I owe credit card company 1100.00 plus lawyer fee but I didn't have the money, so they cancelled the card and sent it to a Lawyer (not a debt collector). They sent me a summons (given by a police officer) and I sent them a Answer back saying that I would pay 100.00 a month and to not go to court. They sent me a Confession of Judgment saying they would accept 100.00 a month and I would need to sign Confession of Judgment and they would hold it without filing but that the Clerk of Court would end up putting it on the list for court. I did not sign the Confession of Judgment but have sent them a 100.00 check and they have deposited it. I can pay the balance next month when I get my Income check, but I was wondering how this affects my credit report and also will I still have to go to Court to say it is all paid for when it is all paid for. NC - not passed SOL - credit company did try to work with me but I couldn't come up with the money. Thanks in advance.
The lawyer you're dealing with likely specializes in collecting debts, especially those that require taking legal action, so they would be considered "debt collectors" under the FDCPA. I think you made a wise move in not signing the confession of judgment for them. You should be able to negotiate a payment plan in writing completely separate from a confession of judgment. You don't want a judgment on your credit report, and that's what you'll get if you sign the papers. Have you pulled your credit reports to see how the debt is currently listed? If it shows as an unpaid collection or something like that, then when you pay it off it will just show as a paid collection, which is equally damaging to your credit scores. And no, if you do decide to pay in full, you shouldn't have to go to court just to verify that the debt has been paid.
