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does this ruin my credit

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suiken
Established Member

does this ruin my credit

When state farm sends you to collection does it ruin your credit already? or if you don't pay collection then it will ruin your credit?

 

I cancelled my state farm policy then next month I still got billed. So I disputed it with my credit card company. Then finally I got the cancellation check then I cancelled the dispute and it was re-bill. State farm told me to mail back the check. But I said I finally got the cancellation check and cancelled the disputed and it was re-billed. They still haven't respond yet so maybe it's already went to collection. So do I provide evidence that it was re-bill and I don't owe them money to collection? Of course I am not going to pay collection so what happens if I don't pay? do they take me to small claims court, my credit will get ruined if I don't pay collection.? this is a hassle , this state farm is very hard to work with. I have the email that I cancelled the policy and they replied to the email. thanks for the help

 

collection usually call right? not mail....is it around 30 days that collection will contact you after state farm send you to collection?

 

I got the email that I cancelled the policies, and then the still bill me. I even changed the zip code and expiration date on the credit card but somehow it still went through. Then a lot of time wasted email them and arguing with them. very stressful and annoying I don't owe them anything. wonder if I can sue them anything this state farm is horrible to deal with, such scam and crooks!!!

Message 1 of 11
10 REPLIES 10
Kirmie2010
Established Contributor

Re: does this ruin my credit

Depending on their policys, did you cancel through email? or just get an email confirmation that your request to cancel was confirmed?

 

Most companies will not and its in their policy let you cancel via email.

If this is what happen, they have high ground and you do owe the money.  If you cancelled via one of their approved methods, then just forward the email and all pertinent files/records that show you did cancel and what day, and the paper/record that shows when they rebilled.

 

I usually get a letter informing me I am going into collections, then a letter from the collection company then phone calls.

 

Even if it goes to collections you can get it removed pretty easily if you have proof you dont owe the debts.

Message 2 of 11
suiken
Established Member

Re: does this ruin my credit

yeah I did cancel over email.  I emailed them asking how to cancel can I cancel over email? he replied yes then asked about new policies quotes and try to keep me staying with their policy. I wrote back with quotes then couple emails later I said I want to cancel so I did cancel. so......I am good right? or they can dick around and say you still can't cancel via email.

 

as soon as they turn you over to collection, does it impact your credit already? or it will affect your credit if you don't pay collection agency (or already affected when I didn't pay state farm)

 

well I emailed them that I cancelled the dispute 20 days ago, they never responded maybe it's already in collection. but didn't get any letter about going to collection or anything.. or they are just slow. thanks for the help

 

actually there is another policy, cancelled it and still got billed next month. going to dispute that..what will they do?  I heard this is a billing issue so they can't send to collection agency is that right? well for this policy I never got the check so going to dispute it, another policy (house insurnce) they sent a check when I disputed, then I cancelled the dispute but haven't heard from them....for this one maybe they can send to collection? but not for another policy right?

Message 3 of 11
RobertEG
Legendary Contributor

Re: does this ruin my credit

Note that since you paid via a credit card, you have reourse to dispute as a billing related matter on a revolving line of credit under the Fair Credit Billing Act (FCBA) as opposed to the much more restrictive dispute process under the FCRA.

Message 4 of 11
takeshi74
Senior Contributor

Re: does this ruin my credit


@suiken wrote:

When state farm sends you to collection does it ruin your credit already?


Any derog will tend to have a major impact and hold ones scores and credit back.  That's why we advise addressing them first if one has derogs.  "Ruin" is an extremely vague term.  Whether or not one will be able to qualify depends on one's credit profile and not just the derog itself.  Best case is that one would qualify for less favorable terms.  Worst case is denial.  Either way, one is better off with a clean report than with a derog, generally speaking.

 


@suiken wrote:

or if you don't pay collection then it will ruin your credit?

 

It's whether it reports that matters.  Creditors and scoring models pull your reports and use the information in the report.  A paid collection generally offers little benefit.  The goal is removal where possible.  Ideal is to avoid derogs in the first place.

 


@suiken wrote:

collection usually call right?


Don't rely on "usually".  Specfics can vary.  You might get a call.  You might get a letter.  You might not receive any notification and find a collection on your report(s).

 


@suiken wrote:

yeah I did cancel over email.  I emailed them asking how to cancel can I cancel over email? he replied yes then asked about new policies quotes and try to keep me staying with their policy. I wrote back with quotes then couple emails later I said I want to cancel so I did cancel. so......I am good right?


Only if you have confirmation of cancellation.  What you've stated above sounds vague to me though it may still be worth pursuing this as a billing issue.  In future, always get confirmation documented so you have concrete evidence to present in case of issues like this.

Message 5 of 11
gibeon
Established Contributor

Re: does this ruin my credit

I had this same problem with Liberty Mutual late last year. They kept billing me for auto after I cancelled with them and switched he'd to a different insurer. Even after LM had confirmed they had received my docs of switching insurers.

Even after they claimed to have fixed it, they kept trying to charge my card on file.

It finally took an email to every executive of Liberty Mutual I could think of, stating my case, for someone to get back to me and fix the issue.
23 Open Bank Cards / 7 Open Store Cards / TOO many inquires / Mid/High 600's
Message 6 of 11
Mantis350
Regular Contributor

Re: does this ruin my credit

What has the total timeframe been since this all started?  If it's only been a month I highly doubt your file has been sent to collections.  Has it been greater than 60, 90 or 120 days?  Did you check on the billing periods for your policy?  Were you ever a month behind in payments?  You can always just call them and give them your account and they will be able to tell you if they still own it or if it was referred to collections.

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Message 7 of 11
suiken
Established Member

Re: does this ruin my credit

it's been a little more than a month.

 

can state farm send this to collection? a friend said they can't since this isn't car loan, mortgage etc. it's a billing dispute

 

one of the policy when I disputed on dec 9th...I got a letter from state farm on dec 15th saying that I need to pay before dec 30th or the policy will be cancelled. so for that I guess they can just cancel the policy ? can they send that one to collection? so far I am not sure if they send to collection or anything, they won't return my email. maybe best to pay everything up to date and go to small claims court. headache!

Message 8 of 11
Anonymous
Not applicable

Re: does this ruin my credit

There are varying factors as to whether this has gone to collections already, or will be in the future, or if this would show up on your credit reports. But yes, they can absolutely send you to collections if you owe them and the bill isn't paid. Doesn't matter that it's for insurance. 

 

You need to document everything you have done....payments made, email correspondence, etc. and call them and try to come to a resolution. They most likely won't take any further action if you are communicating with them about the issue. If they don't get any response from you and they feel you are ignoring the issue, then they are much more likely to take additional steps such as sending the account to collections.

Message 9 of 11
Anonymous
Not applicable

Re: does this ruin my credit


@suiken wrote:

it's been a little more than a month.

 

can state farm send this to collection? a friend said they can't since this isn't car loan, mortgage etc. it's a billing dispute

 

one of the policy when I disputed on dec 9th...I got a letter from state farm on dec 15th saying that I need to pay before dec 30th or the policy will be cancelled. so for that I guess they can just cancel the policy ? can they send that one to collection? so far I am not sure if they send to collection or anything, they won't return my email. maybe best to pay everything up to date and go to small claims court. headache!


Your friend is wrong.

Message 10 of 11
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