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Home > Ask The Get Out of Debt Experts > Derrick McGavic Bought My Debt, Got Judgments Against Me and The Was Disbarred. Do I Still Have to Pay? – Mary

Derrick McGavic Bought My Debt, Got Judgments Against Me and The Was Disbarred. Do I Still Have to Pay? – Mary

“Dear Steve,

I recently became aware of the State of Oregon’s action against McGavic & Finney, and that he has been ordered to surrender his license to practice law in Oregon and close his office in Eugene.

Mr. McGavic has two judgments against me. One from August, 2006 and one from August, 2008. The original charge-offs from these were $10,215 and $2,407.47 respectively.

I have been making monthly payments on both of these judgments, but because of Mr. McGavic’s means of computing interest and additional charges, both of these accounts have morphed into much more than the amounts he originally purchased.

When I have requested a statement of account, I only receive the total amount owing with no breakdown of what was paid to the original principal and what was interest. And, of course, the balance he says I owe is more than the original amounts he purchased.

I have kept all correspondence and copies of all payments made to him since I began making payments in 2007 for the one and 2008 for the other.

I am close to paying off the amounts of the judgment that show on my credit report, and would like to know that since his office is being closed what my responsibility is regarding his inflated interest and fees.

Mary”

The Answer

Dear Mary,

For those that might not be aware, Derrick McGavic, Esq. entered into an agreement with the State of Oregon to pay $70,000 and surrender his law license over complaints about his debt collection law practice. More information is available here.

From your question it does not seem as if the issue is that you never owed the money and should have not received the judgments against you, but it is a matter of accounting for the money you have paid.

It seems the underlying judgments would survive the McGavic mess unless they are challenged for some reason, such as the validity of the debt.

Are the judgments an award for McGavic or for a debt buyer or creditor he was representing?

What was the original balance of the judgment, the amount of the monthly payment you were making and the interest charged on the judgment? If you can give me that information I can calculate where you should be.

Post your answers in the comments section below.

I’ll ask our resident FDCPA attorney to comment on your question as well.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Lvskatz59

    I was in a similar mess, had paid 2000 on an original debt to Capitol One of 1500.  I went to the DOJ, and got added to the class action suit, and absolutely demanded a full accounting of the interest and service fees from McGavic, in writing. It took forever, and they were wanting close to 8000 by the time he was shut down.  I then recieved a further demand for payment from partner K. Finney.  I again replied with demand for breakdown, and additionally, a HALT to the interest of 26% daily, until the issue was resolved.  In about 2 months I received a ‘Vacation of Judgement’ from yet another lawyer.  Took about 3-4 years, but it’s over!  DO contact the DOJ 

  • Coleysmum

    Mary-Did you ever find an answer ? I am trying to figure this out for my 70 year old Mother that I think was being scammed by this guy.

  • Coleysmum

    Mary-Did you ever find an answer ? I am trying to figure this out for my 70 year old Mother that I think was being scammed by this guy.

  • Gravegal

    Steve:

    Here is what I sent to the Oregon DOJ and his response.

    Mary — You will need to contact the attorney for McGavic’s former partner:

    Jet Harris
    Harris Law Group LLC
    245 E 4th Ave
    Eugene OR 97401

    County Lane
    Phone 541 434-2411
    Fax 541 683-3149
    Email jet@goodoregonlawyers.com

    Tony Green
    Director of Communications & Policy
    Oregon Department of Justice
    503-378-6002

    —–Original Message—–
    From: Mary [mailto:gravegal@yahoo.com]
    Sent: Thursday, April 14, 2011 1:28 PM
    To: Green Tony
    Subject: Derrick E. McGavic AVC dated 15 March 2011

    Dear Mr. Green:

    Today I became aware of the state’s action against Mr. McGavic and that he has been ordered to surrender his license to practice law in Oregon and close his office in Eugene.

    Mr. McGavic has two judgments against me. One from August, 2006 and one from August, 2008. The original charge-offs from these were $10,215 and $2,407.47 respectively.

    I have been making monthly payments on both of these judgments, but because of Mr. McGavic’s means of computing interest and additional charges, both of these accounts have morphed into much more than the amounts he originally purchased.

    When I have requested a statement of account, I only receive the total amount now owing with no breakdown of what was paid to the original principal and what was interest. And, of course, the balance he says I owe is more than the original amounts he purchased.

    I am close to paying off the original amounts as listed above, and would like to know that since his office is being closed what my responsibility is regarding his inflated interest and fees.

    I have kept all correspondence and copies of all payments made to him since I began making payments in 2007 for the one and 2008 for the other, and would be willing to produce them for the DOJ if necessary should some further legal action be pursued against him.

    Please advise, or forward my message to someone from your office who can assist me, or if would be best for me to obtain my own attorney.

    Thank you.

  • Gravegal

    Steve:

    Here is what I sent to the Oregon DOJ and his response.

    Mary — You will need to contact the attorney for McGavic’s former partner:

    Jet Harris
    Harris Law Group LLC
    245 E 4th Ave
    Eugene OR 97401

    County Lane
    Phone 541 434-2411
    Fax 541 683-3149
    Email jet@goodoregonlawyers.com

    Tony Green
    Director of Communications & Policy
    Oregon Department of Justice
    503-378-6002

    —–Original Message—–
    From: Mary [mailto:gravegal@yahoo.com]
    Sent: Thursday, April 14, 2011 1:28 PM
    To: Green Tony
    Subject: Derrick E. McGavic AVC dated 15 March 2011

    Dear Mr. Green:

    Today I became aware of the state’s action against Mr. McGavic and that he has been ordered to surrender his license to practice law in Oregon and close his office in Eugene.

    Mr. McGavic has two judgments against me. One from August, 2006 and one from August, 2008. The original charge-offs from these were $10,215 and $2,407.47 respectively.

    I have been making monthly payments on both of these judgments, but because of Mr. McGavic’s means of computing interest and additional charges, both of these accounts have morphed into much more than the amounts he originally purchased.

    When I have requested a statement of account, I only receive the total amount now owing with no breakdown of what was paid to the original principal and what was interest. And, of course, the balance he says I owe is more than the original amounts he purchased.

    I am close to paying off the original amounts as listed above, and would like to know that since his office is being closed what my responsibility is regarding his inflated interest and fees.

    I have kept all correspondence and copies of all payments made to him since I began making payments in 2007 for the one and 2008 for the other, and would be willing to produce them for the DOJ if necessary should some further legal action be pursued against him.

    Please advise, or forward my message to someone from your office who can assist me, or if would be best for me to obtain my own attorney.

    Thank you.

  • Jeremy

    Be sure to keep those records of all your payments. If a dispute ever arises as to the payoff amount those records will be invaluable. And if a collector tries to collect an amount that they are not authorized to collect that can be a violation of the FDCPA.

    As to your specific question about whether or not you should continue making payments, I would suggest you try to contact someone at the Oregon DOJ since they have an open case on this file. Here is their contact information:

    Oregon Department of Justice
    Financial Fraud/Consumer Protection Section
    1162 Court St., NE
    Salem, OR 97301-4096
    503-378-4320 (Salem)
    503-229-5576 (Portland)
    503-947-4333
    Toll free: 1-877-877-9392 (OR)
    TTY: 1-800-735-2900
    http://www.doj.state.or.us

  • Jeremy

    Be sure to keep those records of all your payments. If a dispute ever arises as to the payoff amount those records will be invaluable. And if a collector tries to collect an amount that they are not authorized to collect that can be a violation of the FDCPA.

    As to your specific question about whether or not you should continue making payments, I would suggest you try to contact someone at the Oregon DOJ since they have an open case on this file. Here is their contact information:

    Oregon Department of Justice
    Financial Fraud/Consumer Protection Section
    1162 Court St., NE
    Salem, OR 97301-4096
    503-378-4320 (Salem)
    503-229-5576 (Portland)
    503-947-4333
    Toll free: 1-877-877-9392 (OR)
    TTY: 1-800-735-2900
    http://www.doj.state.or.us

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I promise to keep your email safe and secure.

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After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


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