Will my credit cards work?

[treesinger]

This really irks me! I had a bill which has been paid off for many months that was reported for collection. I just got a letter stating that it is now being reported to all of the credit bureaus that I didn't pay the bill. I'm leaving for WDW on Sep 17, 2 short weeks away. (yay!)
Will my credit cards be shut down because of this fiasco or will I still be able to access my credit lines? I tend to pay credit for everything because of the bouns perks, and HAVE to this time because of a temporary cash flow problem.
Any ideas guys?

Jason

 

[GAIL HAYDEN]

Originally posted by treesinger
This really irks me! I had a bill which has been paid off for many months that was reported for collection. I just got a letter stating that it is now being reported to all of the credit bureaus that I didn't pay the bill. I'm leaving for WDW on Sep 17, 2 short weeks away. (yay!)
Will my credit cards be shut down because of this fiasco or will I still be able to access my credit lines? I tend to pay credit for everything because of the bouns perks, and HAVE to this time because of a temporary cash flow problem.
Any ideas guys?

Jason

I doubt greatly that you will have a problem using the credit cards, the only problem this letter will cause will be if you want new credit, I hope you get this resolved.

 

[drgnfly30]

I don't want to freak you out but as I work for one of the major credit card issuers I know for a fact that this could pose a potential issue - from having your APR increased, to having your credit line reduced, to having the account shut down. It all depends on how you use your other cards (certain types of transactions are considered riskier such as cash, groceries - disposable type charges), how you pay on them (minimum payers are considered riskier) & how serious the negative information is... (ie how much is the outstanding bill on the collection account). You need to contact the three major credit reporting agencies to dispute the collection account so that if one of your other creditors sees it, they'll know it is a disputed item. Also contact the Collection agency AS WELL AS the original creditor in writing with copies of cancelled checks & the like, so the investigation can begin. It doesn't hurt to find out the regulatory agency for the original creditor & copy them on the letter as well (if it is another credit card company than it is most likely the Comptroller of the Currency or the FDIC). Feel free to contact me for more info...

 

[drgnfly30]

I also just realized that you live in Bear, DE - I'm in Newark - It's a Small World!!
Christine

 

[phorsenuf]

Originally posted by drgnfly30
I don't want to freak you out but as I work for one of the major credit card issuers I know for a fact that this could pose a potential issue - from having your APR increased, to having your credit line reduced, to having the account shut down. It all depends on how you use your other cards (certain types of transactions are considered riskier such as cash, groceries - disposable type charges), how you pay on them (minimum payers are considered riskier) & how serious the negative information is... (ie how much is the outstanding bill on the collection account). You need to contact the three major credit reporting agencies to dispute the collection account so that if one of your other creditors sees it, they'll know it is a disputed item. Also contact the Collection agency AS WELL AS the original creditor in writing with copies of cancelled checks & the like, so the investigation can begin. It doesn't hurt to find out the regulatory agency for the original creditor & copy them on the letter as well (if it is another credit card company than it is most likely the Comptroller of the Currency or the FDIC). Feel free to contact me for more info...

Call me ignorant but how could a different bill that is unpaid (although it is) cause her credit card account to be shut down?
After my husband had a serious accident and was out of work we had to let bills go by. As long as we were paying on the credit cards (minimum at that) we never had any problems using our cards. Yes, it could impact her other ways, but not causing the cards to be shut down. Heck, we owed the government $70,000. (long story, not our fault, was on our credit report) and we still never had any trouble with cards. While I agree with everything else you said, and it was some good advice, I don't tend to agree with that part.
The cards will be fine. Go and don't worry.

 

[GAIL HAYDEN]

phorsenuf
The credit card companies do check the credit bureaus when they do "maintenance" on your cards.
Providian and a few others will raise your rates, lower your limits and sometimes will cancel the card if they see something neg. on your report. Others do not.
It is imperative that the OP get this resolved, but, I think the OP knows this. Odds are the cards will be fine to use on Vacation.

 

[treesinger]

Hi there Christine, small world indeed!

The bill in dispute is $150.00 from Christiana Care Health Services when the doctor's office fouled up the billing info for one of my girls doctor visits. I've contacted the collector this morning and am waiting to hear back from them once they recheck the facts.

Jason

 

[drgnfly30]

treesinger -
Having dealt with Christiana Care myself on occasion! If they just assigned it to the collection agency then it probably hasn't yet been reported to the credit bureaus. They usually use that as a threat to get you to pay up. You might want to contact the Dr's office, they might be able to help out!
Good Luck!

phorsenuf & other interested parties!!-
Check your Credit Agreement's, MOST major issuers now include clauses that 1) require you make the required payments to ALL of your creditors or risk losing low APR's etc.. 2) they will review your credit standing on a regular basis to ensure you still meet their requirements for credit granting 3) All will surely indicate that they can adjust your credit line (up or down) or close your account at any time. 4) that the terms of the credit agreement can be changed (APRs, late fees etc) at any time due to your credit standing....
AND late payments or collection accounts aren't the only factor- how much debt or potential debt you have is a far bigger factor than anyone believes!

HTH
Christine

 

[treesinger]

It has been reported to the credit agencies already.

Turns out, Aetna never reprocessed the claim. We'll see how it goes in another ten days.

Jason

 

[drgnfly30]

Had the same problem with Coventry.. Switched to Aetna because of all the problems.. but have since heard similar stories with Aetna! It took me 1 1/2 years to get mine resolved... I ended up paying $15 that I wasn't supposed but just to end it!
Good luck & have a great time at Disney!!
Christine

 

[reeddi]

I am by no means a credit expert but if I am not mistaken, they can not use a medical bill against you. I think it is because of the problems with insurance companies.
You might want to check into that.