Account still open!!!

andersk08 · ‎01-14-2018

Good morning. I was going over my credit report and saw something on there from 3 1/2 years ago that is still not closed. It is a rental agreement for a musical instrument for my son. Granted I lost the instrument and have not been contacted by the company but I thought for sure it would be in collections by now. Still it stays open and the balance goes up to $19 a month. I was under the assumption that after 180 days it would close and the balance would stop increasing. Any insight?

Starting Scores: ( 9-9-14 )
Equifax FICO - 507 TransUnion FICO - 580 Experian FICO - 535
Current Scores: (10-08-14)
Equifax FICO - 552 TransUnion FICO - 639 Experian FICO - 609
ALL pulled from MyFico 3 Bureau Monitoring
Goal Score - 650 Across the board ( For Starters )

RobertEG · ‎01-14-2018

What are the specific, agreed terms in the rental agreement?

There are likely terms permitting the consumer or the business to terminate the rental agreement, and then specify how continued debt is then to be handled.

For example, does the agreement permit you to terminate the rental upon notice, either based on your decision to return the instrument, or, if lost, to separately pay for the lost instrument? I would presume that notice of termination of the rental would be separate from the issue of any obligation to return the instrument, or to pay for it should you not return it.

It would seem that you could not terminate the rental and yet keep the instrument, which would effectively permit your continued rental at no rental fee.

What are the provisions of your agreement regarding both termination of rental, and return of the equipment?

mitchblue · ‎01-15-2018

I assume since it's a rental the 19 a month is the fee.. Somehow the terms state that it goes up. Did you contact them about the lost instrument? Might seem better to pay them off over 19 every month.

FICO® 8 Scores 821 FICO® 9 Equifax 826 (Updated 02-7-23)

JVille · ‎01-15-2018

Don’t rental Musical Instrumentals come with insurance to cover loss? Once Lost was it reported and what options did the supplier give you to “Fix” the problem? This is either about to Screw your credit or has already done so. You need to stop the bleed, ASAP!

Anonymous · ‎01-15-2018

Did you ever report the instrument lost to the rental company? If yes, did the rental company charge you a replacement fee? If yes, did you pay this fee. If no to the first question, you may wish to contact the rental company and work out something.