Legal Question in Credit and Debt Law in North Carolina

Collections/Credit

I have a credit card account that was sent to collections after getting behind 3 months payments. I have since paid lump sum of $1500. and have agreed to pay $100/month until paid. Balance is $3800. The collection agency wants me to sign an ''entry of judgment'' ? form but I do not want to do this. I have not been to court and am paying this bill faithfully and have been for four months. They have told me if I do not sign the judgment paper that they will take me to court. Do they have legal reason to sue me if I am paying on the bill as agreed. Thanks for your help.


Asked on 1/11/08, 1:11 pm

1 Answer from Attorneys
Lynn Coleman Attorney-Mediator

Re: Collections/Credit

You are doing the right thing by refusing to sign a confession of judgment. If you sign that, they would not have to go through the trouble of filing a lawsuit against you if you do not finish paying off the account. I question whether you truly have an "agreement" yet, if they are asking you to sign this.

The credit agreement probably said that if you got as far behind as you did, they could refuse to accept any more monthly payments, "accellerate" the debt, and cause it all to be due in one lump sum payment. This is why they could still sue you, even though you are making monthly payments on your balance.

Make sure to document all "agreements" in writing, and carefully review any letters they may send you which contain what they believe your "agreement" on the account is, in order to avoid any misunderstandings.

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Answered on 1/14/08, 9:30 am


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