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retmar
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While talking to my Nephew today, he told me his Auto Insurance Company has turned him over to a third party collector. When I asked why, he said he found out he had missed one of his payments. This was verified by the office where he makes the payments as he had called to find out what is going on. They are an underwriter, not the insurance company itself. One may not think this wierd, but, hold on, it gets better.

He has been consistent in his payments for all but the one mentioned and the policy is still in effect. Never received a Notice Of Cancellation or any other letter regarding his missed payment until the initial from the CA. Remember, usually when you first join a particular insurance company, they require two months payment. This way you are always one month ahead just in case something happens. A couple of times in the past I have done this and never had a problem. I would just send a double payment the next month. Never a problem. One time it went to the next and I did receive a "NOC", but, once paid, no problem. In short, the current payment went toward the past due balance and left a balance owing for the current date for the term of the policy meaning the account is not delinquent.

Here is where I get my Dander up. They have turned over to a third party collector an account that is not delinquent to begin with. I am still amazed at the Stupidity of someone doing this. I haven't decided to laugh, call these people myself and have a "Hell Of A Good Time", or what. I'm calling the Insurance Commissioner tomorrow and see what they have to say. Will keep things posted as it progresses.

All opinions are welcome and I will gladly share them with this company.

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The IC will probably explain to you the insurance company probably has outsourced it's payment processing and collections function. It is not uncommon for a third party collector to contact a customer for payment even if one day late. Home owner associations are one such example contracting with agencies to collect because this is what they do best.

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ghacorp, I've just never heard of such a thing before. He never received a statement that the payment was late nor did he receive a phone call. Everything has been normal until he received this initial communication. Even the writer is not aware of what is going on. They can only say he did miss a payment a while back. As I mentioned before, due to knowing how many insurance companies work as to the payment schedule, there is no delinquency more than 30 days at the most if you consider last payment only bringing the account to the 30 days late. I'm going to call this writer tomorrow and see what I can find out.

Shreveport, to answer your question, the policy has not been interrupted in any way. Where the problem is is that referring to a third party collector a 30 day late is not within the norm which is 180 from last payment before charge off and assign. There is something funny here and I'm trying to see if some have ever seen this before. It's a first for me.

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Did the Ins. Co. cancel his policy?

Did they raise his rates?

If neither of these, then what exactly is the problem?

Dan

In general, having an item go to collection is a problem. Especially if that item is only 30 days late (if that). Debts are not usually assigned to CA's until they go past the 180 days etc. You seem very persuasive to advise others to take it up the you know what and just pay CA's left and right regardless of legal standing or policies. I have to wonder why on earth you would even want to post on a board where others are trying to clear up/maintain their credit, rather than show how many CA's they can pay off successfully. :roll:

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Did the Ins. Co. cancel his policy?

Did they raise his rates?

If neither of these, then what exactly is the problem?

Dan

In general, having an item go to collection is a problem. Especially if that item is only 30 days late (if that). Debts are not usually assigned to CA's until they go past the 180 days etc. You seem very persuasive to advise others to take it up the you know what and just pay CA's left and right regardless of legal standing or policies. I have to wonder why on earth you would even want to post on a board where others are trying to clear up/maintain their credit, rather than show how many CA's they can pay off successfully. :roll:

I believe your referring to a discussion going on in another thread.

I found this board in my own search for assistance to clean up my credit. I have no problem with doing everything within the law to protect youself from unwanted harassment.

I also believe that there is too much emphasis here on avoiding payment and not enough on being responsible, and believe me I have screwed up with the best.

My comments in this thread were indeed sincere. I honestly don't understand why it matters who collects if the policy is in good standing and the rate remains the same.

Dam

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The emphasis here is not skirting your financial responsibility. If that were the case, we would encourage people to get a line of credit, max it out, and not pay. There has not been one thread on this site that has promoted that, and there never will be.

All of the people here (for whatever reason put them in dire straights) are now ready to face the music and claw their way out the hole they're in.

The system, however, does not make remedy for the person ready to face up to their responsibility. Until such time that FICO, or credit standards indicate a positive acknowledgment of paying your damaging debts, you are throwing your money away. Use it to pay down another account.

A paid charge off or paid collection under the current scoring system is just as bad as having an active one. If FICO alone would show a marked improvement for paying off a damaging debt, then I'd say write those checks until your hand goes numb.

The whole system is biased toward corporations who will be here long after we're gone (in spite of what they say). Why not do whatever it takes to shine your image? Corporations do it all the time - it's time for the consumer to do the same.

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While talking to my Nephew today, he told me his Auto Insurance Company has turned him over to a third party collector. When I asked why, he said he found out he had missed one of his payments. This was verified by the office where he makes the payments as he had called to find out what is going on. They are an underwriter, not the insurance company itself. One may not think this wierd, but, hold on, it gets better.

He has been consistent in his payments for all but the one mentioned and the policy is still in effect. Never received a Notice Of Cancellation or any other letter regarding his missed payment until the initial from the CA. Remember, usually when you first join a particular insurance company, they require two months payment. This way you are always one month ahead just in case something happens. A couple of times in the past I have done this and never had a problem. I would just send a double payment the next month. Never a problem. One time it went to the next and I did receive a "NOC", but, once paid, no problem. In short, the current payment went toward the past due balance and left a balance owing for the current date for the term of the policy meaning the account is not delinquent.

Here is where I get my Dander up. They have turned over to a third party collector an account that is not delinquent to begin with. I am still amazed at the Stupidity of someone doing this. I haven't decided to laugh, call these people myself and have a "Hell Of A Good Time", or what. I'm calling the Insurance Commissioner tomorrow and see what they have to say. Will keep things posted as it progresses.

All opinions are welcome and I will gladly share them with this company.

So wait for the CA to contact and then send a dispute/DV letter stating that the account was never in arrears. I'd send a letter to the Insurance company telling them that you'll treat it as a FCRA violation if they falsely report the account as being in arrears when it was not....

Oh, and look for another insurance carrier, this one apparently doesn't have it's act together. Makes me wonder how thorough they would be if you had to make a claim.

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Did the Ins. Co. cancel his policy?

Did they raise his rates?

If neither of these, then what exactly is the problem?

Dan

In general, having an item go to collection is a problem. Especially if that item is only 30 days late (if that). Debts are not usually assigned to CA's until they go past the 180 days etc. You seem very persuasive to advise others to take it up the you know what and just pay CA's left and right regardless of legal standing or policies. I have to wonder why on earth you would even want to post on a board where others are trying to clear up/maintain their credit, rather than show how many CA's they can pay off successfully. :roll:

I believe your referring to a discussion going on in another thread.

I found this board in my own search for assistance to clean up my credit. I have no problem with doing everything within the law to protect youself from unwanted harassment.

I also believe that there is too much emphasis here on avoiding payment and not enough on being responsible, and believe me I have screwed up with the best.

My comments in this thread were indeed sincere. I honestly don't understand why it matters who collects if the policy is in good standing and the rate remains the same.

Dam

Those two comments (bolded) are telling.

Protecting themselves from "unwanted harassment" (as opposed to the "wanted" variety of harassment??) is really only one small part of what consumers need to protect themselves from. Once again you seem to greatly underestimate the circumstances that many debtors face.

And to top it off, even though you know very little of the complete financial/personal picture for the situations posted about in these forums, you have decided what is irresponsible behavior and where "proper" emphasis should be placed.

You sir, are either a genius (in a Kreskinian sort of way) or you are totally clueless. Only time will tell.

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Did the Ins. Co. cancel his policy?

Did they raise his rates?

If neither of these, then what exactly is the problem?

Dan

In general, having an item go to collection is a problem. Especially if that item is only 30 days late (if that). Debts are not usually assigned to CA's until they go past the 180 days etc. You seem very persuasive to advise others to take it up the you know what and just pay CA's left and right regardless of legal standing or policies. I have to wonder why on earth you would even want to post on a board where others are trying to clear up/maintain their credit, rather than show how many CA's they can pay off successfully. :roll:

I believe your referring to a discussion going on in another thread.

I found this board in my own search for assistance to clean up my credit. I have no problem with doing everything within the law to protect youself from unwanted harassment.

I also believe that there is too much emphasis here on avoiding payment and not enough on being responsible, and believe me I have screwed up with the best.

My comments in this thread were indeed sincere. I honestly don't understand why it matters who collects if the policy is in good standing and the rate remains the same.

Dam

What part of "the account is not delinquent" did you not understand? There is no payment here to be "avoided". Hey, if you want to bend over for unscrupulous collectors, then go ahead. But most of us here are trying to be a little more pro-active when it comes to our credit and finances. It's obvious you just haven't taken a good screwing yet. It can happen to the innocent, you know? And, with your outlook, yours is coming. :(

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I would pull the CBR, see if the CA is on there, dispute with the CA and the CRA and contact the insurance company policy servicer and insurance company and make noises about them ruining my credit when I have no delinquent balance. You could also threaten to file a complaint with your state department of insurance (if your state has one).

You absolutely don't want a CA on your CBR even if the account reflects paid, especially since it can stay on there for so long. Who knows, in a couple of years the nephew may want to buy a house or a car and that collection on his CBR will raise his interest rate and payments on a 30 year mortgage or 3 year car payment by potentially $1000(s) of dollars.

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Pardon my ignorance here, but something's not adding up. Why would insurance premiums go to a CA? Wouldn't they just cancel you? For instance, here in NJ, my car ins is $600 for the year. I pay them $200 in June, and then $70 every other month until March. If I were to stop paying somewhere along the line, they would calculate the DOC based on how much I've paid in so far, and if I don't pay before that date, they cancel me.

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Pardon my ignorance here, but something's not adding up. Why would insurance premiums go to a CA? Wouldn't they just cancel you? For instance, here in NJ, my car ins is $600 for the year. I pay them $200 in June, and then $70 every other month until March. If I were to stop paying somewhere along the line, they would calculate the DOC based on how much I've paid in so far, and if I don't pay before that date, they cancel me.

I think thats exactly the point the OP is trying to make. They havent cancelled him, yet a CA is contacting him about payment???? Something smells...........

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Where the problem is is that referring to a third party collector a 30 day late is not within the norm which is 180 from last payment before charge off and assign. There is something funny here and I'm trying to see if some have ever seen this before. It's a first for me.

i'm interested in an answer to this. when can an OC "charge-off" and send an account to a CA? 1 day past due? 30, 180?????

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The answer is after 180 days for credit card accounts and sometimes a couple of months longer for certain retail accounts. Most people mistakingly associate collection agencies with late or end stage collections that ruin credit reports. Such is not the case! Some creditors other than banks use collection agencies for early stage collections such as possibly the insurance company. Contracts vary and not all receive big commissions for collecting debts. Many homeowner associations will pursue collection after 90 days, but these will not necessarily be credit reporting. America Online routinely does the same thing with non renewers.

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jlindseyjr, you have hit it on the head quite hard. That is exactly why I began this post. Each and every insurance company I have ever dealt with along with my own children, if a payment was missed for over two months, the policy was cancelled, period. No collection, no nothing. In short, find another insurance company and move on.

Unfortunately, I just got home from a busy day (Vet Business) and haven't been able to dig further into this. I am calling the IC to see what I can find, along with calling the writer to see what they say. I will definitely post the answers when I get them.

anti-something, look under FCRA 605©(1) as it will answer your question. If not, let me know.

shreveport, the problem is that the debt is not charged off nor is it actually in arrears. Since he continues to pay monthly, at the most he is a month behind. Since most insurance companies require at least 2 months up front, the policy is always paid and current. As to your comment about who cares who collects, it does make a differnece as a third party collection on your CR hurts your score.

To answer the others, I am not going to have him DV as he is aware there is a missed payment. The insurance company never informed him he missed a payment. He has each and every statement since day 1. He still can't figure how he goofed. I'm going to wait until I get all answers from the IC and writer, then go after this company. And, yes, he is looking for another insurance company.

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retmar: no, that didnt really answer my question, it just brought up more. I was wondering more *when* an OC could legally charge -off an account, if it had to be in arrears for a certain amount of time, or if that decision was something that could be arbitrarily taken by the OC whenever they felt like it.

as in the insurance co in this case, they have sent this to collection, but is the bill really in arrears at this point? does it matter, can they send the account to collection anyway?

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shreveport, the problem is that the debt is not charged off nor is it actually in arrears. Since he continues to pay monthly, at the most he is a month behind. Since most insurance companies require at least 2 months up front, the policy is always paid and current. As to your comment about who cares who collects, it does make a differnece as a third party collection on your CR hurts your score.

My thinking was, since the account is not delinquent; there should be no adverse affects on the CR. They normally cancel the insurance once the money runs out.

I have never had an insurance company on my CR at all and believe me, I know about missing car insurance payments among other things.

Good Luck

Dan

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Thanks Doc for the response!

Shreveport, the problem is because once an account goes to a third party collector, they always report a negative trade line on your CR. This is one of their ways to cause you to pay the debt. If he pays to the CA, the most he "might" get is they will show it as paid. Hopefully, with my input to him, he gets a deletion. Remember, since he paid 2 months advance, he is actually not late, he is using his "reserves" until such time as he brings the account to 2 months ahead again as he is actually still 1 month ahead.

I just got home as I had been at a local High School being interviewed about my being in Viet Nam, so haven't started with the phone calls yet to see what is up with this. When I get some answers or updates, I will let everyone know.

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Called the Consumer Hotline for the State of California Department of Insurance. They were amazed and can not understand what is going on. They want a copy of all communications from all parties and will investigate. The lady's response was the same as all of ours, why did they not cancel? Will keep everyone posted.

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I was wondering more *when* an OC could legally charge-off an account, if it had to be in arrears for a certain amount of time, or if that decision was something that could be arbitrarily taken by the OC whenever they felt like it.

Ok from what I understand the OC can charge off an account anytime they want for non payment (UP TO 180 DAYS) Once 180 days hits, they MUST charge it off. This is to protect consumers from OC's holding out on accounts to run the DOLA on and on and on am I correct? anybody?

The question is more of when MUST a creditor charge off not when can they.

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Businesses are abusing us by sending accounts to collections. They find it easier to just send it to collections instead of wasting their own time. I have been sent to collections so many times without even receiving a FIRST warning bill. One time that sticks out is five years after I closed a wireless phone service, I got a letter from a collection agency. I did not owe anyone no money. They just sent my account to collections for no reason....FIVE years later! Personally, I think it is to scare money out of unknowing people.

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