If an account is submitted to a debt collection agency, does it affect your credit?

[etalns]

The gym I go to said that my CC had been rejected a few months ago, which I doubt, and that for several months my payments have been overdue. In spite of this they have never stopped me when I went to the gym and asked me what was going on, nor did they ever contact me. Today I got a letter from a debt collection agency regarding what I owe. If I pay it off straight away, will it affect my credit?

 

[tfinch2]

You didn't check your statements to see if it was being paid or not?

 

[Midlander]

Originally posted by: tfinch2
You didn't check your statements to see if it was being paid or not?

You're kidding, right? Do you know anybody who would notice if an automatic charge was MISSING from their statement?

 

[acemcmac]

What would be wrong with talking to a manager at the gym and getting this straightened out??????

 

[BoomerD]

Originally posted by: Midlander

Originally posted by: tfinch2
You didn't check your statements to see if it was being paid or not?

You're kidding, right? Do you know anybody who would notice if an automatic charge was MISSING from their statement?

Well...you gotta make that payment don't you? I don't know anyone who doesn't go over their credit card statement very carefully every month...YES, it would be easy to miss an automatic payment one month, but certainly not EVERY month...

 

[etalns]

Originally posted by: acemcmac
What would be wrong with talking to a manager at the gym and getting this straightened out??????

I'm going speak to her tomorrow regarding it, but it seems it has already been submitted to the collections agency is why I am wondering.

 

[etalns]

Originally posted by: BoomerD

Originally posted by: Midlander

Originally posted by: tfinch2
You didn't check your statements to see if it was being paid or not?

You're kidding, right? Do you know anybody who would notice if an automatic charge was MISSING from their statement?

Well...you gotta make that payment don't you? I don't know anyone who doesn't go over their credit card statement very carefully every month...YES, it would be easy to miss an automatic payment one month, but certainly not EVERY month...

I didn't notice to be honest, I have so many subscriptions.

 

[Viper GTS]

If the account has already been turned over to a CA it may well be too late.

The only question is whether or not they've reported it to the CRAs.

If they have not (yet) you can pay it & be done. If they have you'll need to push for a pay for delete or go the dispute route with the CRAs.

The short version is if they've reported it it will most definitely hurt your credit, & you need to do whatever it takes to get rid of it.

Viper GTS

 

[tfinch2]

Originally posted by: Midlander

Originally posted by: tfinch2
You didn't check your statements to see if it was being paid or not?

You're kidding, right? Do you know anybody who would notice if an automatic charge was MISSING from their statement?

Most people would notice it. It's those that don't do anything about it and think they can get away with it.

 

[altonb1]

Originally posted by: BoomerD

Originally posted by: Midlander

Originally posted by: tfinch2
You didn't check your statements to see if it was being paid or not?

You're kidding, right? Do you know anybody who would notice if an automatic charge was MISSING from their statement?

Well...you gotta make that payment don't you? I don't know anyone who doesn't go over their credit card statement very carefully every month...YES, it would be easy to miss an automatic payment one month, but certainly not EVERY month...

I'm guilty of not reviewing all of my statements closely every month...

In a ny case, if it is in collections, your credit is already being impacted. However, you can probably get it straightened out by talking to the company that handles the billing. (not the collection company)

 

[etalns]

Originally posted by: Viper GTS
If the account has already been turned over to a CA it may well be too late.

The only question is whether or not they've reported it to the CRA's.

If they have not (yet) you can pay it & be done. If they have you'll need to push for a pay for delete.

The short version is if they've reported it it will most definitely hurt your credit, & you need to do whatever it takes to get rid of it.

Viper GTS

How long do they typically wait before reporting it?

 

[Viper GTS]

Originally posted by: Qosis

Originally posted by: Viper GTS
If the account has already been turned over to a CA it may well be too late.

The only question is whether or not they've reported it to the CRA's.

If they have not (yet) you can pay it & be done. If they have you'll need to push for a pay for delete.

The short version is if they've reported it it will most definitely hurt your credit, & you need to do whatever it takes to get rid of it.

Viper GTS

How long do they typically wait before reporting it?

If this is the first notice they've sent you're probably OK.

You need to send them a letter immediately asking for verification of the debt, that will delay further collection activity (including reporting to the CRAs). Send it CMRRR, & hold a copy + the receipt for your records. Also include explicit instructions not to contact you in any way except US mail (so they don't start interrupting your dinner).

My approach would be to send that to the CA, & see if you can work it out with the gym. Cut the CA out of the loop if possible.

Viper GTS

 

[BoomerD]

Al;so, check with your credit card bank, and get their input on this...WHY was the original charge denied? Was it improperly billed? Was there something about the charge that caused them to think it may have been fraudulent?