Can Not Paying Tolls Affect Your Credit?

Unpaid tolls can become a source of financial concern for many drivers. While the initial toll amount may seem minor, failing to address these obligations can lead to escalating penalties and, in some cases, negatively affect an individual’s financial standing.

Understanding Unpaid Toll Consequences

When a toll goes unpaid, the initial consequence is typically the assessment of late fees and administrative charges. These fees can quickly increase the original toll amount, sometimes significantly. For example, a small toll of a few dollars could accumulate tens or even hundreds of dollars in penalties if left unaddressed over time.

Toll authorities often send multiple notices to the registered vehicle owner, detailing the unpaid tolls and accumulated fees. Ignoring these notices can lead to more severe non-credit related consequences. Many jurisdictions have provisions to place a hold on a vehicle’s registration renewal or even suspend it. Some areas may also pursue driver’s license suspension for habitual offenders.

In certain instances, unpaid tolls can escalate to civil action. Toll authorities may take the individual to court to collect the outstanding debt, potentially resulting in a court judgment against the driver. While the judgment itself might not appear directly on a credit report, the underlying debt often leads to other negative reporting.

How Unpaid Tolls Affect Credit

Unpaid tolls do not immediately appear on a credit report, as toll agencies typically do not report directly to credit bureaus. However, the situation changes if the unpaid debt is transferred to a third-party collection agency. Once a collection agency acquires the debt, they can report it to the major credit bureaus as a collection account.

A collection account is a serious negative mark on a credit report and can significantly lower a credit score. This derogatory mark can remain on a credit report for up to seven years from the date of the original delinquency. The presence of a collection account can make it more challenging to obtain new credit, secure loans, or even rent an apartment.

While civil judgments are no longer reported directly to credit bureaus due to changes implemented, the underlying delinquent debt that led to the judgment can still be reported. If a toll debt results in a civil judgment, the original unpaid toll and subsequent collection activity are likely already impacting the credit report. The distinction between a simple traffic ticket and a toll debt is that a toll is a direct charge for a service, whereas a traffic ticket is a fine for a violation and does not affect credit unless it leads to a collection or judgment.

Steps to Address Unpaid Tolls

Addressing unpaid tolls promptly can prevent escalating fees and potential credit issues. Many toll authorities offer online portals where individuals can check for outstanding tolls by entering their license plate number.

Unpaid tolls can be paid online, by mail, or in person at designated payment centers. Many toll agencies provide a grace period, often around 14 days, to pay missed tolls without incurring additional fines. If a charge seems incorrect, individuals have the option to dispute the toll. This involves submitting a form or contacting customer service with supporting documentation within a specific timeframe, such as 30 to 45 days of the transaction date.

To avoid future unpaid tolls, using electronic transponders like E-ZPass is advisable. These transponders link to a prepaid account as a vehicle passes through toll gantries. Regularly checking transponder account balances, ensuring payment methods are current, and updating vehicle information with the toll authority are important proactive measures.