Do Unpaid Tolls Affect Your Credit?
Explore how unpaid tolls might eventually affect your credit score and other financial aspects.
Unpaid tolls can raise concerns about their impact on financial standing, particularly credit scores. This article clarifies how a missed toll payment can lead to various consequences, affecting long-term financial health.
Immediate Credit Score Impact
An initial unpaid toll does not directly affect a person’s credit score. Toll authorities do not typically report directly to major credit bureaus. Therefore, a missed toll payment generally does not immediately appear on a credit report or cause a credit score drop.
The Path to Credit Reporting
While an initial unpaid toll does not directly impact a credit score, escalating actions can eventually lead to negative credit reporting. Toll authorities send violation notices to the vehicle’s registered owner. These notices include the original toll amount and administrative fees, significantly increasing the total amount due.
If these notices remain unpaid, the outstanding debt is transferred to a third-party collection agency. These collection agencies, rather than the toll authorities, may report the delinquent account to the credit bureaus. A collection account is a derogatory mark, which can substantially lower a credit score. This negative entry can remain on a credit report for up to seven years, affecting future borrowing opportunities.
If the debt remains unresolved, the toll authority or collection agency may pursue legal action for a civil judgment. A civil judgment is a court order for payment. While judgments generally no longer appear directly on credit reports, the underlying debt, if previously reported by a collection agency, would still impact the credit score. Civil judgments are public records, influencing potential lenders, landlords, or employers regarding an individual’s financial reliability.
Additional Consequences of Unpaid Tolls
Beyond credit impact, unpaid tolls lead to other significant ramifications. A common consequence is a vehicle registration hold or suspension. Toll authorities can notify the Department of Motor Vehicles (DMV), preventing registration renewal or leading to suspension. This can render the vehicle illegal to operate, potentially resulting in fines or impoundment.
The original toll amount can escalate dramatically due to accumulating fines, administrative charges, and collection costs. A small toll can quickly grow into hundreds or thousands of dollars in penalties. In certain jurisdictions, persistent non-payment can lead to the suspension of driving privileges. This limits an individual’s ability to commute, work, or manage daily life.
Toll authorities or collection agencies may also initiate civil lawsuits to recover the outstanding debt. Such legal action can result in court appearances, additional legal fees, and if a judgment is secured, it could potentially lead to wage garnishment or property liens, even if the judgment itself is not directly reported to credit bureaus. These actions represent distinct financial and legal burdens separate from credit score implications.
Resolving Unpaid Toll Obligations
Addressing unpaid toll obligations promptly can help mitigate potential financial and legal repercussions. Individuals can typically check for outstanding tolls by visiting the websites of relevant toll authorities and searching by license plate number. Many toll agencies provide online portals or customer service hotlines to facilitate this inquiry.
Once identified, contacting the specific toll authority or collection agency is a crucial step to understand the total amount owed, including any accumulated penalties. Most authorities offer various payment options, such as online payments, mail, or phone. If there is a belief that a toll was issued in error, individuals generally have a process to dispute the charge directly with the toll authority, often requiring documentation to support their claim.
In situations where the debt has been sent to a collection agency, it may be possible to negotiate a payment plan or a reduced settlement amount, especially if a lump-sum payment can be made. Securing any agreed-upon terms in writing from the collection agency before making payments is an important practice to ensure clarity and avoid future discrepancies.