The Cognovit rating is a special type of debt. For all debt notes, one party accepts one amount determined to another. And the note serves as written proof of the payment agreement. Thus, in case of delay of the manufacturer, the holder of the fake (beneficiary of payment) can sue the manufacturer for infringement in order to recover the money due. In other words, the holder of the note must take legal action, wait for the allotted time, about 28 days, and perhaps have a lawsuit before he can get a court order to get the payment. The Ohio Supreme Court, in Patton v. Diemer, 35 Ohio State 3rd 68, 70 (1998), stated that the law contains the following definition of a “consumer credit”: “consumer credit” means a loan to a natural person and the debts incurred are primarily for personal, family, educational or domestic purposes. The Revised Ohio Code, Section 2323.13 (E), provides that “the attorney`s arrest warrant for confessing to a judgment contained in an instrument executed on or after January 1, 1974 and resulting from a consumer loan or consumer transaction is not valid and the court does not have the power to render judgment on the basis of such an arrest warrant.” In about 3 weeks, the tenant called us to see if he could pay the verdict so that he could continue to manage his affairs. So, what is a Cognovit note? This is a special type of debt card that removes the right of creators to a trial, hearing and notification.
It waives these rights at the time of signing the note. Recently, we had someone trying to impose a Cognovit rating in a bailbondsman situation. But with a Cognovit note, the manufacturer waives its rights to blow the holder through all legal tires and allows the holder to sue with a judgment. So you can see how it can be very effective, and that has been the case for our customers. About 4 months after the duration of the rental, our client stopped receiving payment from the tenant and he immediately contacted us to move forward. We went to court and asked for the award to be admitted to the amount owed. The judge looked at me and said, “I haven`t seen any of them in over 25 years. I didn`t know people were still using it. After saying that, the judge signed the verdict. It was very critical for my client, because we didn`t have to wait to get the tenant of the property, nor did we have to wait to render the verdict. A note from Cognovit looks exactly like a debt certificate – it`s true, it looks a lot like a debt certificate, but it`s the Warrant of Attorney to Confess Judgement that makes it special. The note itself contains a special language that, as mentioned above, waives your rights, but more importantly, it allows any licensed attorney to appear on your behalf and confirm that they have received a copy of the note. And then they can agree on your behalf and without your knowledge that you owe the money.