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Collection for less than $15

tony46231
Contributor

Collection for less than $15

I just got a letter in the mail from a local collection company asking for $14.XX.  This is apparently for property tax that I owe on a property that I sold a few years ago.  Not sure why the county did not contact me directly, but that is besides the point.  

 

I called the collection company and expressed my willingness to pay it.  I'm not going to argue over such a small amount of money.  I asked for a letter stating that this would not be reported to the CRA's.  They told me that couldn't give me a letter, but the CRA's won't report a collection that is less than $50.  

 

Is this true or should I be calling them back and demanding a letter from them before I pay it?

Starting FAKO Score: 08/16/13 - EX: 702 EQ: 694 TU: 702
Starting FICO Score: 08/19/13 - EX: ??? EQ: 700 TU: ???
Lender Pulls: 02/28/14 - EX: 736 EQ: 716 TU: 748
Closed on 04/25/2014 - Loving it!
Message 1 of 6
5 REPLIES 5
pizzadude
Super Contributor

Re: Collection for less than $15


@tony46231 wrote:

I just got a letter in the mail from a local collection company asking for $14.XX.  This is apparently for property tax that I owe on a property that I sold a few years ago.  Not sure why the county did not contact me directly, but that is besides the point.  

 

I called the collection company and expressed my willingness to pay it.  I'm not going to argue over such a small amount of money.  I asked for a letter stating that this would not be reported to the CRA's.  They told me that couldn't give me a letter, but the CRA's won't report a collection that is less than $50.  

 

Is this true or should I be calling them back and demanding a letter from them before I pay it?


Not true.  It's their decision to report it or not report, the dollar amount of the collection is inconsequential in terms of showing on your CRs.

 

However given the small dollar amount involved and the fact they haven't reported, I'd say you could probably go ahead and pay it.

 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 6
IOBA
Senior Contributor

Re: Collection for less than $15

Agreed.

 

The CA has the choice on what to report, or not report.  They could report for one penny.

 

The CA probably will not report for such a small amount if it's paid quickly.

Message 3 of 6
joltdude
Community Leader
Senior Contributor

Re: Collection for less than $15

If they do report it, you can dispute validity since it would no longer be a valid debt.... Keep your reciept
Message 4 of 6
mo6579
Contributor

Re: Collection for less than $15


@tony46231 wrote:

I just got a letter in the mail from a local collection company asking for $14.XX.  This is apparently for property tax that I owe on a property that I sold a few years ago.  Not sure why the county did not contact me directly, but that is besides the point.  

 

I called the collection company and expressed my willingness to pay it.  I'm not going to argue over such a small amount of money.  I asked for a letter stating that this would not be reported to the CRA's.  They told me that couldn't give me a letter, but the CRA's won't report a collection that is less than $50.  

 

Is this true or should I be calling them back and demanding a letter from them before I pay it?


Nope - the CRAs could report an amount as low as $0. They just report what the CAs and OCs give them.

 

Case in point - In the beginning of my rebuilding treck, I had a COLLECTION for $5 from a closed savings account that was apparently charged a fee at the end. Even better, it was double reported as 2 tradelines. I disputed both and they both disappeared. But, as you see, its certainly possible to have accounts report under $15. Sounds like your csr might be talking about company policy and not law. I'd tell them to send you in writing that they won't report it - and if they balk, remind them that the "law" says they can't report accounts under $15 so what is the harm :-).

Current Fico08 TU:654 EX:641 EQ:650 (01/31/2015)
Current Fico04 TU:??? EX:695 EQ:675 (01/31/2015)
03/2013 - TU:567 EX:490 EQ:540
Message 5 of 6
takeshi74
Senior Contributor

Re: Collection for less than $15


@tony46231 wrote:

Is this true or should I be calling them back and demanding a letter from them before I pay it?


Think of it this way -- what are you going to use as evidence if they don't follow through?

Message 6 of 6
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