Collection agency question

[boyRacer]

My brother cancelled his 1&1 account six months before its end. We faxed them the cancellation request as required and thought that was it. At the beginning of this year they sent him an email saying that his account is delinquent and if unpaid for they will report it to a collection agency. Unfortunately, by the time he saw read that email it was past the due date for the payment. So we told them we had copies of our cancellation request and never renewed the account, to which they said "oh ok we'll cancel your account."

today he got a notice from a collection agency that says he owes $24. 😕 is it worth disputing this? or just pay it off and move on and forget the hassle? but then again this would put a big blotch on his credit history even if it's only $24 right?

 

[Sluggo]

Just send the money, you will spend hours on the phone working it out, its not really worth it.

 

[boyRacer]

That's what I was thinking. But how much would it affect his credit history for the next seven years?

 

[olds]

I'd fax them proof that that you cancelled it. It could show up as a black mark otherwise.

 

[Sphexi]

It depends. You could pay the $24 just to get them off your back, and dispute it with the credit agencies. Fax them copies proving that you cancelled your account, and emails from 1&1 agreeing with that, and likely they'll remove it from your credit report.

You could also deal with 1&1, and see if you can get them to fix it, but likely they won't be able to and will continue to screw it up. I say eat the $24 and get the credit agencies to directly remove it.