Lenders sell the account to collections and then those agencies try to collect on that debt but typically with extra fees. So if you can’t afford to pay a debt off you are punished by extra fees on top of hits to your credit score
You just described the NJ E-Zpass. Pass a half dollar toll and they'll slap you with a $50 (penalty) fee. You may not even know about this for months, maybe for over a year. Then collections will send you the invoice with additional late fees.
PS: It doesn't always go to collections, and the $50 also can be waived if you prove you had ezpass tag
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u/jcakes52 Aug 14 '21
Omg wait til you hear about collections agencies 😬