Wednesday, August 08, 2012

DC turns unpaid parking tickets over to debt collectors

The District of Columbia is turning over unpaid parking tickets to debt collectors, and this can cause FICO or Vantage credit scores of violators to drop suddenly, by over 100 points.

Other jurisdictions are very likely going to do the same, especially for out-of-town tickets from distant states.  They could do the same thing with red light and speeding photo tickets.

It does seem that scores will go back up if violators settle the tickets in full.  It’s not clear, however, what happens if they settle through the debt collection agency, which takes a substantial cut.

WJLA (ABC affiliate) has the story here 

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