QUESTION
Can a collection agency change the settlement amount? How?
Asked on Aug 18th, 2015 on Bankruptcy - Illinois
More details to this question:
I went to a pre-trial conference today, basically to notify the attorney representing my creditor that I had already come to a settlement with the collection's agency. The attorney called the collection's agency and verified the settlement terms, wrote up the terms on a Stipulation to Stay Entry of Judgment form, and it was signed by the judge. Tonight I receive a call from the collection's agency stating that they had made an error, and the settlement is actually more than what was stated prior. Can they do this with the document I hold signed by both their attorney and the judge?
8 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It would be very hard for them to convince the judge to vacate the judgment. But they could try. In general, they would have to show a mutual mistake in order to re-form the contract. Judges, however, do have considerable discretion in this area. If you have any documentation about the real, original, settlement, your case is stronger if they should try to have the judgment modified or vacated.
Answered on Aug 19th, 2015 at 12:58 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, the settlement entered in the court records is final. Unless there was fraud on your part.
Answered on Aug 19th, 2015 at 11:11 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would think the entered judgement will prevail.
Answered on Aug 18th, 2015 at 9:33 PM
The creditor can ask the court to set aside the agreed upon judgment due to an error, but the judge will make the final decision.
Answered on Aug 18th, 2015 at 5:55 PM
Too late, they are bound by the Stipulation.
Answered on Aug 18th, 2015 at 5:04 PM
Real Estate Attorney serving South Jordan, UT
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James T. Dunn P.C.
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Ask the court to enforce the settlement agreement as written. There is case law to support your position. If there was a mistake, it was a unilateral mistake (one sided). These types of mistakes offer the one complaining no relief.
Answered on Aug 18th, 2015 at 3:50 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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I think they are stuck with the court approved settlement and the attempt to collect more is an FDCPA violation.
Answered on Aug 18th, 2015 at 3:42 PM