How long does a consumer need to go without paying for a service before a company can place them in collections?

Question

I rent a vehicle from Hertz by the week, and I lost my debit card. The office said that they cannot accept a temporary debit card, and that I can wait until I receive my new debit card in the mail to pay for this week. (I have spoken to about three different people and they're all fine with it since they know me now).

I am about 4 to 5 days late, and as of yesterday I have been receiving an automatic phone call every day from their collections department, advising that I need to pay "today". I called them and had them speak to the Hertz office, but that didn't help. They wanted their money ;-)

The reason that the office reps suggested that I wait for my debit card instead of paying now with a different bank account is that it would be more expensive because of how the pro-rate for the week works versus the past 4 to 5 days. It would be worth it to me to pay a little extra if it meant not having a collection on my report. I left it as is because of how confident they seemed in saying that their collections department goes through a very long process before anything would happen. What do you guys think?

Fyi my card is arriving by next Wed.

StephenWeinstein · Accepted Answer

Not even one day.  As soon as you are late, at all, even by 5 minutes, the company can place you in collections, if they want.

Dan B · Answer

When I use a card, if they have the info when I first rented the car, (hotel room, etc), they just use the info they have on file. I don't have to show them a card during the period of use. But if I close out that period, I have to show a card again.

The important thing is you maintained communications with them - that may be a big help in your favor. Maybe.

The important thing is you maintained communications with them - that may be a big help in your favor.  Maybe.

Chief BaggageSmasher · Answer

However long the company wants. Large companies usually have a set time, 30-90 days.
It is usually reported to the credit bureaus if it is more than 1 day late.
4-5 days late with a car rental company is NOT good. They also report the car as stolen. 
Make arrangements to pay them today - offer to do a bank transfer - it will cost you a few dollars, but at least it will stop the damage from getting worse.
And Hertz may also demand that the vehicle be returned immediately, no matter what.

babyboomer1001 · Answer

There is no special time.  It is up to the creditor.  They can place you in collections at any time after you have failed to pay when you owe a debt.  In this case, why haven't you given Hertz your checking account info and the next check number?  Losing your debit card is no excuse at all.  They will probably think that you don't have the money.

A Hunch · Answer

If you have the money in the account, why didn't you take the money out of the account and pay cash.
The story about the cost changing because it's "prorated" doesn't make sense - if you have the car X days, it costs the same no matter how you pay for the car

Also, why do you "rent a vehicle by the week"?  If it's simply short term while your car is in the shop, that would be normal.  But it comes across as though you are renting a car instead of purchasing one.  This has got to be MUCH more expensive.

Anonymous · Answer

Longer than a month probably.

Anonymous · Answer

Typical democrat I see

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How long does a consumer need to go without paying for a service before a company can place them in collections?

7 Answers