web hosting service
Question
What happens when an account gets sent to collections?
I just got a letter stating that my account with a web hosting service was sent to collections. Evidently they tried to auto-renew my account using my old debit card, which had expired. I had canceled the web service, so I didn't realize I owed them $9.95, and now it's at a collections agency! Anyway, am I now doomed to have this on my credit report? Obviously I can pay this stupid bill, but I seem to remember that sometimes you shouldn't pay, or there's a certain way to pay so your credit score isn't damaged or something? How the heck does this work? To clarify, I may not have canceled the account before the end of the billing period. I thought I did, but I'm not sure now. I'd rather just pay the money and not have to go through disputing this.
3 months ago - 4 answers
Best Answer
Chosen by Asker
I would contact them and be very cooperative. Also, you can ask if they would remove the information from the credit report. A lot of times they will, and for this ridiculous amount they should. They've probably spent more on it now that $9.95. God this country is nuts.
by John D
3 months ago
Asker's Rating: 
Other Answers
you need to call the collection agency and say this is an invalid claim because you canceled your service before the end of billing period and there is no veracity to the claim. You must tell them you want them to clear this account off their records and report to the credit agencies that there was a flaw in their book keeping and to delete it off your credit report. this is how you go about doing this, you can also tell them you will notify an attorney and seek further action if they hesitate to clear this charge as it is unlawful you will seek further damages including court fees and attorney fees. If you tell them this they will listen to you because they don't want any trouble over this amount. Your credit will be okay as long as they contact the credit agencies. You may also need to inquire and tell the agencies yourself what has happened so that they can take them off all three of your credit reports without further delay.
by Rex- 3 months ago
Collections will contact you (if they have a phone number on file) and then since it's only 9.95, just pay it off. If you ignore them or refuse to pay, eventually it will go on your credit report. Try to contact the collections agency to pay.
by r_grayhat- 3 months ago
the collection agency will contact you and instead of the 9.95 you probly will owe $20 dollars or more now? they add a fee for collecting the 9.95. for themselves too?
by Robert W- 3 months ago