What Happens If You Don’t Pay Your Conn’s Bill?

Conn’s HomePlus is a popular furniture and appliance retailer that offers in-house financing to customers with low credit scores. While their flexible credit options make it easy to furnish your home, failing to pay your Conn’s bill can have serious consequences.

Conn’s Will Contact You About the Missed Payment

If you miss a payment on your Conn’s credit account, the company will try to contact you by phone and mail. A billing agent may offer you a payment extension or request that you pay the past due amount immediately. Conn’s will also attempt to reach your listed personal references.

The goal in contacting delinquent customers is to get payments back on track without further action. However, Conn’s only allows a short grace period before applying penalties.

Late Fees Will Be Added to Your Balance

Conn’s charges a late fee anytime you miss a scheduled payment. The fee is typically around $15 but can vary depending on your contract terms. You’ll also be charged for any returned checks or failed electronic payments.

These fees are immediately tacked onto your account balance. Your next monthly statement will show the late fees along with any interest charges.

You May Lose Promotional Financing

If you financed your Conn’s purchase on a no-interest promotional plan, missing payments can cause you to lose the promotion.

According to Conn’s policy, if your account becomes 10 days past due, deferred interest plans revert to the standard purchase APR. Conn’s will then go back and charge interest from the original date of purchase.

This policy applies even if you’ve paid on time for months and are nearing the end of the promotional period, A single late payment during a “same as cash” financing term can stick you with interest for the entire loan period

Your Account Will Go to Collections After 30 Days

Conn’s waits about 30 days after your first missed payment before placing accounts in default At this point, they will demand full repayment of your outstanding balance Conn’s tacks on fees for late payments, returned checks, and account default.

If you cannot immediately pay off the balance, Conn’s sends the account to collections. The debt collection process typically involves:

• Handing your account over to a third-party collector
• Potential lawsuits and wage garnishment
• Hitting your credit reports, damaging your credit score

You May Be Able to Voluntarily Return Items

If you foresee default on your Conn’s account, the best option is to proactively contact their customer service department. Explain your situation and try to work out alternative payment arrangements.

If that’s not possible, Conn’s may allow you to voluntarily return financed merchandise rather than go through involuntary repossession. This can save you from some default penalties and legal hassles down the line.

Conn’s Will Repossess Items in Some States

In states that allow repossession without a court order, Conn’s can seize items if you stop paying. Expect a repo agent to come to your home and confiscate any unpaid merchandise. The agent will also try to collect collateral like televisions and computers that weren’t purchased from Conn’s.

You’ll still owe the remaining balance, fees, and costs related to the repossession. Conn’s will auction off repossessed merchandise and credit your account for the sale amount. If you owe more than the auction brings in, they’ll continue collection efforts.

You Won’t Go to Jail for Unpaid Bills

While missed payments hurt your credit and finances, failure to pay Conn’s is not a criminal matter. You cannot be arrested or jailed for falling behind on credit accounts or financed merchandise in any state.

However, Conn’s can sue you in civil court for the unpaid balance. If you dodge the lawsuit, the court may issue a bench warrant leading to arrest and a mandatory court appearance. But the warrant relates to ignoring the legal process, not simply being in debt.

As long as you respond properly to any lawsuits and court orders, you don’t have to fear being jailed over your Conn’s debt.

Your Wages and Bank Accounts May Be Garnished

If Conn’s sues you and wins a judgment, the court can order your wages garnished until the debt is paid. A portion of each paycheck will go directly to creditors rather than being deposited into your bank account.

In some cases, a judge may allow creditors to seize funds from your bank accounts through a bank levy. However, federal and state laws protect a certain amount of your wages and funds in deposit accounts.

Bankruptcy Can Eliminate Your Debt

Filing for Chapter 7 or Chapter 13 bankruptcy may wipe out some or all of what you owe Conn’s. In Chapter 7 cases, qualifying unsecured debts like credit card balances and personal loans can be discharged. Chapter 13 filers can get unsecured debts reduced through a court-ordered repayment plan.

However, Conn’s can petition to exempt recent purchases from discharge. You may have to reaffirm secured debts like auto and mortgage loans to keep collateral. Overall, the impact on your Conn’s debt depends on your specific bankruptcy situation.

Your Credit Score Will Be Damaged

From the first missed payment, Conn’s will report your account status to the credit bureaus. Late payments show up quickly and remain for seven years. If your account is sent to collections or charged off, that can also ding your credit badly.

Payment problems with Conn’s get incorporated into your credit history and FICO scoring calculations just like any other creditor. A damaged credit score makes it harder to get approved for new loans and credit cards.

Act Fast to Minimize the Damage

The moment you miss a Conn’s payment, your next steps can determine how severely your finances are affected. Contact Conn’s quickly and do your best to resolve the issue with customer service. You may be able to avoid penalties or voluntarily return items.

If you can’t get caught up on payments, consulting a credit counselor and/or attorney may help limit the fallout. But ignoring the situation will guarantee escalating repercussions from Conn’s collections department.