| Author |
 Topic Search  Topic Options
|
s_gunners 
Newbie
Joined: 04/December/2004
Location: Canada
Points: 3
|
 Post Options
 Thanks(0)
 Quote  Reply
 Topic: Screwed by State Farm
Posted: 04/December/2004 at 12:21pm |
I just had a question regarding collections agencies (this does not apply to student loans though) My problem is that I had car insurance issued under State Farm and my policy was cancelled (about 3-4 years ago) for non-payment. About a month ago I received a letter from a collections agency (D&B Collections) requesting payment (which I determined by calling was for the car insurance premium). The amount owing is only $200 but it is the principle, that 1. The cancelled my policy so I was not driving so I don't owe them anything.. and 2. This was at LEAST 3 years ago.
So I wanted to know if there is any kind of limitations on how long they can try to come after me for? Or If they would even consider taking a $200 debt to court. I want to know all my options availble and paying the debt is not one. It is simply a matter of principle not finance.
Thanks for the help.
|
 |
|
Sponsored Links
|
|
|
collywobbles
Groupie
Joined: 22/September/2004
Points: 45
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/December/2004 at 1:01pm |
|
The 'principled' thing to do would be to pay the $200. You owe
the money. They cancelled your insurance for non-payment, but
that would only have been after you fell a couple of months into
arrears. During that time, you were receiving coverage, but not
paying for it. Sorry, s_gunners, but you don't get something for
nothing.
Would they take you to court over $200? No, that's pretty
doubtful -- no money in it for them. Is there a statute of
limitations? Yes, but you're still years away from it.
They're just gonna keep dogging you until you pay.
In short, you owe the money. If you have it, pay it -- the sooner
you do it, the easier it will be for you. If you don't like it
and want a second opinion, try posting on canadainsurancefraud.ca --
you might find something more favourable there.
|
|
collywobbles
plural noun
colloq:
1. Pain or discomfort in the abdomen.
2. Nervousness; apprehensiveness.
Etymology: 19c: probably from colic + wobble.
|
|
kwelmm
Newbie
Joined: 06/November/2004
Location: Canada
Points: 702
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/December/2004 at 1:17pm |
s_gunners,
Your principles are pretty screwed up! For one, just because you were not driving does not mean you do not owe the money....for the time that your car was insured-you owe the money. State Farm would not be asking for money owed after the cancelled policy period. Point two--it doesn't matter how long ago it was--you still owe the money. State Farm may have written it off to a collection agency...that doesn't change the fact of money oweing.
How can you say that paying the debt is not an option? It is simply a matter of principle...that's right...it's a matter of principle so there is no other option or principle but to pay the money.
Just take what collywobbles and I have advised you to do and run...run as fast as you can to D&B collections with your money.
|
|
s_gunners
Newbie
Joined: 04/December/2004
Location: Canada
Points: 3
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/December/2004 at 2:01pm |
Hmmm... not the answers I wanted to hear... I know that being involved with collection agencies lowers your credit rating. But I do have a line of credit and mastercard which are paid off.. Does that cancel the negative effect that the collections agency may have on my rating?? In other words would I be able to get a mortgage if my credit was excellent (aside from the 1 collections issue)?
Thx.
|
|
collywobbles
Groupie
Joined: 22/September/2004
Points: 45
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/December/2004 at 2:09pm |
Not what you wanted to hear?
No, the bills you paid off don't cancel the collections issue out --
they just sit there side by side. The good news is the
collections probably won't seriously hurt your chances of getting a
mortgage. The bank will be more interested in your current and
future income than the fact that you missed one $200 bill for a few
months. Just go pay the damn thing and put it behind you.
|
|
collywobbles
plural noun
colloq:
1. Pain or discomfort in the abdomen.
2. Nervousness; apprehensiveness.
Etymology: 19c: probably from colic + wobble.
|
|
kwelmm
Newbie
Joined: 06/November/2004
Location: Canada
Points: 702
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/December/2004 at 2:10pm |
gunner, your credit rating would have been affected once the item went to collections. Sorry, I don't think there is such a thing as accounts in good standing cancelling the negative effect. That's a good thought though.
Some mortgage brokers will consider you with an item in collections...others will not. There are definite stipulations when it comes to these matters!
I wish I had a better answer for you.
|
|
s_gunners
Newbie
Joined: 04/December/2004
Location: Canada
Points: 3
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/December/2004 at 2:50pm |
So from what I understand the "damage" would have been done as soon as it was sent to collections. Perfect... Thanks for your help.
|
|
Islander
Guest
Joined: 07/October/2004
Location: Indonesia
Points: 498
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/December/2004 at 3:10pm |
|
Let me add this. Pay the bill, get it shown in the bureau as paid and add an anecdotal to it that suggets that this was an oversight, misunderstanding or whatever. As long as the report isn't riddled with those notations, you ought to suffer minimal damage.
|
|
|
|
|
What? Me, worry?
Alfred E Newman
|
|
blah
Senior Member
Joined: 18/June/2003
Location: Korea, South
Points: 101
|
Post Options
Thanks(0)
Quote Reply
Posted: 05/December/2004 at 1:46am |
I wish I owed $200. Come to think of it, I wish I owed $2000. I might even feel better if I owed $20,000. Dude, just pay the debt and stop sweating the small stuff  .
|
|
Friends don't let friends take Arts degrees
|
|
Ferren
Groupie
Joined: 17/February/2003
Location: Canada
Points: 248
|
Post Options
Thanks(0)
Quote Reply
Posted: 05/December/2004 at 3:20am |
For a small debt like $200, I imagine state farms will simply have a staffer send the claim forms to the courts in a year or so if they have not received payment. Whether you show up or not, they will get a judgement against you and the damage to your credit rating will be far worse than if you had declared bankruptcy. These small debts do not require lawyers and do not cost the company money to follow through on. They just charge you the costs.
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 05/December/2004 at 5:28pm |
Islander,
A "consumer declaration" with the words "oversight" will simply add insult to injury. If a person submits a consumer declaration stating anything that suggests "oh no, it was their fault, not mine" or "It was an oversight on my part and the account went into collections before I could attend to the matter..." etc.etc., it may cause further disruption from the credit seeking and ajudication side.
Consumer declarations should be installed in a credit report ONLY if there is specific issues that must be addressed.
Exxample:
A credit report that is cross-refering with another.. a consumer declaration can be installed for identification purposes.
If the content of the consumer declaration suggests that the fault of any derrogatory comments are the result of the "lender's" fault, then the common sense thing to do would be to prove the error and get it removed from the file completely rather than to file a consumer declaration with no note of inquiry or investigation into who is at fault. Otherwise, they are simply ignored and have no impact on the bottom line.
Johnny
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
Islander
Guest
Joined: 07/October/2004
Location: Indonesia
Points: 498
|
Post Options
Thanks(0)
Quote Reply
Posted: 05/December/2004 at 5:57pm |
You're right, Johnny.
It's just hard to get worked up over a $200 debt that was incurred fairly, ought to be paid and can be easily dealt with.
Yes, it will stay on the bureau report and I withdraw my earlier suggestion as having been tossed out without thinking. No serious lender is going to sweat over a $200 oversight, assuming it's rectified when brought to the consumer's attention. I believe that falls under the technical category of "s hit happens".
But the money is owed; the coverage was contracted and, whatever I think of insurance companies, and whatever the likelihood of having had a claim approved during the period the coverage was in place but the payment hadn't been made, the dam n thing should be paid and life should then go on.
Next topic?
|
|
What? Me, worry?
Alfred E Newman
|
|
Screwed by State Farm