debt collectors over $40 ?

kyro_02 · 12-09-2010, 06:02 PM

What are the chances?
I have an overdue notice of $40 to a hosting company that suspended my account, and I did not use it after they suspended it, normal company's will delete your hosting, which is what I thought would have happened by now.. but they kept charging me(I have to manually approve the money off the credit card)

and I got a nice email telling me if payment not finalized it will be referred to debt collectors

I don't mind paying the $40 (even though, I paid a month in advance!) so I should be square with them..

are debt collectors really going to worry about $40? lol

nstg8a · 12-09-2010, 06:19 PM

yup. and $40 definitely isn't worth the black mark on your credit history...

ratter · 12-09-2010, 06:22 PM

Video shops a while back started chasing customers for late fees etc, so I imagine if there is a few outstanding accounts it could start to add up to a fair bit of money, so yes there is every chance they will chase you up for it and you get a black mark against your credit rating

Baron.LSN · 12-09-2010, 10:04 PM

Related issue somewhat, some mug at my local video store has gotten out around 7 movies a few weeks ago, and they're still not back and I'm not sure where the situation will lead. Went and watched surveillance tapes, didn't know the person and I know for sure that none of my friends are responsible. Furthermore, the only people who knew the password are me and my fiancee... and it had been months since we went to the store, we couldn't actually remember it. Now, I'm seriously going to reject any attempt by the store to force me to pay replacement fees and/or late fees (I'm a student). I've heard of at least one occasion where the store had somehow stuffed up and put the videos as being lent to one account when it was to another... any advice?

flappist · 12-09-2010, 10:10 PM

Quote:

Originally Posted by kyro_02

What are the chances?
I have an overdue notice of $40 to a hosting company that suspended my account, and I did not use it after they suspended it, normal company's will delete your hosting, which is what I thought would have happened by now.. but they kept charging me(I have to manually approve the money off the credit card)

and I got a nice email telling me if payment not finalized it will be referred to debt collectors

I don't mind paying the $40 (even though, I paid a month in advance!) so I should be square with them..

are debt collectors really going to worry about $40? lol

Are they charging you after they have suspended it?
If so go straight to Fair Trading.

Kryton · 12-09-2010, 10:18 PM

Quote:

Originally Posted by Baron.LSN

Related issue somewhat, some mug at my local video store has gotten out around 7 movies a few weeks ago, and they're still not back and I'm not sure where the situation will lead. Went and watched surveillance tapes, didn't know the person and I know for sure that none of my friends are responsible. Furthermore, the only people who knew the password are me and my fiancee... and it had been months since we went to the store, we couldn't actually remember it. Now, I'm seriously going to reject any attempt by the store to force me to pay replacement fees and/or late fees (I'm a student). I've heard of at least one occasion where the store had somehow stuffed up and put the videos as being lent to one account when it was to another... any advice?

They hired them out to someone other than yourself - not your problem.
I had this exact same debate with my local video shop just the other day.
It was recently sold off and turned into a Network Video.
Having been to the previous shop for well over 10 years, we usually just say our number - not last time though.
They wanted names, phone numbers and street address as well and then asked me to make a password for the account so i didnt have to do this every time i rent a DVD.
He went on to say that if it didnt have a password and someone knew all my details and hired a video, it would be up to me to foot the bill.
He suggested that a password would keep me safe, to which i said that if someone knew ALL of my details and could use my account to hire, how is a one word password going to make it harder.
I also pointed out that anyone that was standing around me when i said my name and password could hear me and then use it, so it offers no protection at all, infact less than before.

Anyway, the O.P:
You need to sort it out with the company that claims you owe them.
They are obliged to keep records off all transactions and agreement so ask them to prove you owe them the money first - its not just up to you to prove you dont.
If you do owe them and dont pay them, it WILL go to the debt collector at which point, it is already listed on your credit file.
Even if you later pay it, that $40 will stop you getting credit for a lot of things and for those that will give you credit, youll be paying a higher interest rate than everyone else who has good credit.

AndrewR_AUII · 12-09-2010, 10:48 PM

Once it gets to debt collectors they'll start adding their fees and charges to it.

As Davway says...get them to prove that you owe the money...

UNR8D · 12-09-2010, 10:51 PM

No its not automatically listed on your credit file unless that company wants to spend the money to list a default against your name, If they are going to list a default then you will receive a letter stating you have 30 days to respond or it will be listed as a default.

you have the right to dispute your bill first via the company and then the ombudsman of the relative industry if you feel strongly enough about it.

If it does go to a collection agency yes they will chase you, yes you will have to pay and if you refuse they will then *if not done already* list a default against you after 30 days notice.

kyro_02 · 13-09-2010, 02:40 AM

it's all good, I was just curious, I would have (and already done so just now) paid the bill, just to avoid any problems in the future, and a good gesture, even though my account was suspended from the first missing payment, I still got charged for ongoing months + late fee's, which totaled just over $40

As I said, most hosting company's will not keep charging you, they will suspend your account until you pay for another month before they reactive it

BA Baracus · 13-09-2010, 12:33 PM

Quote:

Originally Posted by ratter

Video shops a while back started chasing customers for late fees etc, so I imagine if there is a few outstanding accounts it could start to add up to a fair bit of money, so yes there is every chance they will chase you up for it and you get a black mark against your credit rating

I copped that one. Got official legal letter from solicitors for debt collection of $18 in video store late fees from over 2 and a half years earlier. Was so old the video store no longer even exists or at least not in the location I visited it.

grandpa_spec_F6 · 13-09-2010, 01:00 PM

Video Ezy have debt collectors knocking at even a small outstanding late fee... they don't mess about these days. Obviously they try to settle things earlier but I was told they now refer all claims onto a collection agency.

A while ago, blockbuster just let you have the DVD once it reached $40 or so, once you paid the fine of course.

DJL351 · 13-09-2010, 01:10 PM

What's a Video Store?

Yes DB's will called for the samllest ammount these days.
Don't just sit back, or it will cost you more than you may realise.

aussie muscle · 16-09-2010, 05:13 PM

There was a thing in the paper the other week about telstra sending out bills for $0.0 along with a demand for payment!