3 surprising things turned over to collection services.

Once a collection agency announces that you have accounts or debts that are unpaid, to the three major credit reporting bureaus, your credit rating is in jeopardy. Reporting your debt is one of their best weapons in getting your attention. They count on your fear of bad credit to entice you to pay them.

Unfortunately, even if you do pay them, a debt collection agency is not required to remove negative information, and their statements will stay on your credit report for 7 years. Working out payment plans or other alternatives before your debt is given to a collection service is always preferable.

While we often here stories of medical bills or credit card debt being sent to collections, there are many other types of bad debt that you may be surprised to find out is being given to a debt collection agency and putting your otherwise good credit rating at risk.

Here are three surprising things that can be turned over to a debt collection agency if left unpaid.

Unpaid library fines.
The library offers so many services to the public, but what you borrow must eventually come back. In Pennsylvania’s Allegheny County, for example, most libraries offer you many chances to pay off your fines, even with a repayment plan. However, if a patron of the library didn’t pay off the fines and continued to owe over $50.00, their fines would be given to a debt collection agency, in most cases.

Unpaid school lunch bills.
The Augusta Chronicle reported earlier this year that the Brantley County school board would use collection services to recoup money lost on delinquent school lunch accounts. The newspaper quoted the school as saying the amounts owed ranged from a few dollars up to nearly $150.00.

Unpaid utility bills.
Having the lights turned off for non-payment is bad enough, but the hit you take on your credit score adds an additional sting. Utility companies will use a debt collection agency to collect unpaid utility bills; an action that could end up stuck on your credit report.

 

3 things turned over to collection services
Be sure to pay the lunch lady!
 
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