I need to pay off 5 old debts as part of a condition to fund a new loan and need advice how to approach the creditors. How can I PAY the debt and have them REMOVE the entry from my file? Can I negotiate a partial payment of say 50c per dollar and still have them remove the entry? What is a UDF I hear mentioned? Please, any experience with doing this will be greatly appreciated
First I would contact the creditor and ask them if they are willing to offer a settlement amount to pay off the debt. (Do it in writing by certified return receipt) Yes or no, next explain to them that you have a small amount of money to pay off some debt but that paying a debt in collection is no benefit to you. Here is how the sample letter words it: Please note, I am not agreeing that this is mine and have the option to seek further proof from your agency of this debt. I am sure you are aware of my right to dispute this debt and request full proof of the obligation. Paying this unverified debt to you means little to me if we cannot mutually agree that you will report the debt as mentioned below. While I realize that your purpose is to collect debts as a collection agent, I am also aware of what a paid collection would represent for me, which is not favorable. Please do not quote to me that you are unable to change the listing or I will be forced to cease and desist our communication and request full lengthy verification of the alleged debt. My goal is to arrange a term acceptable to both us since this debt is questionable and dispense with it. I will pay your company the amount of $xx as payment in full for the full satisfaction of this account. Upon receipt of the above payment, your company has agreed to change the entry on my credit reports to Paid, no lates or delete it completely. You further agree to remove all previous notation of delinquency and any negative comments. If you concur with these terms please acknowledge with your signature and return it to me. You agree the terms herein are confidential and you have the authority to make such decisions. No payment will be made without written confirmation. Upon receipt of this signed acknowledgment, I will immediately mail you funds priority mail. This is not a renewed promise to pay but rather a restricted offer only. If no terms can be met, no new arrangements will be made and the offer will be void. I have only limited funds to use and if terms can't be met, I will negotiate with another creditor that is willing to delete with payment. Name of Creditor: Signature of company officer : Date: Sincerely, Name Address Social security number Do not sign your name! Send all certified return receipt. The UDI form is what they submit your changes on. You want a copy of it to see what they are submitting and once in hand, if you submit it also, my understanding is that it's off in 48 hours. YMMV
