Scaring your credit to get your attention

[jIM_Ohio]

In general this thread is about the bills which send you to collection agencies- like phone, cell phone and health care bills. IMO too many "contracts" are bad for the american consumer which takes credit seriously.

True story:

Has anyone noticed companies disguising themselves as collection agencies to get you to commit money to something?

About 18 months ago I ordered a magazine subscription to smart money from a co-worker's daughter selling it for girl scouts. At 10-11 months smart money sent the renewel letters to me which I ignored and sooner or later did not open (went straight to trash).

About a month after the subscription stopped, I received a letter which resembled that of a collections company- the company even had a simple name with "collections" in the title. It was trying to tell me I owed $15 for the 2009 magazine subscription which I had not renewed. If gave me a long distance number to call (not 800- just long distance) and I could type in a code to get it removed from the subscription list.

I considered this a devious sales tactic (I could have chosen to pay the bill and get the subscription when I called). Anyone else notice things like this?

I am also noticing more and more companies I do business with want to know enough information to report me to credit bureaus if I choose not to do business with them.

Cell phone contracts and medical bills are the two most obvious culprits. We had some medical bills in 2007, paid in full in Q1 2008, then I switched insurance plans (for 2008), then the old insurance did an audit and decided I owed MORE on the 2007 procedure which was paid in full. A full 6 months later I received a bill turning me over to collections from the doctors office (because a portion of bill to them is unpaid).

Another example is we have a home security system. The fine print of the contract is that it is a 5 year commitment which renews to another 5 year commitment when the first 5 years is up. We have a 6 month cancellation window in 2009 between June 2009 and Jan 2010. I don't think the price is worth what we get, but I cannot opt out of the "contract" now without being turned over to collections.

Anyone noticing similar sales trends?

[Ima saver]

I got a copy of a magazine that I did not order in the mail. Then, I got the bill for the subscription that I never ordered. It was a birds and blooms magazine.

[irmanator]

wow my daughter is worried because she got a letter about a magzine subscription she didn't want. (you get one free then cancel if you don't want the subscription.) they keep sending her letters that make her think they are going to give her a bad credit reference. She is 18. I told her they wouldn't harm her credit over a 15 dollar subscription they would just cancel it. Was I right?

[kork13]

Originally Posted by irmanator

wow my daughter is worried because she got a letter about a magzine subscription she didn't want. (you get one free then cancel if you don't want the subscription.) they keep sending her letters that make her think they are going to give her a bad credit reference. She is 18. I told her they wouldn't harm her credit over a 15 dollar subscription they would just cancel it. Was I right?

You're probably correct, but it's safer to just call them and insist that she be removed from their lists.

[Helena_Handbasket]

Originally Posted by Ima saver

I got a copy of a magazine that I did not order in the mail. Then, I got the bill for the subscription that I never ordered. It was a birds and blooms magazine.

The same thing happened with me with Lucky Magazine. I received a "Delinquent Account Status" notification in the mail informing me that Lucky refers delinquent accounts to a "nation-wide licensed collection agency." Well, I saw red. I called the phone number, asked for a manger (poor guy's name was Brandon) and read him the riot act about unprofessional business practices. At my request, Lucky cancelled my trial account" and sent a letter saying that no money was owed. I suggest you do the same to be on the safe side.

[jIM_Ohio]

The recorded message I got when I called stated that the company was not a collection agency and nothing us ever reported to credit bureaus.

[project15]

Ever since buying a house, we've been getting a ton of letters from life insurance companies that make it look like we owe them the balance of our loan. If you read more into the letter than just a quick glance, you'll see that it's just a tactic to get you to buy life insurance. The first time I got one, I was really shocked and thought that I owed something to someone, however, I'm used to them now and they just go to the shredder.