| Naples,
FL 34104 |
|
January
4 2006 |
| |
Unpaid
parking tickets, library fees and other fees may hurt your
consumer credit. A growing number of municipal fines and fees
including unpaid parking tickets, library fines, and trash
collection charges may damage your consumer credit score,
according to the Wall Street Journal.
Major cities, including New York, Chicago and Miami are hiring
private collection agencies to find small debts that are shrugged
off by consumers. Consumers are finding that unpaid speeding
tickets or even dogcatcher fines are spoiling their credit. The
Wall Street Journal said that it is up to each city to decide
whether such information will end up in a consumer's credit file.
A management consultant discovered his credit scores plunged to
"below average." The Wall Street Journal reported that
he had two late library books. The library turned over a $40 late
fee to a private collection agency.
The management consultant said the black mark affected his
interest rate on a home loan.
His children even were barred form using the library. Many
municipalities are being creative to find ways to boost revenue
without raising taxes and fees.
In New York State, a private collection agency was hired to pursue
overdue E-Z pass toll bills.
The Wall Street Journal in its article stated that since the Omaha
Public Library in Nebraska system hired a private collection
agency; it has collected more than $40,000, in fines and recovered
about $75,000 worth of overdue books and materials.
In Florida, some municipalities have used a private agency to
track down swimmers who fail to pay "beach rescue" fees
after they are rescued by lifeguards. I never knew you had to pay
a fee to be rescued.
San Diego courts have used collection agencies to collect fines
issued to people caught riding the trolley system without tickets,
according to the Journal.
Some cities are using collection agencies to chase down debts that
are over a decade old. This can lead to many surprises to
consumers. A consumer received a notice in the mail from a
collections agency requesting $53 for a parking ticket issued in
1993.The Journal reports that any bill more than 30 days old can
be reported to a credit bureau. Both TransUnion LLC and Experian,
two of the country's three major credit bureaus that compile
information about consumers' credit history include information
about overdue municipal fines and fees on credit reports.
Even though the amounts may be low any collections activity in a
credit file can do serious damage to a credit score.
Consumer experts say that a library fine reported to a credit
bureau can knock as much as 100 points off a credit score making
it difficult for someone with a previously good credit to get the
best on a loan.
The Wall Street Journal advised that consumers who want to get the
municipal fines wiped off their credit records should try to come
to an arrangement before they pay. A website, creditboards.com
offers sample letters to collection agencies and other suggestions
to help consumers get items removed from their credit files.
A Houston lawyer said he spent about 25 hours trying to get a $30
library fine removed form his credit file. He approached the news
media, contacted the Federal Trade Commission that enforces the
Fair Credit Reporting Act, but could not get the item removed.
So, pay attention to those unpaid parking and speeding tickets and
library fines. |
| |
Cynthia
Bercowetz (consumreye@aol.com)
Author/Consumer Advocate
738 Landover Circle, C 102
Naples, FL 34104
Phone : 239-455-1694 |
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