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Category: Consumer Protection Law
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I just got a copy of my credit report and found that First

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I just got a copy of my credit report and found that First Resolution Investment Corp. has a judgement against me for $1091 in May 2007. I found the closed court case on the county court website. They also tried to garnish wages in 2009. The credit report also showed a "hard" inquiry on March 12, 2012. I have no idea how many times over the past 6 years they have done this or why? My original intent was to write a settlement offer to try to get it marked as paid on my credit report, but after reading information online about rip-offs, their businees practice, and that they are not credited with the Better Business Bureau, I am wondering how to handle it. I know this is for a very old credit card, though nowhere does it state who the original debt was with. I guess this company buys charged-off account & then tries to collect on them?
Submitted: 5 years ago.
Category: Consumer Protection Law
Expert:  bkanswerman replied 5 years ago.
Yes, it is very common for creditors to sale debt to factoring companies for pennies on the dollar. Usually, these companies will settle out the debt. If they have a judgment against you, then they have the right to garnish your wages or levy your accounts.

It sounds like they obtained a default judgment against you. The complaint that they served on the original complaint that resulted in judgment should have information about who the original creditor was.

At this point, the judgment is accruing default interest. The judgment remains active for collection for at least five years from when it was entered, but can likely be renewed. The length of time that a judgment can be enforced varies from state to state, but most states allow the judgment to be renewed after the initial time period expires.

My suggestion is to look into settle out the debt. The amount of the debt is relatively low and if they bought the debt for a very low amount, then you may be able to settle it out for a reasonable amount. Your question was posted to the bankruptcy law list, so you may benefit from knowing that if you are intending to file a bankruptcy, the judgment and debt can be wiped out through the bankruptcy.

If you were not served with the lawsuit, then you may be able to reopen the case, but proving that you did not receive service of process can be difficult, and for the amount of debt that you are talking about it would probably be cheaper and quicker to settle it out. You may be able to negotiate with them to change how they are reporting the debt on your credit report.

I believe that I have answered your question. If you need further clarification, then please let me know.
Expert:  bkanswerman replied 5 years ago.
It looks like in Ohio, a party may renew the judgment within ten years. So they will likely have ten years to renew the judgment. See the statute below:

ORC 2325.18 Limitation.
(A) An action to revive a judgment can only be brought within ten years from the time it became dormant, unless the party entitled to bring that action, at the time the judgment became dormant, was within the age of minority, of unsound mind, or imprisoned, in which cases the action may be brought within ten years after the disability is removed.
Customer: replied 5 years ago.
Can you assist me in wording a settlement letter? I am of low-income, live in a mobile home (no property), & have children.
Expert:  bkanswerman replied 5 years ago.
Here is a some sample language that you can use which I modified from a letter that I found online. My suggestion is to call them first, as they may have an standard release agreement that they will want to use, and you can plead your situation with them better over the phone.

You definitely will want to get something in writing though if they do agree to settle the debt before you pay.

Your Name
Your Address
Your Phone #

Creditor's Name
Creditor's Address

Date Dear Sir or Madam,
Re: Account Number / Case information
I am writing to resolve my debt with your company. [describe your situation here, low income, no property, have children etc....]. I would appreciate any efforts your company is willing to take in order to help me resolve this judgment.

The amount I am proposing to pay towards full settlement of my debt is $xx. . Upon acceptance of this offer, you agree to release me from any liability on this judgment, report that the judgment has been satisfied, and remove any derogatory marks on my credit report.

If you find the above terms and conditions acceptable, please sign the attached letter of agreement and send me a copy. Upon receipt of this agreement, I shall forward you the agreed amount through money order.


Your Signature
Your Name
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