Got a collection mail for gym fee. Looking for suggestion?

[viterbi]

First, a little bit background of me: male, in early 30s, in good financial conditions, earning around 130K per year. I am always very careful of about my credit history, never missed a payment to credit card, car loan, utilities company. I check credit report regularly and the score is always at the high end of 700.

 

However, chocolate still happens. One year ago, I made an unfortunate decision of joining a nearby gym before checking any Yelp review. Immediately after that, we have a lot of disputes over its billing. I don't want to go over all the details, it would be too long and boring. Anyway, I stopped going there several months ago. I thought they would call me or mail me if they want to solve the issue, but they never did (they have my phone number and address).

 

Two week ago, I got a regular mail (not certified) from a collection agency, claiming I owe them 200 bucks. The mail states that I have 30 days to dispute the amount, otherwise they will assume it is valid, blah, blah, blah... To be honest, I am willing to pay 200 bucks just to make the problem go away, but I want to listen to some expert's opinion before doing that.

 

First of all, is it possible the collection will be shown on the credit report? They have my address and phone number, but not SSN. I subscribe to the credit monitoring service and so far there is nothing. I am also curious what kind of business could potentially put a collection item on my credit report? Think about it, it's scary that if a local coffee shop could put a collection on your report if they think you owe them 5 bucks.

 

Second of all, what should I do? (a) pay them directly; ( write to the collection agency, dispute the amount; © do nothing. I am inclined to do (a), which seems to be hassle-free, but am afraid that will make lose any negotiating power if a collection item eventually show up on the credit report.

 

Thank a lot of reading this. I would really appreciate for any suggestion.

[Sandscrit]

First, a little bit background of me: male, in early 30s, in good financial conditions, earning around 130K per year. I am always very careful of about my credit history, never missed a payment to credit card, car loan, utilities company. I check credit report regularly and the score is always at the high end of 700.

 

However, chocolate still happens. One year ago, I made an unfortunate decision of joining a nearby gym before checking any Yelp review. Immediately after that, we have a lot of disputes over its billing. I don't want to go over all the details, it would be too long and boring. Anyway, I stopped going there several months ago. I thought they would call me or mail me if they want to solve the issue, but they never did (they have my phone number and address).

 

Two week ago, I got a regular mail (not certified) from a collection agency, claiming I owe them 200 bucks. The mail states that I have 30 days to dispute the amount, otherwise they will assume it is valid, blah, blah, blah... To be honest, I am willing to pay 200 bucks just to make the problem go away, but I want to listen to some expert's opinion before doing that.

 

First of all, is it possible the collection will be shown on the credit report?YES They have my address and phone number, but not SSN. I subscribe to the credit monitoring service and so far there is nothing. I am also curious what kind of business could potentially put a collection item on my credit report? Anyone interested in extending credit,insurance,your employer or potential employers etcThink about it, it's scary that if a local coffee shop could put a collection on your report if they think you owe them 5 bucks.

 

Second of all, what should I do? (a) pay them directly; ( write to the collection agency, dispute the amount; © do nothing. I am inclined to do (a), which seems to be hassle-free, but am afraid that will make lose any negotiating power if a collection item eventually show up on the credit report.

 

Thank a lot of reading this. I would really appreciate for any suggestion.

Try to pay off the health club directly

[ICANHASMUNY?]

file a complaint with the local BBB on the health club.

 

ask for full validation of the debt , complete list of charges and fees, etc.

 

.

[mindcrime]

Since we don't know full details, if the billing was not in accordance with the contract you signed, the gym won't have a leg to stand on when it comes to validating the debt.

 

If there are a lot of negative Yelp reviews on them for this same issue, there may also be a lot of BBB, AG, and CFPB complaint as well, something good to have on your side.

[pwd847]

Ha, I bet the gym you were with used ABC Financial for their billing and collections. They have lots of regulations you have to follow or they screw you.

[cv91915]

First of all, is it possible the collection will be shown on the credit report? They have my address and phone number, but not SSN.

 

Your SSN isn't required for a creditor to put an entry on your credit report.

[GR8WhiTE]

which gym was this?

[fahba]

Don't worry about it. If/when it hits ur reports then dispute and it will go away. Odds are they bought the $200 debt for $10-20 and now trying to collect the full boat.

[viterbi]

 

First, a little bit background of me: male, in early 30s, in good financial conditions, earning around 130K per year. I am always very careful of about my credit history, never missed a payment to credit card, car loan, utilities company. I check credit report regularly and the score is always at the high end of 700.

 

However, chocolate still happens. One year ago, I made an unfortunate decision of joining a nearby gym before checking any Yelp review. Immediately after that, we have a lot of disputes over its billing. I don't want to go over all the details, it would be too long and boring. Anyway, I stopped going there several months ago. I thought they would call me or mail me if they want to solve the issue, but they never did (they have my phone number and address).

 

Two week ago, I got a regular mail (not certified) from a collection agency, claiming I owe them 200 bucks. The mail states that I have 30 days to dispute the amount, otherwise they will assume it is valid, blah, blah, blah... To be honest, I am willing to pay 200 bucks just to make the problem go away, but I want to listen to some expert's opinion before doing that.

 

First of all, is it possible the collection will be shown on the credit report?YES They have my address and phone number, but not SSN. I subscribe to the credit monitoring service and so far there is nothing. I am also curious what kind of business could potentially put a collection item on my credit report? Anyone interested in extending credit,insurance,your employer or potential employers etc. No, I mean who can put things on credit report? Can I local coffee shop or a maid do that if she think you owe them some money? Think about it, it's scary that if a local coffee shop could put a collection on your report if they think you owe them 5 bucks.

 

Second of all, what should I do? (a) pay them directly; ( write to the collection agency, dispute the amount; © do nothing. I am inclined to do (a), which seems to be hassle-free, but am afraid that will make lose any negotiating power if a collection item eventually show up on the credit report.

 

Thank a lot of reading this. I would really appreciate for any suggestion.

Try to pay off the health club directly

 

But didn't they already sell the debt to the collection agency? Then I will pay twice.

[viterbi]

 

First of all, is it possible the collection will be shown on the credit report? They have my address and phone number, but not SSN.

 

Your SSN isn't required for a creditor to put an entry on your credit report.

 

Does this mean anyone who has my address can sell the 'debt' to the collection agency? Say my maid think I own her 100 bucks. There should be some minimum criteria, no?

[fahba]

look I'm gonna break it down here for you. First of all, the person that recommended that you pay off the health club directly is completely wrong and has no idea what they're talking about. The health club "sold" the debt and wrote it off already. I guarantee that if you went there tomorrow with cash in hand they wouldn't accept because they aren't allowed to. Now, onto the collection agency. they purchased the debt for pennies on the dollar in an attempt to not only recoup their investment (most likely $10-20) but to get a HUGE return by collecting all of it ($200). this is the risk they take by being in the business of debt collection and business is good because unfortunately they prey on the ignorance of the general public in these matters (no offence). The truth is you owe the GYM money, not the collection agency. But the gym already took it off their books so they sold it to the collection agency to recoup whatever they could rather than lose out entirely. Who are they and why should they be obligated legally to the debt? well guess what, they aren't. They buy accounts in bundles (hundreds of accounts in one pool that cost millions of dollars) in attempt to make a ridiculous return on their investment. Lets do the math really quick on how they work. For example, they will buy a bundle of written off accounts for lets say $1 million. The total worth of those accounts are probably $10 million depending on the age of the accounts which is how they determine the quality. the newer the accounts the more likely they are to recover. the older the debt the less likely therefore cheaper. They then go after good people like yourself and say hey we need u to pay us the full boat. what they don't tell u is that they paid pennies on the dollar. Like I said before, don't worry about it and especially don't pay it. If it hits your reports it can easily be removed and you can find tons of info on here to help you do that. hope that helps

[cv91915]

 

 

First of all, is it possible the collection will be shown on the credit report? They have my address and phone number, but not SSN.

 

Your SSN isn't required for a creditor to put an entry on your credit report.

 

Does this mean anyone who has my address can sell the 'debt' to the collection agency? Say my maid think I own her 100 bucks. There should be some minimum criteria, no?

 

 

Do your maid have a subscriber code for any/each of the credit bureaus?

[ICANHASMUNY?]

 

 

 

First of all, is it possible the collection will be shown on the credit report? They have my address and phone number, but not SSN.

 

Your SSN isn't required for a creditor to put an entry on your credit report.

 

Does this mean anyone who has my address can sell the 'debt' to the collection agency? Say my maid think I own her 100 bucks. There should be some minimum criteria, no?

 

 

Do your maid have a subscriber code for any/each of the credit bureaus?

 

the maid could just sell it off to a local CA.

[nysbadmk8]

look I'm gonna break it down here for you. First of all, the person that recommended that you pay off the health club directly is completely wrong and has no idea what they're talking about. The health club "sold" the debt and wrote it off already. I guarantee that if you went there tomorrow with cash in hand they wouldn't accept because they aren't allowed to. Now, onto the collection agency. they purchased the debt for pennies on the dollar in an attempt to not only recoup their investment (most likely $10-20) but to get a HUGE return by collecting all of it ($200). this is the risk they take by being in the business of debt collection and business is good because unfortunately they prey on the ignorance of the general public in these matters (no offence). The truth is you owe the GYM money, not the collection agency. But the gym already took it off their books so they sold it to the collection agency to recoup whatever they could rather than lose out entirely. Who are they and why should they be obligated legally to the debt? well guess what, they aren't. They buy accounts in bundles (hundreds of accounts in one pool that cost millions of dollars) in attempt to make a ridiculous return on their investment. Lets do the math really quick on how they work. For example, they will buy a bundle of written off accounts for lets say $1 million. The total worth of those accounts are probably $10 million depending on the age of the accounts which is how they determine the quality. the newer the accounts the more likely they are to recover. the older the debt the less likely therefore cheaper. They then go after good people like yourself and say hey we need u to pay us the full boat. what they don't tell u is that they paid pennies on the dollar. Like I said before, don't worry about it and especially don't pay it. If it hits your reports it can easily be removed and you can find tons of info on here to help you do that. hope that helps

 

 

No, the person who suggested you pay the health club off direct ISNT wrong.

 

Paying the OC directly, Is one of many ways to make a CA go away, and help in the process of removing that CA from your reports.

 

Pay better attention to this site before you go handing out Chocolate Goodness advice.

[fahba]

@nysbadmk8. U know what you're right. The OP should pay both the OC and the CA. In fact he should go ahead and just pay anyone that ever says he owes the money from this point going forward. U should pay attention before trying to call someone like me out. It's not on his reports so why should he pay anyone in the first place jackass? Besides why do u seem to be such an advocate of paying a scum bag gym that ripped him off? R u an employee of the gym. U sound quite suspicious.

[nysbadmk8]

@nysbadmk8. U know what you're right. The OP should pay both the OC and the CA. In fact he should go ahead and just pay anyone that ever says he owes the money from this point going forward. U should pay attention before trying to call someone like me out. It's not on his reports so why should he pay anyone in the first place jackass? Besides why do u seem to be such an advocate of paying a scum bag gym that ripped him off? R u an employee of the gym. U sound quite suspicious.

 

 

Tone the rhetoric down. You'll lose.

 

 

I wasn't addressing the circumstances around why he owes the gym or if he owes the gym. Thats not my business.

 

I was addressing the issue of OC and CA. And in this credit world, You always attempt to pay the OC, instead of the CA.

 

And he would only pay if its truly owed, If he signed a billing contract with the gym in question (all gyms do this) He might owe it, and you pay it to keep it from POPPING up on your report.

 

And no, You don't pay both. With the receipt of payment to the OC, you tell the CA to take a short hike off a cliff.

 

As for me being suspect, I have 1500 posts here, you have 25. I think you have the wrong shoe on the wrong foot buddy.

Edited July 29, 2014 by nysbadmk8

[fahba]

U completely contradicted yourself my friend. I said he won't have to pay the OC once the account has been sold and u tries to call me out. Now it saying the same thing in different words. And as far as your cool 1500 posts vs. My "lowly" 25. Well that's just a reflection of how we spend our time. You are here all day trying to make smart comments to the wrong people and I'm too busy for that. Keyboard warrior lol.

[nysbadmk8]

U completely contradicted yourself my friend. I said he won't have to pay the OC once the account has been sold and u tries to call me out. Now it saying the same thing in different words. And as far as your cool 1500 posts vs. My "lowly" 25. Well that's just a reflection of how we spend our time. You are here all day trying to make smart comments to the wrong people and I'm too busy for that. Keyboard warrior lol.

 

 

You have not a clue what you are talking about. Please refrain from typing, or speaking until you truly understand what you're talking about.

 

Have another go at it troll.

[stroked89coupe]

@nysbadmk8. U know what you're right. The OP should pay both the OC and the CA. In fact he should go ahead and just pay anyone that ever says he owes the money from this point going forward. U should pay attention before trying to call someone like me out. It's not on his reports so why should he pay anyone in the first place jackass? Besides why do u seem to be such an advocate of paying a scum bag gym that ripped him off? R u an employee of the gym. U sound quite suspicious.

 

 

Explain yourself. You're not making cents. Or dollars for that matter.

[fahba]

@nysbadmk8...whatever u say keyboard warrior. Keep working at collecting that post count. Maybe the forum will give u a plaque when u reach 2k. Don't give up pal.

 

@stroked89coupe I was being sarcastic with those comments.

[stroked89coupe]

@nysbadmk8...whatever u say keyboard warrior. Keep working at collecting that post count. Maybe the forum will give u a plaque when u reach 2k. Don't give up pal.

 

@stroked89coupe I was being sarcastic with those comments.

 

 

@fahba ...... Stop.

 

 

 

Please do not spend your time arguing with our members. If you can not directly contribute to the OP then please move on.

Edited July 29, 2014 by stroked89coupe

[fahba]

Calling me a troll? Ur an salamander. I saved the OP from wasting $200 of his hard earned $ and u come along and troll my comment and start all this first thing in the morning. I have have a living yo go make unlike u who spends all day here trolling ppls comment in Ur underwear from ur parents basement.

[nysbadmk8]

@nysbadmk8...whatever u say keyboard warrior. Keep working at collecting that post count. Maybe the forum will give u a plaque when u reach 2k. Don't give up pal.

 

@stroked89coupe I was being sarcastic with those comments.

 

 

In the face of adversity some people will rise up above the controversy. Some will collect themselves, admit they didn't know, and take it as a lesson. On the other-hand, some will distract, yell loudly, point in 4 different directions, and do anything but continue a civil conversation because they cant.

 

I see which flag you fly.

[fahba]

Here yee, here yee nysbadmk8 is a loser. Lol

[nysbadmk8]

Calling me a troll? Ur an salamander. I saved the OP from wasting $200 of his hard earned $ and u come along and troll my comment and start all this first thing in the morning. I have have a living yo go make unlike u who spends all day here trolling ppls comment in Ur underwear from ur parents basement.

 

 

You saved no one money, You gave him potentially credit damaging advice, that could cost him 1000's rather then save him 200 bucks.

 

Please get lost now.