Legal Question in Credit and Debt Law in California

Re: Judgements & Credit Reporting

This happened to a client once in a San Diego small claims case. She had a dispute with a contractor and the contractor sued my client for $900. The judge awarded $100, which my client paid within a week.

It showed up on her credit report and cause problems when she and her husband were going to buy a vacation home. I do not know how it got reported, but the judgment was a public record.

You should demand that your insurance company settle the case. If they do not and a judgment is entered against you, then DEMAND that they appeal before paying the judgment. The appeal void the judgment and it is like a brand new casse. Then they can settlt the case and the settlement should include a dismissal of the lawsuit WITH PREJUDICE. That way, there will be no judgment against you.

Small claims judgments can and do end up on credit reports.

Re: Judgements & Credit Reporting

The FTC is correct. A judgment can and will appear negatively on your credit reports if the creditor at issue researches the public court records and finds a judgment against you. If your insurance company is telling you otherwise, you should immediately insist that they indemnify you against any possible judgments against you, and immediately pay off any relevant judgment awards, especially if you are looking to purchase a home in the near future. if you would like complete, prompt and affordable assistance in this matter, contact us today without delay.