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

Conn’s HomePlus is a popular retailer that offers in-store credit financing for big-ticket purchases like furniture appliances electronics, and home goods. But what happens if you fall behind on your payments or stop paying your Conn’s bill altogether?

Overview of Conn’s Financing and Collections Process

When you finance a purchase through Conn’s in-store credit program, you agree to make monthly payments over a set repayment term, usually 12-36 months. Conn’s offers promotional financing with no interest if paid in full within the promo period. Otherwise interest of 10-30% applies.

If you miss a payment, Conn’s will try contacting you and your references to collect payment. After 30 days of nonpayment, Conn’s will declare your account in default. At this point, the account can be sent to collections, reported to credit bureaus, and incur fees. Legally, Conn’s can sue you for the debt but you won’t face jail time for nonpayment.

Here’s a more detailed look at what happens at each stage of missed payments

• First Missed Payment – Conn’s billing department will try contacting you by phone and email. They may offer a short extension.

• 10 Days Past Due – Any no-interest promotion is revoked and retroactive interest is charged. Late fees around $15 are applied.

• 30 Days Past Due – Your account enters default status. Conn’s continues collection attempts and contacts your references.

• 60-90 Days Past Due – Defaulted accounts are sent to third-party collections agencies. Your credit reports will show a negative status.

• 120+ Days Past Due – Conn’s may decide to pursue legal action and sue you for the debt. But you can’t face jail time for being unable to pay.

At any point in the process, you can contact Conn’s to discuss payment plans or options like voluntary surrender of merchandise. This can minimize further penalties and damage to your credit if you’re facing financial hardship.

Losing Promotional Financing

One of the first consequences of missing a Conn’s payment is losing any promotional 0% interest financing if applicable. For example, say you finance a $2,000 mattress with 24 month no-interest terms. After 12 on-time payments, you miss your next payment by 3 weeks.

Conn’s policy revokes the promotion immediately once an account is 10 days past due. All back interest charges from the original date of purchase will be added to your balance. So you’d owe interest on the initial $2,000 going back 12 months. This remains in effect even if you catch up on payments.

Losing a hard-earned no-interest promotion can mean paying much more in additional interest charges. It’s best to contact Conn’s right away if you anticipate payment issues to see if exceptions can be made.

Fees from Late, Missed, or Returned Payments

Along with interest penalties, late payment fees will be applied to your Conn’s account with any delays in making monthly payments. Fees are around $15 per incidence, though amounts can vary:

• Late payment fee: $15 after 10 days
• Returned payment fee: $15 if a payment doesn’t clear

These fees are detailed in your original credit agreement but can add up quickly. On a 36 month payment plan, just 4 late fees equal an extra $60 owed. Set up automated payments or payment reminders to your mobile device to avoid unnecessary fees.

Credit Reporting and Score Impacts

Like most credit accounts, Conn’s reports the status of your account each month to the major credit bureaus. If you miss payments leading to a default status, it will seriously harm your credit.

Negative marks will show on your credit reports with Equifax, Experian, and TransUnion. Defaulted accounts remain for 7 years. Too many defaults can sink credit scores by 100 points or more.

A lower credit score makes it harder to qualify for loans, credit cards, utilities services, and affordable insurance rates. Poor credit also limits options for financing future needs through Conn’s.

Debt Collection and Legal Action

Within the first 30 days of nonpayment, Conn’s will make attempts to contact you and your references by phone, email, and written notices. The goal is setting up a repayment solution and avoiding further default.

If unable to resolve after 30 days of no payment, Conn’s will declare your account in default. At this point, remaining account balances including fees and interest may be turned over to professional debt collectors. This is a last attempt at recovering losses.

Although rare, if other collection efforts fail, Conn’s can pursue legal action like filing a lawsuit against you for repayment. The goal is garnishing wages or placing liens on property. However, debtors cannot face jail time for being unable to pay in states like Texas.

Alternatives to Default – Voluntary Surrender

Defaulting on your Conn’s financing can harm your credit and lead to aggressive collections. But alternatives exist if you can no longer afford payments.

Conn’s voluntary surrender program allows you to return merchandise to avoid collections accounts being opened. You’re still responsible for paying a fee based on the item’s condition but this can be less than forced repossession.

Other options include:

• Requesting an extended payment plan
• Settling – Paying a lump sum that’s less than the full balance
• Selling items yourself and paying off the account

As soon as you suspect potential issues affording payments, call Conn’s support line to go over the alternatives. This can minimize further late fees and credit damage.

The Bottom Line

If facing trouble with your Conn’s financing payments, act quickly to understand your options and consequences. Loss of no-interest promotions, late fees, hits to your credit, and aggressive collections tactics can all result from nonpayment.

Communicate with Conn’s support early on to see if exceptions to policies can be made or alternative repayment arrangements arranged. Damaged credit or legal action from defaults with Conn’s make it difficult to get financing approval in the future.