QLD Credit Corp vs Chapter Two, where do I stand?

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1 June 2019
I came into financial hardship in 2015/16 and had a bad debt that was bought by Credit Corp, I tried to make my own negotiations on the debt when my financial situation improved and failed, they filed legal proceedings against me. I paid Chapter Two to negotiate a payment arrangement with Credit Corp prior to them seeking a Judgment and clear any errors on my credit report. Chapter Two negotiated a payment plan with Credit Corp with a very high interest rate that they would not reduce, but it seemed at the time the best course of action to prevent the long term effects of a bad credit report. I upheld the payment arrangement and had the understanding that Credit Corp would not exercise their lawful rights (I have an emailed letter stating that) which I took to mean; not to seek judgment or report to the credit reporting agencies, however they did seek and received a judgement . I have been complying with the payment plan for 20 months and only just became aware of the judgment reported on my credit report. when I asked them to remove the judgement because I had been complying with terms of the payment plan as per the original agreement they flat out refused, stating the agreement had changed when they received the judgment and that they had demanded full payment then. I had moved over 6 months previous to the judgement and I was never made aware of the demand for full payment by Credit Corp or Chapter Two that I paid to do my negotiations. Is there anything I can do about this ? I complied with the payment arrangement for almost 2 years and never once received a demand for payment in full. The Judgement came over 8 months after the payment arrangement was agreed to and I was never made aware that a judgment would be pursued irrespective of the payment agreement. It has caused significant harm to my credit rating and financial strain, albeit a valuable lesson was learned. I should have sought reliable legal advice at that time. Do I have any recourse against Chapter Two or Credit Corp for failing to talk all practicable steps to inform me of the pursuit of judgment ? I have emailed Chapter Two with my concerns with no response. It seems I paid a significant amount to avoid a Judgement being brought against me which happened anyway!

Rob Legat - SBPL

LawTap Verified
16 February 2017
Gold Coast, Queensland
You'd need to look very carefully at what was agreed at the time the arrangement was made. There's a difference between agreeing not to enforce or pursue, and registering a judgment. If they only agreed to the former, it might be the case that you've misunderstood that as agreeing not to register the judgment.

Then there's the consideration of the interest rate you mentioned. Once judgment is received interest can only be charged pursuant to the Civil Proceedings Act 2011 (Qld) which currently sits at 7.5% p.a - regardless of what interest rate was chargeable under the credit contract. Once judgment is obtained, it ceases to be a credit contract and becomes a judgment debt which is a different nature of debt (and therefore the interest rate under the contract ceases to be of any effect).