Judgment Interest and Settlement (possibly)

[lt2828]

I was served with a noticed and they are suing me for $7,600. I have spoken with an attorney (to try to settle) and he has not been able to negotiate the debt. They claim the debt is actually $8800, and that is what they want to negotiate on and not $8,800. My attorney says they will get a judgment for $7,600 and then add pre and post interest. The lawsuit claims a 29% interest, but I know courts here in California limit it to 10%.

Could someone explain to me how it is they will get a judgment of $7,600 and then magically make it grow to $8,800? He says they will get pre and post interest, but I'm not sure how they do that.

[frogger]

The pre-judgment interest will be at whatever your agreement is (29%), so that can be added up and until the day that you have court and the judgment is awarded. After the judgment is awarded, you will be charged the maximum amount of interest allowed by state law.

So even if they filed for $7600.00, at the court hearing, they can request for that $$$ to be modified to bring it up to a current status.

[lt2828]

Thanks frogger. They are asking for 29% interest. If I file a response is there anything I can appeal to the judge to provide a more reasonable interest. At 29% + late fees etc seems excessive usury rates. I realize it is in the contract, blahblahblah, but can it be argued to try to appeal to the judge's "reasonable" judgment.

[frogger]

Thanks frogger. They are asking for 29% interest. If I file a response is there anything I can appeal to the judge to provide a more reasonable interest. At 29% + late fees etc seems excessive usury rates.

No. You're screwed, blued, and tattooed with the agreement that you signed with them. It doesn't matter what it states... you signed it, and here's the real kicker:

It doesn't even matter if it is "legal" or not. You signed it, therefore it is enforceable.

I've seen this with my own eyes in court on some language in an agreement that was not legal. It sucks, but it is what it is.