3 surprising things turned over to
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
credit report for 7 years. Working out payment plans or other
alternatives before your debt is given to a collection service is always
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
Be sure to pay the