Collections and Credit Question

Discussion in 'Community Discussion' started by taylorwilsdon, Aug 25, 2009.

  1. taylorwilsdon, Aug 25, 2009
    Last edited: Oct 23, 2012

    taylorwilsdon macrumors 68000

    taylorwilsdon

    Joined:
    Nov 16, 2006
    Location:
    Bay Area
    #1
    I need to figure out what's going to happen here, so any advice is appreciated.

    Here's what happened so far:

    Yesterday, I check the mail and there's a letter from UPS (who I don't use for shipping). I open it, and its not just an invoice, its a collections notice. For $22. Apparently someone used my account number from many eons to ship something (my # is the same number over and over with a "W" in it, so its very possible someone just guessed it). The account is super old, so it had my old phone number and expired credit card on it. This is why they couldn't charge it, and apparently why they couldn't reach me - which is bogus, because the collections notice made it to my house, why couldn't a notification?

    I called the number on the slip yesterday and nobody would talk to me today. It took 3 tries today, but I finally got through. She figured out what it was for (I didn't recognize it) and I said I'm not going to **** around, its $20, here's my credit card. She processed the payment then and there. She said she would send the invoice to my house so that I can dispute the charge and get my money back... I'm not holding my breath.

    But what does this mean? If they sent it to "collections" as the letter stated, will this show up on my credit score? Will I have to fight it?

    Help!
     
  2. OutThere macrumors 603

    OutThere

    Joined:
    Dec 19, 2002
    Location:
    NYC
    #2
    I've gotten a number of fake 'collections' letters in the mail trying to collect money for magazine subscriptions that I already paid for...they're magazines I'm subscribed to and have a lot of my personal information on them so they seem legitimate, but aren't. You might want to google around to see if the collections agency you just gave your credit card information to wasn't scamming you.
     
  3. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #3
    It won't show up on your credit score, it could show up on your credit report.
    If they sent you to collections they quite possibly reported you late. Did I understand that you do have a shipping account with them? With that you most likely needed to give them either a CC on file but I don't recall when I opened my account, them asking me for a SSN, which is primarily how they'd have to hit my credit.

    I would say that you need, since you paid for it now, to get the origin and destination information. You may have to have your lawyer send a letter asking for that information but try first.

    Suing them over $20 is silly, but if they did in fact hit your credit then you can dispute it through any one of the credit bureaus. One will make a decision and the others follow suit.

    I would however refrain from paying anything in dispute until you know about the collections company. I had something similar and I called the source refusing to give anything to the collector due to their unprofessional nature, it bothered me.
     
  4. taylorwilsdon thread starter macrumors 68000

    taylorwilsdon

    Joined:
    Nov 16, 2006
    Location:
    Bay Area
    #4
    I should have clarified, the debt was not sold over to a collections company - it was still within UPS its self (Accounts Receivable). I'm not going to sue them over $20, I would however over a black mark on my credit at their fault.

    I did open an account and at one point, there was an active credit card on it. I used to ship with UPS, but it was expensive and they started losing packages, so I gave up with them and just let it sit dormant.

    It was from UPS its self.
     
  5. fireshot91 macrumors 601

    fireshot91

    Joined:
    Jul 31, 2008
    Location:
    Northern VA
    #5
    Well, if they didn't send you an invoice, or any notifications, and automatically hit your credit report/score, then I would sue them.
    But if all they did was send you the "invoice" for $22, and you paid it, I wouldn't worry about it.
    I mean, I would, because to me $20 on something that I didn't even use/gain anything out of is a lot of money. But, I clearly don't know your financial situation, and if you're fine with paying $20 on something like that, and they didn't effect your credit score, then it's fine, right?
     
  6. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #6
    Ugh really? Please don't condone suing someone over $22. Learn the damn implications of the actions behind the bill. Unless you're damaged, and I don't consider $22 being damaged, there is no need to tie someone's time up with something stupid. However, if your credit was hit and it is beyond repair through the normal dispute process then that is truly being damaged because it affects you over time.
     
  7. Consultant macrumors G5

    Consultant

    Joined:
    Jun 27, 2007
    #7
    Check your credit report in a month, then dispute it if it's in there.
    AnnualCreditReport.com

    You can get a free one every year.
     
  8. taylorwilsdon thread starter macrumors 68000

    taylorwilsdon

    Joined:
    Nov 16, 2006
    Location:
    Bay Area
    #8
    In the grand scheme of things, I don't mind paying $20. The only issue here is if I go to open another credit card, or take out a car note, and they see a collections attempt; that's a problem.

    They did not send any invoice prior to the collections, which I believe (and am now inquiring to you all about) will appear in my credit history.

    It could mean I get a worse rate on a loan, which could cost me thousands.
     
  9. Consultant macrumors G5

    Consultant

    Joined:
    Jun 27, 2007
    #9
    Exactly. Plus lawyers typically cost $150 per hour and up.
     
  10. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #10
    Did you bother reading what I wrote? TWICE I stated that the damages would exceed $22 if they hit your credit.

    #1
    #2
    You have no idea how well versed I am on how much it will cost you over time should this hit your credit and adversely affect you.
     
  11. taylorwilsdon thread starter macrumors 68000

    taylorwilsdon

    Joined:
    Nov 16, 2006
    Location:
    Bay Area
    #11
    Right, I was agreeing but it does read sort of funny. I think I got confused trying to reply to multiple posts.

    For what its worth, I just ran my history at Experian and there's no sign of a ding yet, so I'll wait a month and check again.
     
  12. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #12
    My point is, more bluntly put, is a quest to sue over $22 is time wasted. A quest to sue over damaged credit that you have attempted to repair yourself in a reasonable amount of time is time well spent. If this bill drops your score under a certain threshold you'll wind up paying more in the long run.

    However, if your score is solid this would have little meaning, but it can still be damaging. You need to find out from the collections agency what their deal is and check state law. Some states you're required to notify the customer if you're going to adversely affect their credit. I found that out the hard way not too long ago. ;)
     
  13. taylorwilsdon thread starter macrumors 68000

    taylorwilsdon

    Joined:
    Nov 16, 2006
    Location:
    Bay Area
    #13
    Have no intention of suing (or even pursuing beyond their basic inquiry procedure) the actual shipping cost (the dollar amount).

    There was no notification on the letter I got that it would, or would not, affect my credit. While I live in California, the bill was sent to my address in Washington State; and I'm not sure if they require such a declaration.
     
  14. fireshot91 macrumors 601

    fireshot91

    Joined:
    Jul 31, 2008
    Location:
    Northern VA
    #14
    Lol no. I didn't mean sue them over $22. I meant find out why I was being charged for something I didn't buy/use, and then find a way to get it back.


    There's no way I'd sue for $22 and the lawyers/court costs are higher than that.
     
  15. mscriv macrumors 601

    mscriv

    Joined:
    Aug 14, 2008
    Location:
    Dallas, Texas
    #15
    The lesson here is don't leave anything open or "in limbo" that you are not using. In today's world of credit it's a simply fact that the cards are stacked against you. A simple mistake on a company's part can become a headache or even a nightmare on yours. The whole system is nuts in that we, the consumer, don't really have any control and there is no real policing of the reporting.

    A few years ago my wife bought something at a nationally recognized store with cash. The clerk asked her if she would like to sign up for their discount/rewards program. My wife frequents this store so she said okay. Well, the cashier makes an "error" and instead of signing her up for the rewards club, signs her up for a credit account with the store and even rings up the present purchase, paid for in cash, as a credit purchase on the new account. We don't find out about it until it hits collections and our credit report. It was like moving heaven and earth to get the situation reversed. I still wonder if we were victims of a thief who opened the credit intentionally and pocketed the cash my wife used to pay for her purchase.

    The point is be careful, stay on top of your finances, and monitor any open accounts you maintain with businesses. Don't just leave things hanging assuming everything is going to be okay. Remember it's simple for them to hit your credit with their "claim" that you are in the wrong. However, it's hours of work and lost time for you to defend yourself. The entire set up is guilty until proven innocent, just crazy.

    Best of luck with your situation.
     

Share This Page