Legal Question in Credit and Debt Law in Missouri

Re: Dispute over Judgment costs

My guess is that you didn't go to court. A "default" judgment was entered against you. With a default judgment, the lawyer just asked the judge to give him the $250 fee. The court approved it. If you do not contest the judgment, you'll be bound by the fee and by the judgment amount.

Under Missouri rules you can ask the court to set aside the default judgment if you have "excuable neglect" and a "meritorious defense." A meritorious defense could be that you differ about how much you owe (in other words: "I know I owe something, but not this much.") A reasonable excuse could be that your child was sick and you couldn't get to court that day. You file a "Motion to Set Aside Default Judgment Under Rule 74.05(d)" Your motion should state facts that establish the two factors above. Almost all defaults are set aside if the party files such a motion.

A $250 attorneys fee for showing up in court is probably excessive where the amount in controversy is less than the lawyers fee. I would make that point. An attorney is required to charge a reasonable fee (Mo. Rule 4-1.5). Among the factors considered in setting a reasonable fee are "the amount involved and the results obtained" (Rule 4-1.5(a)(4))

If I were you, I would send the attorney a letter telling him you are going to file those motions and that you are going to ask to have the judgment set aside. Tell him you will demand strict proof of his claim. Collection lawyers are not "trial" lawyers. They thrive on the settlement. Thus if you call the lawyer (not his assistant, clerk, secretary, or anyone else, but the lawyer himself) and tell him that you intend to put him through a strict proof in this case, but you would be willing to send him $50 more to settle the matter permanently, you will probably get what you want.

If you don't, it doesn't cost you a dime to file the motion to set aside, but you'll have to ask the clerk when the next "law day" is so that you can "call up" your motion. The clerk will give you this information, and you file a "Notice of Hearing" that tells the other lawyer (and the Court) that you are asking for a hearing on that date.

You show up, ask the judge to set aside the default, and if the judge agrees, there goes the judgment, and you are back to square one. The lawyer will now have to work to earn his fee, and will be more amenable to settlement. In a practical context, the lawyer IS the collection agency, and he has a deal where if he collects so much of the debt, he gets to keep somewhere between 30% and 50% of the fee. If you have already paid $250, I would think you could get him to accept a lesser amount rather than contesting your motions. In his view, he already has a judgment and he doesn't want to lose it. It works to his best interest to accept less money rather than lose a judgment. If you reach an agreement for another $50, or whatever, make sure that he files a "satisfaction of judgment" with the Court.

I hope this helps.