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Gang,

 

Was speaking to a buddy last night... He quit his job in the summer to take another one and his former employer ended up over paying him ~ $220 (something related to accruded vacation). Anyway, he's refused to pay becuase it's totally silly and it wasn't his fault they over payed him... Nonetheless, it has gone to "collections"... Does this in fact effect his "credit rating"? If so how? My thought was that it shouldn't b/c it is not "credit" related (not like defalting on a loan or missing a credit card payment, etc.). We have a DQ Blizzard riding on this!

 

Thanks,

 

P

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Asking this type of question is not wise on a forum like this as most have no legal expertise on such matters......I happen to know the answer to your question but I will not post a reply to it as it is highly inappropriate to do so

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Asking this type of question is not wise on a forum like this as most have no legal expertise on such matters......I happen to know the answer to your question but I will not post a reply to it as it is highly inappropriate to do so

 

Ron,

 

Just curious as to why this question is highly inappropriate, its not like he said the name of the friend or the collection agency, the company he use to work for or anything else person? Just curious as to why you see it as highly inapproraite so I don't make the mistake in the future and post something that could be veiwed as highly inappriorate.

 

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I was looking for general info, but maybe there is more to the answer then yes will effect his credit rating, or no it won't... Maybe b/c I asked why/how?!

 

P

 

Asking this type of question is not wise on a forum like this as most have no legal expertise on such matters......I happen to know the answer to your question but I will not post a reply to it as it is highly inappropriate to do so

 

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If he does not pay the collection agency the money and they in turn report this to one of the credit rating agencies then yes it could negatively effect his credit (third party collections). Even if he now pays it it could still show up as going to collections.

 

The bottom line is he knew he was overpaid, company figured it out and he thinks paying back money not his as "silly"?

 

You will win the bet just make sure you get paid from this guy up front...

 

 

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No sure he actually knew... From what he told me, he was expecting to receive his final paycheck (~$800 holiday pay) and it was - (negative) $220...

 

So I guess I don't win the bet as you (and others) say it will, in fact effect his credit rating...

 

P

 

P.S. He felt it was "silly" as it was such a (relatively) small amount @ ~$220 (probably cost the company at least half of that to contract an agent to collect it!

 

 

If he does not pay the collection agency the money and they in turn report this to one of the credit rating agencies then yes it could negatively effect his credit (third party collections). Even if he now pays it it could still show up as going to collections.

 

The bottom line is he knew he was overpaid, company figured it out and he thinks paying back money not his as "silly"?

 

You will win the bet just make sure you get paid from this guy up front...

 

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No sure he actually knew... From what he told me, he was expecting to receive his final paycheck (~$800 holiday pay) and it was - (negative) $220...

 

So I guess I don't win the bet as you (and others) say it will, in fact effect his credit rating...

 

P

 

So he got a cheque for negative -$220 ? How does that work and how did he not know? Once something is handed over to collections you know well before hand. Why are you making excuses for this guy? If I got a cheque for a negative ammount I would investigate! What did the bank say when he went to deposit this cheque?

 

 

This story just keeps getting better!

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No, no... He didn't know if it would effect his CR or not, nor did I, that is why I've posed the question. The bet was just a side thing (mostly cuz, I think I know it all!! :P)...

 

I guess it was supposed to be his final pay cheque and it was just his final pay statement with a negative balance, not an actual cheque!

 

P

 

So he got a cheque for negative -$220 ? How does that work?

 

Crazy that he knew this action would effect his credit and he let it progress to this!

 

This story just keeps getting better!

 

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You can send something..non payment of a bill or overpayment to collections without having it effect his credit. They can't report to a bureau without a sin number.If they have a sin number they could report it and they probabley do if he worked for them.

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Gang,

 

Was speaking to a buddy last night... He quit his job in the summer to take another one and his former employer ended up over paying him ~ $220 (something related to accruded vacation). Anyway, he's refused to pay becuase it's totally silly and it wasn't his fault they over payed him... Nonetheless, it has gone to "collections"... Does this in fact effect his "credit rating"? If so how? My thought was that it shouldn't b/c it is not "credit" related (not like defalting on a loan or missing a credit card payment, etc.). We have a DQ Blizzard riding on this!

 

Thanks,

 

P

 

 

Short answer...no.

 

Credit bureau reports on debts - Credit cards, quick cash loans etc. A clerical error will not show.

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