Citibank Judgment @ 21.6% Interest

Anonymous · ‎01-15-2008

Citibank got a default judgment for $2475 in Dec 2000 at 20.65% interest per year against my daughter. The judgment has dropped off CR due to SOL, but in WA state a creditor has 10 years to collect on a judgment and can have the judgment extended for another 10 years. Anyone know if Citibank actually pursues judgment extensions? If so, my daughter has no chance of paying the judgment becaused the accumulated interest currently amounts to over $8000.

Good news is that she never ever hears from them . . . no phone calls, no letters, nothing. She filed for BK in 2001, but defaulted and the BK was dismissed in 2003. Could it be that Citibank just wrote her off when they received the initial BK notice? I certainly don't want to stir things up by sending a GW letter if they have written her off.

Message Edited by dwarfess on 01-15-2008 09:59 AM

Anonymous · ‎01-15-2008

Legal limit on the judgment is 12% (it may have been the +21% on her card prior to the judgement)

STATE: WASHINGTON

INTEREST RATE

Legal: 12%
Judgment: 12%

STATUTE OF LIMITATIONS (IN YEARS)

Open Acct.: 3
Written Contract: 6
Domestic Judgment: 10
Foreign Judgment: 10

BAD CHECK LAWS (CIVIL PENALTY)
Lesser of check amount or 12% interest, collection costs up to $40. If taken to court, reasonable attorney's fees, 3 x value, or up to $300. Now have 6 years to enforce a bad check.

GENERAL GARNISHMENT EXEMPTIONS
Greater of 75% or $64 wk. (40 x state min. hourly wage).

COLLECTION AGENCY BOND & LICENSE

Bond: $6000 general, $4000 specialty
License: Yes
Fee:
- $100 - Investigation
- $100 - Original
- $100 - Renewable
- $50 - Branch Office
Exemption for out-of-state collectors: Contact state authorities. Out-of-state agencies may qualify for lesser licensing fees. Out-of-state collectors are no longer required to have resident office and instate trust accounts if they don't have instate client. Bond is not required if held in home state.

Anonymous · ‎01-15-2008

Thanks Lady - I guess I misinterpreted the rate on the judgment summary with the rate applicable to the judgment amount? Do you know whether the interest is applicable to $2475 Principal or $3409 Total Judgment?

Here's the details.

Judgment Summary

Principal 2475.74

Interest from 12/20/00 to 02/12/01 68.63

Costs 215.00

Attorney Fees 650.00

Total Judgment 3409.37

Interest Rate 20.65%

On the second page above the Judges' signature it reads: "It is further ordered, adjudged and decreed that plaintiff shall have judgment against the defendent for the sum of $2475.74 together with interest to date in the sum of $68.63, together with plaintiff's costs of $215.00 and the sum of $650.00 for attorney's fees, and said Judgment shall bear interest at the highest legal rate.

Anonymous · ‎01-15-2008

to the best of my understanding - $3409.37 and interst compounded annually at 12% (highest legal rate for a judgement) - still a lot btter than the 20.65%

dwarfess wrote:
Thanks Lady - I guess I misinterpreted the rate on the judgment summary with the rate applicable to the judgment amount? Do you know whether the interest is applicable to $2475 Principal or $3409 Total Judgment?

Here's the details.

Judgment Summary
Principal                                                         2475.74
Interest from 12/20/00 to 02/12/01                68.63
Costs                                                                215.00
Attorney Fees                                                  650.00
Total Judgment                                             3409.37
Interest Rate                                                      20.65%

On the second page above the Judges' signature it reads: "It is further ordered, adjudged and decreed that plaintiff shall have judgment against the defendent for the sum of $2475.74 together with interest to date in the sum of $68.63, together with plaintiff's costs of $215.00 and the sum of $650.00 for attorney's fees, and said Judgment shall bear interest at the highest legal rate.

Anonymous · ‎01-15-2008

I believe in most jurisdictions, the interest accrues from the date of the judgment until the date the whole amount is paid in full.

So if anyone out there is making payment arrangements with a creditor for a judgment, make sure that your monthly payment is amounting to more than the amount of the monthly interest that is added. Otherwise you will literally never pay off the debt.

Anonymous · ‎01-15-2008

Thanks Lady! 12 is certainly better than 21. I'm just hoping they purged her file when they received the BK notice in 2001. Since there's been no communication at all from them since then, I'm in a catch22 over whether to GW and try to settle for her or wait out the 10 years.

btw - SOL for collection of domestic judgment in WA (RCW 6.17.020) is 10 years + an additional 10 years if they file for an extension within within ninety days before the expiration of the original ten-year period.