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Has anyone ever fought debt fees in small claims?

Posted: Jul 14, 2010

Around 3 years ago I had a credit card that I put a pair of tires put on (about $180). I then promptly essentially lost my job and had a series of job hopping over the next year, going through about five jobs, none of them living up to their lofty promise of easy platform and lots of work. In keeping the soap opera-esque quality, I was also dating an alcoholic at that time, and after I lost my job I moved in with him so I could save on electricity, internet, cable, telephone, etc. Unless you've lived with an alcoholic, you can't understand what it does to you, but I had gotten to the point where I was losing everything. I swapped cars with a friend to keep mine from being repo'd, my house was going into foreclosure, etc., etc. Frankly, the tires were the furthest thing from my mind. Fast forward another year, after having the alcoholic put in jail for domestic violence, I finally came home. I spent the past year getting my stuff in order, working two jobs and catching up everything. My car has two payments left on it, my mortgage company loves me again, and I've got most things squared away. Except the tires.

The debt has been sold to a collection agency, no big surprise there as it has been three years. I assume somewhere in the mounds of junk mail there is notification of such (I have always had a habit of pulling out the bills and personal mail and trashing everything else). A sheriff showed up at my door and they are apparently taking me to small claims for the debt. I don't dispute owing the money for the tires, however it has now escalated to about $700 in 'fees'.

So my short question to a long story is, has anyone ever fought in small claims and won a reduction in the amount of fees applied?

;

My experience - Good Luck

[ In Reply To ..]

Sorry to hear about your past experiences; but happy to hear that you are now getting back to a better life.

Unfortunately, from my past experience, once the Collection Agency gets to the point of filing a Small Claims Case, they want every cent they can get from you. Also, unfortunately, the court has already heard every excuse imaginable from 20 million unemployed people who were not able to pay their bills – you are just one of them.

The court just goes by the facts. If you admit that you owe the money, they will rule in favor of the Collection Agency.

You have 2 options – both of which are about a 25-75% chance to work in your favor.

1. Contact the Collection Agency now. Tell them that even if they win, you do not have $700 and they will have a hard time collecting it (they cannot take your car or file a lien against your home, but they can contact your employer and file a wage garnishment – even if you are an independent contractor). Offer 50% ($350) now (if you can do that) and see what they say. Sometimes they are authorized to take less just to get if off their books; and cash in hand is better than chasing after you for the full amount.

2. If you opened the credit card on line, there is no “real” signature. If that was the only purchase on it and you have NEVER acknowledged that it is your card, you can demand that they prove it is your debt. First, you will need to “Answer” the Small Claims filing and request “any and all” documentation they have – including the original, signed credit application; and the original, signed credit card retailer sales slip. If they can produce this, you only delay the Small Claims Case. However, if they cannot produce this, they will probably drop the case because once you get into court, all you will have to do is say “This is not MY debt and they CANNOT PROVE it is my debt.” The judge will then rule in your favor. I know some people think this is like stealing, since you did get the tires 3 years ago, but since the Collection Agency is trying to get almost 4 times more than what you originally owe, I think that should be illegal also. If they were more reasonable, maybe more people would pay their past bills. I guess I see it as the “lesser” of two evils. LOL

Hope things work out for you.

Good Luck

I tried the settlement thing. They wanted $650 now. - sm

[ In Reply To ..]
At that point, I figured I might as well let it go to small claims because they can wait for their money and will have to quit tacking more and more fees on top of it. But I had wanted to check if anybody ever got a court to say that $700 for two tires was "unconscionable" (I think that's the official court word).

Sorry to hear that - Good Luck

[ In Reply To ..]

Bummer. I was kind of afraid they would not settle for less since they already filed the Small Claims Case, but I was crossing my fingers that you got a Collection Agency that was at least reasonable and not one of those blood-suckers who want to squeeze every dime out of the poor guy who, in most cases, honestly could not pay the debt when due.

I guess it might still be worthwhile to show up (if your schedule allows) in person and see if you get a reasonable judge, but I have really never heard of a Small Claims Judge lowering the amount of “late payment fees,” since they did not tack on those fees all at once; it was monthly fees that accumulated over 3 years, which the credit card company is allowed to do.

At the very least, you may be able to ask that you do not have to pay all the fees associated with filing the Small Claims Case. That can add up to quite a bit too, since it includes the filing fees and service fees that the Sheriff charges (that can add up to over $100 in some States). When people do not show up, I think the Collection Agency can automatically ask that those fees be added for reimbursement, but sometimes, if the Debtor shows up, the judge may decide they owe enough already and not require the Debtor to also pay those fees.

Good luck. At least you will finally be free and clear soon.

And for the record - Embarassed OP

[ In Reply To ..]
If when I called them they would have said $400 and call it even, I would have paid it on the spot. Considering they usually buy these debts from the original card company for maybe 10 cents on the dollar, so they got it for $18.00), even if they sent me a letter every day for the last year, generously assuming 50 cents for postage and a piece of paper/envelope), that still only amounts to $200, so they would still make a nice profit and I would be appropriately chastised.

I hope I get to set my own payment plan up. I'll send them $10/month for the next 6 years.

I had a medical bill from my daughter that I had - sm

[ In Reply To ..]
totally forgotten about. They gave it to the collection agency and when they called I offered 25 a month and was told they "cannot take that amount" and wanted my checking account # to deduct an amount they chose every month. DO NOT EVER GIVE THEM YOUR CHECKING ACCOUNT NUMBER!!!! At least I knew that much and told them I would send them 30 a month which is what I did. They never once sent me a update on teh bill, etc., as to the balance until it got down to 50 and then they called me to let me know. If you do end up having to make payments, keep track of everything you send them. Good luck.

I would definitely go to cout and lie to the judge. That is the - smart thing to do. NM

[ In Reply To ..]
x

I agree with asking for a settlement - see what they say nm

[ In Reply To ..]
nm

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