QUESTION
How do I know if this collection activity is legal?
Asked on Jan 27th, 2015 on Child Custody - North Carolina
More details to this question:
My ex-wife and I have entered into a written agreement on September 11, 2011 for me to pay her $8,000 in attorney fees that were awarded from a child support case, but the judge told both of us that we had to make an agreement on. I agreed to pay $50 per month and then on August 19, 2013 we amended the agreement for me to pay $100 per month. She has received and cashed every payment up until September of 2014 either by money order or Western Union. I didn't make the one for September, but in October 2014 made a $200.00 payment for September and October 2014. She hired a collection agent on 10/14/14 to collect this from me and immediately added it to my credit report in a letter dated October 21, 2014, it says the balance is $4,199.00 with almost $2000.00 interest added to it!
1 ANSWER
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I have never heard of anyone doing such a thing, and it is not a legitimate means for enforcement of a contract or court order. If there is a signed contract (signed, notarized agreement), then her remedy is an action for breach of contract. If there is a Court order that orders payment of the attorney fees (i.e., it is a document signed by the Judge), then her remedy is contempt. I don't believe that it is something that a debt collection agency can collect on. You should start by contacting the NC Attorney General?s office about this. You may also want to contact an attorney who deals with debt collections as part of his or her practice to get some advice. The penalties for improperly attempting to collect on debts can be severe.
Answered on Jan 28th, 2015 at 2:08 PM