Past Due Accounts Can Be Turned Over to Collections

Dear Experian,

I have a dispute with a security alarm company. They have implied a contract extension on a policy that I did not approve. I have not made a payment on the policy since November 2012 and am concerned that they may eventually turn the balance over to collections, thus negatively affecting my credit, though they have not threatened such action yet. Is there an arrangement I can make with the credit reporting companies that can prevent harm to my credit in the event that issues with this company escalate? That is, can I prevent them from damaging my credit history by reporting this unpaid balance? Or is my only option to pay them?


Dear JSS,

Unfortunately, you cannot "block" a creditor from turning a past due account over to collections or from reporting the past due debt to the credit reporting companies. The dispute is between you and the creditor, and ultimately needs to be resolved with them.

As you continue to try and resolve the issue, communication between you and the creditor is key. Ask for documentation about the extension and keep copies of all correspondence.

If you ultimately cannot agree on the contractual obligation and they report you as delinquent, you can add a statement of dispute to the account.

Thanks for asking.
The "Ask Experian" team