Settled debt with bank, bank went to court anyway and claimed debt was never paid

Hello. I was sued by a bank for $109.44, so the first thing I did was to make sure they got paid. I sent them a money order for the full amount, along with a letter stating that it should be used for the settlement of my account. Also, the words "for settlement" were written by myself on the money order. After some time past without word from the bank I called the company that issued the Money Order and received confirmation that the order had been received and cashed by the bank. But, knowing how things go to took it an extra step. I wrote to the NCPS to request a report of the information contained in their files. Shortly after I received the report, signed and showing that the bank reported the account as closed and PAID IN FULL. Now here's the important part: The "Statement Of Small Claim Court And Notice Of Trial" that the court sends litigants in our district has specific instructions to both the plaintiff and the defendant. On two different lines it states that the neither plaintiff nor defendant needs to appear in court if the case is settled. It also states very clearly that no reply is required of the defendant, in other words its the plaintiffs duty to report the debt as paid to the court if a settlement is reached (and even if this weren’t true, they have to tell the truth in court). What came next should be obvious to anyone reading this. The bank showed up in court anyway and claimed the debt was never paid, and a judgment was issued against me. To make thing worse, a warrant was issued for my arrest for not showing up! (But don't worry folks, I made a call and got that warrant pulled, for now!) The question is, what can be done? Was it criminal for the bank to not report the debt as paid, if so who do I tell? Or how do I report it? What happens with the money I sent them? Is the debt now reversed, and should I sue them? Should I appeal the judgment? If so, how long do I have, because its been months since the judgment. And how do I go about doing that anyway? What about the trouble this has caused me? Forums are notorious for pessimistic answers so does anyone have any optimistic advice? I think that by keeping my receipt and getting that report from NCPS I've done more than the average person would do, so please no "you should have done this, you should have done that". Any other help would be appreciated. Thanks.

Bob545 said:

The question is, what can be done?

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Very simple. Contact the bank and show them the debt/judgment has been paid. Ask them to provide you with a signed 'Satisfaction of Judgment' and then deliver a copy to the court.

Was it criminal for the bank to not report the debt as paid

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No.

if so who do I tell? Or how do I report it?

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Moot.

What happens with the money I sent them?

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Gee, presumably they put it in with a lot of other money they have and then spend or invest it.

Is the debt now reversed

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No.

and should I sue them?

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No.

Should I appeal the judgment?

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No.

If so, how long do I have, because its been months since the judgment.

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Depending on the court, you usually have either 10 or 30 days from the date the judgment was rendered.

And how do I go about doing that anyway?

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You don't.

What about the trouble this has caused me?

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What about it??

Forums are notorious for pessimistic answers so does anyone have any optimistic advice?

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Nope. Just truth and accuracy.

I think that by keeping my receipt and getting that report from NCPS I've done more than the average person would do, so please no "you should have done this, you should have done that".

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Optimism: Good boy!! Good boy!! You done good!! Yippee!!