I know very well that not paying a loan of any sort can traumatize your credit score, and depending on the loan agreement could also impact you legally.
What about installment plans? Where no agreement is signed and no money is actually borrowed?
The context is, I went to a US/MO college and each semester was paid by an installment plan of 2 payments. I've never taken any loans out, I always pay the installments in full and in cash. Halfway through one semester I stopped attending. I had already payed the first installment. However the second installment I have yet to pay because I never attend the second half of the semester.
They're now threatening me. If I do not pay this installment they will contact a collection agency. I don't care about the loss of academic credits nor do I care about the transcript. I'm only wondering:
- Do I have a legal obligation to pay them?
- Can the collection agent use the unpaid installment to affect my credit score?