hearing.
The collection agency bought the debt, which is now increased by 75%.
- What will be the best way to have a significant discount, considering the new evidence, do I really need representation or just solely calling is fine?
- I have evidence of harassment by the collections, would it be good to bring this up while negotiating?

I appreciate your knowledge and help.

 

[flyingron]

Your opportunity to do anything about this is long past. You can't appeal or submit "new evidence" at this point.

Debt collectors are by and large scum. You'll not get anywhere threatening them, and there's little chance that negotiation will result in anything unless there is money attached to it. Be very careful in your conversations with them. If you give them any credit card or bank information, expect to find that used against you regularly. As they have a judgment, they likely can drain that account.

Note that the Fair Debt Collection Act only applies to third party collectors. If the collection agency BOUGHT the debt, then they're not a third party. They're now the creditor.

 

[zddoodah]

The collection agency bought the debt, which is now increased by 75%.

The only way for a judgment to have increased by 75% over a period of three years is if the creditor has taken significant steps to collect relative to the size of the judgment. In three years, assuming no payments are made, a California judgment will accrue 30% interest -- e.g., a $1,000 judgment will accrue $300 in interest. Therefore, in order for that same $1,000 judgment to increase 75%, the creditor will have to have spent $450 on collection efforts and those efforts must be recoverable post-judgment costs (not all collection costs are recoverable).

What will be the best way to have a significant discount, considering the new evidence

Your evidence is of no relevance whatsoever at this point. The judgment was entered, and it is way too late for any sort of appeal.

do I really need representation or just solely calling is fine?

No one here is in any position to assess whether you're competent to negotiate on your own or whether you'd do better by hiring a lawyer. Keep in mind, of course, that any lawyer is going to expect to be paid, so unless a lawyer can negotiate a discount that is more than the fees he/she charges you, then you're better off on your own.

I have evidence of harassment by the collections, would it be good to bring this up while negotiating?

Depends on what happened that you describe as "harassment."

 

[mightymoose]

How long has it been since you used or made any payment toward the account?

 

[Zigner]

How long has it been since you used or made any payment toward the account?

Absolutely irrelevant. This is a judgment.

 

[zddoodah]

How long has it been since you used or made any payment toward the account?

What "account" are you talking about? The original post says nothing about any "account."

 

[mightymoose]

Absolutely irrelevant. This is a judgment.

It absolutely is relevant if concerned about credit reporting. Judgements are no longer reported by credit agencies, but payment toward the judgment may prolong the trme the delinquent account is reported.

 

[mightymoose]

What "account" are you talking about? The original post says nothing about any "account."

The one the original post obviously implies. If it wasn't an account of some type it wouldn't be in a credit report.
Not all of us require every detail to be spelled out to understand a situation.

 

[flyingron]

Judgments go on credit reports, regardless of how they were incurred.

 

[Zigner]

Judgements are no longer reported by credit agencies ...

Hello, there's a three-year-old small claim judgment in my credit report ...

 

[mightymoose]

Credit reporting agencies stopped including civil judgments a few years back. The negative mark on the credit report is likely the original delinquent account the judgment was based on, not the judgment itself.
If somehow a judgment is actually being retorted a request to the reporting agency can get it removed.

 

[PayrollHRGuy]

Judgments go on credit reports, regardless of how they were incurred.

Not since the three majors entered into the 2015 agreement that brought about the National Consumer Assitance Plan.

Home

The FCRA hasn't been changed so it isn't against the law for judgments to show on your credit report it is just no longer done.

 

[Zigner]

Credit reporting agencies stopped including civil judgments a few years back. The negative mark on the credit report is likely the original delinquent account the judgment was based on, not the judgment itself.
If somehow a judgment is actually being retorted a request to the reporting agency can get it removed.

The matter of the last payment on the account is irrelevant insofar as this poster's questions are concerned. The OP has a judgement against him/her and wants to know if "new evidence" will help get the amount reduced. The OP's questions have nothing to do with the credit reporting agency.

 

[mightymoose]

The matter of the last payment on the account is irrelevant insofar as this poster's questions are concerned.

Despite the question asked, it is worthwhile to point out that any activity on this could reset the clock on the negative mark on the credit report.
If the judgment is a few years old it is likely the actual delinquency is longer, and the OP may not be very far from having this drop off the report. It may be better to wait a bit before doing anything.
However, if regular payments have been made toward the judgment that clock may have already reset.

 

[PayrollHRGuy]

Despite the question asked, it is worthwhile to point out that any activity on this could reset the clock on the negative mark on the credit report.
If the judgment is a few years old it is likely the actual delinquency is longer, and the OP may not be very far from having this drop off the report. It may be better to wait a bit before doing anything.
However, if regular payments have been made toward the judgment that clock may have already reset.

And if the OP had won the lottery and paid off the entire judgment things would change as well. But what-ifs really don't matter.

 

[mightymoose]

It may not matter to you, but it should matter to the person with the negative credit marks. Reviving a delinquent account when it may be near expiration from the credit history would do lasting damage.

 

[Zigner]

It may not matter to you, but it should matter to the person with the negative credit marks. Reviving a delinquent account when it may be near expiration from the credit history would do lasting damage.

So your advice is to...what...WAIT and let interest build and build while ignoring the debt?

That is piss-poor advice.

 

[mightymoose]

I don't give advice.
However, one could negotiate the reported status of an account on a credit report. Failure to do so could result in long term bad results.

It you don't have anything helpful to add then feel free to not comment.

 

[Zigner]

I don't give advice.
However, one could negotiate the reported status of an account on a credit report. Failure to do so could result in long term bad results.

Now your non-advice is for the OP to negotiate how the item is reported, as opposed to simply ignoring it until it drops off, consequences be damned. That's an improvement.

It you don't have anything helpful to add then feel free to not comment.

You got it.

 

[PayrollHRGuy]

It may not matter to you, but it should matter to the person with the negative credit marks. Reviving a delinquent account when it may be near expiration from the credit history would do lasting damage.

But that has NOTHING to do with this OP.