My question involves judgment recovery in the State of: Alaska
My wife had a Discover Card account that went to a collection agency called Bishop White & Marshall. The original amount on Discover Card was $14000. She made an arrangement on the telephone last February, 2009 to make a payment of $4000 and $300.00 a month if she could pay the debt off interest free. The company agreed and mailed statements showing $0.00 interest and the declining balance every month less $300.00. Her August Bishop, White, and Marshall statement showed debt owed of $8700 with interest of $0.00. In September, the following month, she received a letter from Bishop, White & Marshall stating her debt balance as $10,000 plus interest of $1400.00. When she called them, they laughed on the phone and said they recieved a default judgement. When my wife checked court records, one had been filed but she was never notified. They had filed one in June and she was never notified. She made every $300.00 payment from February to the present. Can a default judgement be made if a payment plan had already been in place and was being followed to the T? This seems like a case of breech of contract. The default judgement was for far more than the amount owed in her June statement and in her credit report.