I was recently notified by a collection agency that I have a judgement against me for $1500 resulting from a rental agreement.

All this resulted from a one-year lease I signed with my then wife in 2005. We were divorced during the lease term, and she stayed in the house for an additional year-and-a half. I assumed that by not renewing the lease I wouldn't be held liable for anything after that first year. But apparently, she went on month-to-month without renewing the lease, which left the original terms (and my obligations) still binding. She then failed to provide a proper 30 day notice, as per the lease, when she moved out resulting in the $1500 judgment.

Since I didn't do anything to remove myself from the lease, it seems like I'm screwed on that part. However, the collection agency is now telling me that I have to pay the original judgment PLUS their 40% ($2100 total) to satisfy the judgment. I contacted the court (AZ Justice Court) to see if I could just pay the original judgment there but I can't.

What are my options here?

Thanks

Hello john:

You don't HAVE to pay anything. There's no law on the matter. IF you can negotiate a lower settlement amount, that's on you. Certainly there are legal fees and other costs added on. If you're a good negotiator, have at it.

excon

I was recently notified by a collection agency that I have a judgement against me for $1500 resulting from a rental agreement.

All this resulted from a one-year lease I signed with my then wife in 2005. We were divorced during the lease term, and she stayed in the house for an additional year-and-a half. I assumed that by not renewing the lease I wouldn't be held liable for anything after that first year. But apparently, she went on month-to-month without renewing the lease, which left the original terms (and my obligations) still binding. She then failed to provide a proper 30 day notice, as per the lease, when she moved out resulting in the $1500 judgment.

Since I didn't do anything to remove myself from the lease, it seems like I'm screwed on that part. However, the collection agency is now telling me that I have to pay the original judgment PLUS their 40% ($2100 total) to satisfy the judgment. I contacted the court (AZ Justice Court) to see if I could just pay the original judgment there but I can't.

What are my options here?

Thanks


Without addressing the circumstances and your defense - you would owe the Judgment amount, not the Judgment amount PLUS their commission.

It is to my understanding (as has been explained to me by the collection agent my company utilizes) that it is not legal to add fees to a judgment unless it has been specifically spelled out and agreed upon to by both parties prior -- in this case the lease agreement. There might be language or clauses stated in there with regards to legal fees incurred if they try to collect monies owed by the tenant(s).
When my company engages with a collection agent to collect a debt, we pay a percentage of the monies recuperated to the agent as a fee. Nothing is tacked on.

It is to my understanding (as has been explained to me by the collection agent my company utilizes) that it is not legal to add fees to a judgment unless it has been specifically spelled out and agreed upon to by both parties prior -- in this case the lease agreement. There might be language or clauses stated in there with regards to legal fees incurred in the event that they try to collect monies owed by the tenant(s).
When my company engages with a collection agent to collect a debt, we pay a percentage of the monies recuperated to the agent as a fee. Nothing is tacked on.


In any State I know the Judgment is for the total amount - there is no Statute that allows a Judgment for $X and then adds collection fees - the Judgment is for a set amount. That's it.

If there is a fee paid to anyone it is part of the total suit and included in the total Judgment.

Legal fees fall into that category - you are sued for, for example, unpaid rent, damages, late fees, Attorneys' fees and costs. The Judgment is for that total.

I would ask the collection company - again - what they are talking about and ask them to quote a law that allows this.