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 9 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.


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