When you are turned into a collection agency does that automatically go onto your credit report and effect your credit?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
When you are turned into a collection agency does that automatically go onto your credit report and effect your credit?
A phone servicer provider has been trying to collect monies for equipment that I have already returned. When contacting the company they had said it was received but can take up to three months to show up. It was sent back in 3 months ago, in the meantime they have sent it to collections. My husband and I have always had great credit and I would hate for this to change it. What should we do?
Asked on November 3, 2011 under Bankruptcy Law, Michigan
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you have been turned over to collection for unpaid debt to a third party collection agency most likely the late payments or missed payments have already been reflected in your credit report. If you find out later that your credit score has been negatively affected by the late or missed payments, there are credit repair companies that are in the market that can be retained to repair any negative marks as to the credit.
I would speak with the phone service provider about the situation you are in to see what can be done to deal with any negative comments as to your credit for the returned equipment in the interim.
Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.