Legal Question in Credit and Debt Law in California

Questionable Figures

Last payment on a debt was in 8/02. The 8/02 statement shows the balance due was $4700 at the beginning of 9/02, at 24% interest. The 11/03 statement stated the balance due was $6000.

Judgment creditor claims in the default judgment docs that principle debt was $6000 as of 8/02 and added in 10% interest going back to 8/02 up through 4/05 when the default judgment was requested.

As I interpret the creditor information, the judgment creditor claimed $6000 as of 8/02, which included 24% interest accrual between 8/02 to 11/03, as well as 10% prejudgment interest from 8/02 through 4/05 ($1600).

Would this be considered a violation of the Fair Debt Collection Practices Act since it is a misrepresentation of the debt in legal documents (the complaint & declaration of interest)? Any basis to file a complaint with the FTC, AG, et al?


Asked on 1/10/06, 1:38 am

2 Answers from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Questionable Figures

It appears that you did not answer the lawsuit. Thus the amount of judgment is conclusive as to the debt you owe. Many credit card companies are exempt from the state usury laws. Unless agreed in writing (credit card agreement), state statute provides for 10 percent simple interest annually.

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Answered on 1/10/06, 2:16 am
H.M. Torrey The Law Offices of H.M. Torrey

Re: Questionable Figures

Once a judgment is rendered, and you did not file a motion to set aside or appeal, then the judgment amount is typically considered final. However, we may be able to legally assist you here once we get more background information. Contact us today for a free phone consultation.

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Answered on 1/10/06, 3:28 am


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