Don’t Ignore The Collection Agency!

April 5th, 2011

no way sign

Don’t Ignore The Collection Agency! I think most of us have had a dispute with a creditor, certainly minor ones. Who has not argued over a charge with a credit card company, a cell phone company, a retailer, or argued over a parking ticket. And sometimes we are so sure we are right we just don’t pay. And then we are so sure we are right, we ignore the mail that inevitably comes after the fact seeking payment. Big mistake.

Why is it a mistake to ignore collection agencies?

First, these people will never go away, ever.

Second, you probably do owe the money, whether you want to admit it or not.

Third, ignoring any problem never makes it go away. When has ignoring your taxes, your partner or spouse, your bills, your job or your health, ever made a problem go away?

Last, and most important to me, ignoring a parking ticket or small dispute with your cellular provider will only come back to haunt you and your credit score.

How bad does it hurt your credit score?

I have seen small collection accounts drive down credit scores 30-40 points, or more! Assume your credit score is usually a 731, which is respectable. But it drops to a 697 because of a $55 parking ticket that has gone to a collection agency because you refuse to pay it. It will cost a lot more than $55 when you try and get a mortgage! The higher rate you will pay because of a weaker credit score will penalize you more than you can imagine.


Collections accounts on your credit report are very serious. Don’t think that the doctor that you feel you do not owe for a certain test will forget about it. They all have policies to send your past due bills to a collection agency after a certain time frame (usually around 90 days).

Never ignore your spouse, your partner, your health, your taxes or your bills! Solve all problems as they arise, and life goes easier!

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Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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