Mistake - Forgotten Bill

[Jellyfish]

When pregnant with DD2, I received all the paperwork for the hospital which included paying the gap from my Private Health Insurance of $250. Well, I meant to fill it in and send it but amongst everything it got forgotten and off I went and had my baby, got my letter from my PHI stating they had paid however much it was and didn't think twice about it, thought it was all sorted. We then moved house a week after DD2 was born and although, I thought we updated our address when we went back to have DD2's hips scanned we must not have or the departments don't communicate in that capacity or whatever; upshot is that any letters about this missing payment went to our old address it seems. Today I receive a call from a debt collection agency and I'm suddenly panicking trying to work out what it could be (whether it was something to do with DD1's dad maybe) before they explain it is from the hospital. Oh ****!! I rush off and sure enough, find the form and apologize a bunch, I feel like such an idiot. I pay it straight away and that's that. I feel terrible, I have NEVER missed a bill or rent, I have never had a loan or a credit card, every phone I've had I have bought outright because I hate being locked into things where I owe money. My credit rating is spotless (or more accurately, practically non-existant) so now I'm freaking out -- how will this affect things? I know it is my fault for forgetting but it was completely innocent, I never intended not to pay and I had the means to but guessing that is irrelevant... ****, ****, ****!! I didn't think to ask when I was talking with them, was pretty flustered... since I paid straight away (this is the first contact I've had from the debt collection agency) how bad is it? Because it got to the debt collection agency does that mean I'm basically screwed with a big black mark all over my name no matter how forth coming I was with the payment?? She is 3 months old so I guess they hospital has been chasing this up for a while and with the move... ahh so annoyed at myself.

Anyone know? Is there someone I can call to plead my case (I can show when we moved and such if that even matters in the end) to get it removed if it is now there? At least it is paid I suppose and if I have to live with the consequences then so be it, I don't have any intentions of borrowing money in any capacity any time soon but not sure how long these things 'count' for and such or their affect on things like renting...

[Phteven]

You'll be fine. Your credit rating won't be screwed because of one bill that you paid as soon as you found out about it.

[Netix]

Relax, you're credit rating is unaffected. The bill is paid to the collector (probably with an additional fee for them), and paid to the original creditor. It takesa number of notices from the debt collector and the bill remaining unpaid for it to affect or appear on your credit rating. Even if you make a payment arrangement with a debt collector (and you keep to it), it won't affect your credit.

Relax now.

[Jellyfish]

Well that is a relief haha. It was $270 in the end which I assumed was to do with a collection fee and I couldn't pay it faster! That was such a horrible feeling and I have definitely learnt a new lesson to deal with any paperwork as soon as I get it so it isn't forgotten.

I was having such a huge panic, freaking out that we would be ready to purchase a house and suddenly this $250 bill is haunting me forever lol. Bit dramatic

[sloane]

For a default to be listed on your credit rating they need to send you a formal letter advising you that you have a certain number of days to pay or the default will be lodged with the craa. Well, thats how it usedvto work!

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[Netix]

I was having such a huge panic, freaking out that we would be ready to purchase a house and suddenly this $250 bill is haunting me forever lol. Bit dramatic

Even if this did end up on your credit rating, often if you pay the due amount and contact the creditor (explaining one off, etc), they will wipe it off your credit rating, letting you apply for loans, etc. However, others, don't count on creditors actually doing this, as far as I'm aware, they don't *need* to.

Another note for others; If you can't pay the total due amount in the seven days (or whatever the timeframe is the collection agency gives you), try to negotiate a payment plan (affordable to you), and work on getting it paid. It can be really hard to say "no, I'm sorry, I can't pay it all at once, can I pay it off, please?", but it's harder dealing with what the outcome could be if it is ignored repeatedly (ie, phone calls, letters, summons to court, ending in default listings on your credit rating). Trust me, I am, no, used to be, terrific at putting off due payments, etc, so take it from me, it is FAR EASIER to work out a plan (and then stick to it).

Sloane; often they will send a few letters; the first letter, a reminder (or two), and a final. Others; don't count on there being more than one letter, deal with it.

[chody47]

I had something similar happen over a $29 internet bill. I could have sworn we paid it (it was the final month of the contract), but apparently we didn't (to this day I still don't understand how it happened as the company was supposed to direct debit us, but for some reason they didn't that month). Bills were sent via email and I barely checked that account.... Suddenly we had a debt collector calling us. Anyway, we paid the bill and then I also rang the company to check that it wouldn't affect my rating. It took a few people before someone could actually answer my question, but in my case, it didn't.