The Complainant purchased a vehicle on February 16, 2006 that was financed by my client, the creditor. The Complainant failed to make the monthly installment payments and the creditor repossessed the vehicle and sold it at an automobile auction. After the sale there remained a deficiency...
balance that the creditor pursued through a court action. On December 23, 2008 a Complaint was filed with the Court of Common Pleas in Wilmington Delaware. A private process server personally served the Complainant on June 15, 2009.The Complainant had 20 days to respond to the Complaint and failed to do so. On November 9, 2009 an Entry Of Default Judgment was entered. The original retail installment contract provided for the Complainant to pay interest at the rate of 24% per annum. The Complaint and the Entry Of Default Judgment only requested interest at the rate of 10%. The total judgment amount was $7680.16 which included the deficiency balance of $5019.05, $1561.48 prejudgment interest, $987.08 attorney fees, and $113 for court costs plus post judgment interest at the rate of 10%. On March 8, 2013 a wage garnishment was issued to attach the Complainant's wages at her place of employment.The place of employment was served a summons that indicated the total amount due was$7567.61 plus interest from July 16, 2009 and court costs of $163. Pursuant to Delaware law the employer is to withhold 15% of the net disposable income. The employer forwarded $141.53 for the first withholding period and my office agreed to reduce the amount from $141.53 to $100 per pay period. The employer continued to withhold funds until March 26, 2015 at which time it ceased doing so. The employer was not directed by my office nor by my client to terminate the wage garnishment. At the time of the wage garnishment termination a $5460.01 balance remained. This balance remained because of the interest accrued over the six years since the judgment was obtained. Each receipt is credited first against court costs, then against unpaid interest, then principal, and finallyattorney fees. Interest only accrues on the principal. Attached are the court filings and a redacted payment history report.The Complainant contacted our office several times. We were able to reduce the withholding amount. The Complainant was Im happy about the accruing interest on the debt and offered a nominal amount to satisfy the remaining balance. My client refused to accept the nominal amount and countered with a sum less than the current balance at the time. I have no independent authority to accept the Complainant's offer. The Complainant was unhappy with my client's position and expressed great unhappiness.Our firm provides legal services and does not place outbound calls to debtors. As such our firm's policy is not to harass debtors; we supply the client's position to the defendant. The Defendant's unhappiness with the response can only be responded to by forwarding the request to the client for a decision. We did this in this case.If the Complainant offered a settlement to my client directly and my client accepted it, my office would have been notified and would have entered a satisfaction of the judgment and terminated the wage garnishment. In fact my client directed me to re-initiate the wage garnishment because no funds were received.Recently when the Complainant called my office she insisted that my office had terminated the wage garnishment. This was factually untrue and she would not accept this fact. It appears the place of employment terminated the wage garnishment. I have no knowledge of why they terminated the attachment.The Complainant 's desired settlement is that the garnishment be terminated . The Complainant has paid the balance due on the loan but has not paid the amount of the 2009 judgment amount nor has she paid all the accrued interest. I forwarded her request to my client on October 26 and I checked with them again on October 28. I received a response on October 29 that they are still reviewing the matter.Please call me if you have any questions.
The Complainant purchased a vehicle on February 16, 2006 that was financed by my client, the creditor. The Complainant failed to make the monthly installment payments and the creditor repossessed the vehicle and sold it at an automobile auction. After the sale there remained a deficiency...
balance that the creditor pursued through a court action. On December 23, 2008 a Complaint was filed with the Court of Common Pleas in Wilmington Delaware. A private process server personally served the Complainant on June 15, 2009.The Complainant had 20 days to respond to the Complaint and failed to do so. On November 9, 2009 an Entry Of Default Judgment was entered. The original retail installment contract provided for the Complainant to pay interest at the rate of 24% per annum. The Complaint and the Entry Of Default Judgment only requested interest at the rate of 10%. The total judgment amount was $7680.16 which included the deficiency balance of $5019.05, $1561.48 prejudgment interest, $987.08 attorney fees, and $113 for court costs plus post judgment interest at the rate of 10%. On March 8, 2013 a wage garnishment was issued to attach the Complainant's wages at her place of employment.The place of employment was served a summons that indicated the total amount due was$7567.61 plus interest from July 16, 2009 and court costs of $163. Pursuant to Delaware law the employer is to withhold 15% of the net disposable income. The employer forwarded $141.53 for the first withholding period and my office agreed to reduce the amount from $141.53 to $100 per pay period. The employer continued to withhold funds until March 26, 2015 at which time it ceased doing so. The employer was not directed by my office nor by my client to terminate the wage garnishment. At the time of the wage garnishment termination a $5460.01 balance remained. This balance remained because of the interest accrued over the six years since the judgment was obtained. Each receipt is credited first against court costs, then against unpaid interest, then principal, and finallyattorney fees. Interest only accrues on the principal. Attached are the court filings and a redacted payment history report.The Complainant contacted our office several times. We were able to reduce the withholding amount. The Complainant was Im happy about the accruing interest on the debt and offered a nominal amount to satisfy the remaining balance. My client refused to accept the nominal amount and countered with a sum less than the current balance at the time. I have no independent authority to accept the Complainant's offer. The Complainant was unhappy with my client's position and expressed great unhappiness.Our firm provides legal services and does not place outbound calls to debtors. As such our firm's policy is not to harass debtors; we supply the client's position to the defendant. The Defendant's unhappiness with the response can only be responded to by forwarding the request to the client for a decision. We did this in this case.If the Complainant offered a settlement to my client directly and my client accepted it, my office would have been notified and would have entered a satisfaction of the judgment and terminated the wage garnishment. In fact my client directed me to re-initiate the wage garnishment because no funds were received.Recently when the Complainant called my office she insisted that my office had terminated the wage garnishment. This was factually untrue and she would not accept this fact. It appears the place of employment terminated the wage garnishment. I have no knowledge of why they terminated the attachment.The Complainant 's desired settlement is that the garnishment be terminated . The Complainant has paid the balance due on the loan but has not paid the amount of the 2009 judgment amount nor has she paid all the accrued interest. I forwarded her request to my client on October 26 and I checked with them again on October 28. I received a response on October 29 that they are still reviewing the matter.Please call me if you have any questions.