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  1. #1
    Join Date
    Jul 2016
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    3

    Default Judgement Entered with Extremely High Interest

    My question involves collection proceedings in the State of: Missouri

    Thanks in advance for reading and for any advice given.

    I'm dealing with a judgement and I'm just today becoming aware of this due to some marital issues (we are not divorcing over it).

    We've paid on this $75 twice per month since August 2015.

    Am I figuring right that the interest is higher than the 150 per month we're sending?

    What options do I have here?

    Thanks again.

    I couldn't figure out how to doa screenshot so I copy/pasted from the Casenet site.

    JMT FOR PLT AND AGAINST DFT, PRINCIPAL AMOUNT $3,555.48, ACCRUED INTEREST TO THE DATE OF JUDGMENT $434.37, ATTNY FEES $533.31, COURT COST $88.00, TOTALING $4,611.16, PLUS COURT COSTS. THIS JUDGMENT SHALL BEAR INTEREST AT THE RATE OF 46.45000% PER ANNUM FROM THE DATE OF JUDGMENT UNTIL THE DEBT IS PAID IN FULL

  2. #2
    Join Date
    Oct 2014
    Posts
    7,962

    Default Re: Judgement Entered with Extremely High Interest

    On a judgement amount of $4,611.16, interest at 46.45%/year would work out to be $2,141.88/year, or $178.49/month. So yes, the interest is running up faster than $150/month you are presently paying. As for options, we know very little about the underlying debt, about the judgment, or your financial circumstances. Obviously, with an interest rate that high, if you can pay it off faster you’ll save a lot of money. If you can get a loan at a lot lower interest rate and pay off this judgment that would benefit you. Or perhaps sell some things that you no longer really need to come up with the money to pay it off (or at least pay it down a lot). Bankruptcy might also be an option for you.

  3. #3
    Join Date
    Oct 2006
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    16,207

    Default Re: Judgement Entered with Extremely High Interest

    Quote Quoting Taxing Matters
    View Post
    On a judgement amount of $4,611.16, interest at 46.45%/year would work out to be $2,141.88/year, or $178.49/month. So yes, the interest is running up faster than $150/month you are presently paying. As for options, we know very little about the underlying debt, about the judgment, or your financial circumstances. Obviously, with an interest rate that high, if you can pay it off faster you’ll save a lot of money. If you can get a loan at a lot lower interest rate and pay off this judgment that would benefit you. Or perhaps sell some things that you no longer really need to come up with the money to pay it off (or at least pay it down a lot). Bankruptcy might also be an option for you.
    I am actually a bit astounded that its permissible to charge an interest rate that high. Wouldn't usury laws normally prohibit that? Could that perhaps be a typo of some sort that might be corrected by the court if motioned to do so?

  4. #4
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    Jan 2006
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    Default Re: Judgement Entered with Extremely High Interest

    Quote Quoting llworking
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    Wouldn't usury laws normally prohibit that?.
    high interest rates in themselves may not be usurious.

    regarding interest on a judgment:

    2. In all nontort actions, interest shall be allowed on all money due upon any judgment or order of any court from the date judgment is entered by the trial court until satisfaction be made by payment, accord or sale of property; all such judgments and orders for money upon contracts bearing more than nine percent interest shall bear the same interest borne by such contracts, and all other judgments and orders for money shall bear nine percent per annum until satisfaction made as aforesaid.
    so, if the rate itself was within the contract and otherwise not unlawful, it can be enforced upon the judgment.

    while the rate of interest is extreme, depending on the original basis for the debt, it may or may not be proper. I would suspect that if a court was aware of the rate of interest, even if the defendant had not argued the underlying contract invalid based on an excessive rate of interest, the courts would have taken notice of the extreme rate and addressed it. Due to that, I suspect the rate is legally allowable.

  5. #5
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    Oct 2006
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    16,207

    Default Re: Judgement Entered with Extremely High Interest

    Quote Quoting jk
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    high interest rates in themselves may not be usurious.

    regarding interest on a judgment:



    so, if the rate itself was within the contract and otherwise not unlawful, it can be enforced upon the judgment.

    while the rate of interest is extreme, depending on the original basis for the debt, it may or may not be proper. I would suspect that if a court was aware of the rate of interest, even if the defendant had not argued the underlying contract invalid based on an excessive rate of interest, the courts would have taken notice of the extreme rate and addressed it. Due to that, I suspect the rate is legally allowable.
    Unless its somehow a typo.

  6. #6
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    Jan 2006
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    38,867

    Default Re: Judgement Entered with Extremely High Interest

    Quote Quoting llworking
    View Post
    Unless its somehow a typo.

    well, I suppose it could be. I would think it the op believed the interest to be excessive, he would have made an issue of it long ago. If a person does not read what they are provided and contest what they believe to be an error in quick fashion, sometimes they get to live with their complacency.

  7. #7
    Join Date
    Jun 2006
    Location
    Massachusetts
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    24,395

    Default Re: Judgement Entered with Extremely High Interest

    I am a words person and not a numbers person, and this is very much not my area of expertise. But does this mean anything to this situation?

    http://www.moga.mo.gov/mostatutes/st...800000301.HTML

  8. #8
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Judgement Entered with Extremely High Interest

    It could but until the source of the debt underlying the judgment is known, it doesn't mean a lot.

  9. #9
    Join Date
    Jul 2016
    Posts
    3

    Default Re: Judgement Entered with Extremely High Interest

    What happened was my wife took out a 2000 dollar loan without my knowledge. I didn't find out about it until the Sheriff knocked on my door with a summons. I couldn't get anyone to talk with at the lawyer's office so my wife called and set up the payment plan. They told her not to worry about showing up at court and that we could pay the amount we were being sued for plus fees. No mention of interest was ever made and they've refused to send us any statements showing how much we owe, interest or principle paid. We didn't even get a statement from the IRS showing how much interest they earned. This is why I hadn't put it together for so long. I thought we were paying off a straight amount of money. I got suspicious because they ignore all pleas for paperwork showing where we stand on this loan. Yes, we're stupid for believing this, not showing up to court or getting legal representation.

    Yes the amount of interest awarded is close to what the creditor was charging.

    We were stupid and complacent, but surely there's a way that the 1650 dollars we've sent so far on a 2k dollar loan can be taken into account. I get we are going to have to pay out the nose but if what I'm imagining is correct (don't know for sure because I have no paperwork to look at) then we owe around 5 K now. Would a credit councilor maybe broker a deal in your opinion? I could possibly sell my truck as a lump sum payment (about 2K). My Mom thinks I should get a lawyer.

    Thanks again.

  10. #10
    Join Date
    Oct 2006
    Posts
    16,207

    Default Re: Judgement Entered with Extremely High Interest

    Quote Quoting Garmar
    View Post
    What happened was my wife took out a 2000 dollar loan without my knowledge. I didn't find out about it until the Sheriff knocked on my door with a summons. I couldn't get anyone to talk with at the lawyer's office so my wife called and set up the payment plan. They told her not to worry about showing up at court and that we could pay the amount we were being sued for plus fees. No mention of interest was ever made and they've refused to send us any statements showing how much we owe, interest or principle paid. We didn't even get a statement from the IRS showing how much interest they earned. This is why I hadn't put it together for so long. I thought we were paying off a straight amount of money. I got suspicious because they ignore all pleas for paperwork showing where we stand on this loan. Yes, we're stupid for believing this, not showing up to court or getting legal representation.

    Yes the amount of interest awarded is close to what the creditor was charging.

    We were stupid and complacent, but surely there's a way that the 1650 dollars we've sent so far on a 2k dollar loan can be taken into account. I get we are going to have to pay out the nose but if what I'm imagining is correct (don't know for sure because I have no paperwork to look at) then we owe around 5 K now. Would a credit councilor maybe broker a deal in your opinion? I could possibly sell my truck as a lump sum payment (about 2K). My Mom thinks I should get a lawyer.

    Thanks again.
    I would strongly recommend that you get another loan from somewhere else to pay this off to stop the interest from piling up...or in the alternative, get a consult with a local attorney to see if there is anything that can realistically be done.

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