Did you know that your credit also could
suffer from an unpaid parking ticket, a traffic fine you ignored or a
forgotten library book?
A growing number of local and state
agencies are using private collection companies to boost their
revenues. More than 600 public libraries from Eugene, Ore., to Broome
County, N.Y., turn unpaid accounts over to private collectors like
Unique Management Services. Cities and courts hire others, including
Municipal Services Bureau, to track down overdue parking, traffic and
court fines.
Many collection agencies
quickly report these overdue accounts to at least one of the three
major credit bureaus, and the black marks send consumers' credit scores
tumbling. Anyone who's had a spat with a phone company, health club or
an insurer turn into a collection knows that this is a pretty big club
to waive over the heads of consumers.
The lesson is this: Pay all bills and keep an eye on your credit report because you never know who is reporting and who is not.
BCG Blog Editor
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