Does referral to debt collection agency affect credit rating?

concerneddebtor_2

If a debt I owe gets dealt with a debt collection ageny or whatever name they are called, will it affect my credit rating?

Sorry if this has been dealt with before. Thanks to anyone what replies.

_Andy_

At that stage your credit will be shot anyway

fermi

Depends what the debt is?

If it is one where defaults are reported to the Credit Reference Agencies, then referral to debt collectors is one the major indications at which a default should be filed if they are going to do so.

If a default is filed where there was none before, then that would severely impact your credit report.

But as said, if you have reached that stage then your report may be "shot" already.

concerneddebtor_2

I received a parking charge from a private parking company and they said if I did not pay they would get a debt collection agency to get the money of me.

fermi

concerneddebtor wrote: »

I received a parking charge from a private parking company and they said if I did not pay they would get a debt collection agency to get the money of me.

OK. That sort of debt should never go on your credit file.

Only way that one could is if they obtained a County Court Judgement that you didn't pay. And that is not likely to happen.

If you want help with the ticket/collectors, then post on the ---> Parking Tickets, Fines & Parking board.

molerat

Then no All they are doing is getting someone else, probably sat at the desk next to them, to chase you for the alleged contractual debt. Not all debt is equal. The only way this would affect your credit record is if they took you to court, if they actually won and if you failed to pay within the time specified by the judge.

concerneddebtor_2

Thanks guys, much appreciated. I can now follow the advice of ignoring them with much more ease. Have a good day

Justaquery

I recently received a letter from a debt collection agency regarding an unpaid line rental on a broadband service on my former property. This is despite the broadband contract no longer being valid. I'm disputing the validity of the bill but would like to know if this will affect my credit score now and if so how could I resolve the issue?

Tixy

Justaquery wrote: »

I recently received a letter from a debt collection agency regarding an unpaid line rental on a broadband service on my former property. This is despite the broadband contract no longer being valid. I'm disputing the validity of the bill but would like to know if this will affect my credit score now and if so how could I resolve the issue?

It is likely to be affecting your credit files.
It will depend on which broadband provider and the agreement you entered with them, but most broadband providers do obtain the permission of their customers to share data with the credit reference agencies.

You'd need to get copies of your credit files from the 3 credit reference agencies to see what, if anything, has been recorded in relation to this debt.

If it is with a debt collection agent then it is quite likely that a default will have been registered on your credit file.

icebergx

I don't have anything on my credit records at the moment, but one agency did contact me about a water bill from 2007, which they say is outstanding. Could this eventually be placed on my credit file if it doesn't get paid.

Also, another agency contacted me about an outstanding congestion charge bill, from 2012. Would this fall under the same criteria as the parking ticket mentioned above?

As I mentioned, neither of these appear on any of the three credit agencies records at the moment.

Thanks.