Got fines? Watch your credit rating!
July 11th, 2005 | by mbhunter |Saw this article on MSN Money (and a post on FiveCentNickel.com) about new ways that your credit score can be affected:
New Threats to you Credit Score
Local governments are getting collection agencies to go after delinquent fines. And when this happens, the collection agency puts a mark on your credit report!
I had known that health clubs could trash your score if you quit paying your contractually-obligated dues. But overdue library books and parking tickets were new to me.
Frankly, a debt is a debt, and if you legitimately owe it you should pay it. The businesses or the library doesn’t really care if you deliberately blew off the fine or just forgot, so I suppose that they should have recourse.
Can individuals do this if they’re owed money? What paperwork has to be in place? Say I lend someone $1,000 and expect it paid back, and they don’t. Can I threaten to report a derogatory entry on their credit history? And if I can’t now, is the day that far off until I can?
