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Member
Posts: 14
Registered: ‎03-06-2009
0

Would not paying your storage unit get reported on credit score?

I now live in TX, but I have had a storage unit in New England and have been paying $200/month for it for 2 years.  My original plan was to bring it down here, but I have ended up replacing virtually everything there over these past couple of years AND I have paid nearly $5K.  It is definitely not worth it for me to keep paying this unit and I would like to just trash everything there.  What happens if I just stop paying and they sell my stuff off?  Would they keep charging me and eventually send the accound to a collection agency?  I would not want to affect my credit with this mess, but I am tired of paying so much for what is now worthless to me.

 

By the way, I no longer have the contract, so I am not sure what they are legally entitled to do under it.  I am sure they can legally sell my stuff, which I would happily let them do.  Anyone have any first hand experience with whether or not they would send this to collections? 

Epic Contributor
Posts: 22,398
Registered: ‎01-17-2008
0

Re: Would not paying your storage unit get reported on credit score?

You could always call and talk to them.  Don't just stop paying. 

 

Yes, I had a storage unit when I moved from TX to WA.  I didn't have a job and could not afford the rent on it.  They let my sister get some things out of it then they sold what was left to cover the arrears.

 

I guess what they got was enough because they never listed it on my CR. 

 

I would not take that chance.  Call them.

Visitor
Posts: 3
Registered: ‎07-15-2010
0

Re: Would not paying your storage unit get reported on credit score?

Yes. 

 

The storage facility has to go to court to get the lock off and your things cleared out, and the court action will appear on your report.  

Established Contributor
Posts: 720
Registered: ‎05-04-2007
0

Re: Would not paying your storage unit get reported on credit score?

[ Edited ]

I don't know about all states, but in many (most?) states, it is not necessary to go to court to initiate the lock-cutting and auction sequence. It depends on the specific storage lien laws in the state where the storage facility is located. Generally, facilities will do periodic auctions of storage units that are delinquent beyond the lien deadline. Money collected from the auction is applied to the balance due on each auctioned unit's account. In the vast majority of cases, the amount collected at auction is less (usually much less) than the balance due. If there is a remaining balance due after the auction, the account can be turned over to a collection agency.

 

Each storage company has its own policy regarding whether they turn accounts with uncollected balances over to a collection agency. I expect that if it is a national company or a regional company that operates a number of facilities, they would be more likely to use a collection agency. If it is a small company that only operates one or two facilities, they might not bother with collections, as the likelihood of receiving any income through collections is pretty small. If a customer has been unable to keep up payments on a storage unit containing their possessions, there's a reasonable chance that they may have defaulted on other bills and have lates and/or collections already on their report, so the threat of an additional collection from the storage company doesn't have much effect ...

Epic Contributor
Posts: 22,398
Registered: ‎01-17-2008
0

Re: Would not paying your storage unit get reported on credit score?

I agree with Revike. 

 

Read the fine print on your contract with the storage facility.  In my case, they did what they said would happen.  No court involved.

Community Leader
Epic Contributor
Posts: 26,262
Registered: ‎03-19-2007
0

Re: Would not paying your storage unit get reported on credit score?

Legal action and credit reporting are separate issues.  I will speaK only to credit reporting.

You have a legal business transaction with them.  If you go into arrears on payment, they have the right to report that to the CRAs,

A lot depends on whether they have a reporting account with the CRAs.    If they are a small mom and pop company, they may not.  However, if they are a regional or national chain, they probably do. They can report.  I cant speak to their business practices.

I agree with prior posts.  Call them and work out an agreement.  To simply just cease payment might not sit well with them.  If they do have a reporting agreement with a CRA, that is pretty good reason for them to report.

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