Company A can report to the credit reporting agencies that they have an unpaid debt that has been sent to collections. If your furnace dies in the middle of the

Company A can report to the credit reporting agencies that they have an unpaid debt that has been sent to collections. If your furnace dies in the middle of the winter and you don't have enough cash on hand to buy a new one, you might attempt to put the purchase on credit. The store would check your credit status before opening an account with you. In this case, the company filed a false report and will end up paying for it.