I found this website like a lot of you did and WOW! Lots of great info. I too had some financial problems 2 years ago with no ability to pay our credit cards and they all were charged off.We went from mid 700's to high 400's and lo/mid 500's. We have got credit card charge off's, collections as well as some medical collections, wife went through a tough pregnancy. We are now back on our feet, both with good jobs. Unfortunately, we missed the mortgage curve and are not able to qualify for a mortgage without putting 20% down and both children. We have begun re-establishing some credit with some unsecured credit cards and we are working with a credit restoration-repair firm to hopefully increase our scores so we can buy a house instead of rent. I have read a few payment for deletion letters and they sound good. Would it be wise to start with the medical collection companies or go directly to the original source and offer them a payment, be it paid in full or settlement? If settlement first like I have read in a few threads, what % should I start out with? Is there a letter for a % and another for full balance. Any help would be appreciated. BTW, I read the thread about the 82 point score increase in 8 days. I know some pretty strong salespeople and well lets say I have no openings.
limited knowledge I posted a PFD question a while ago. I had a medical bill that I was unaware of. After some investigating I found that it was a valid debt. I called the collection agency and asked if they do PFDs. They did, so I payed it in person and received a signed letter from then confirming it. Very shorty after, it was removed from my reports, although it has yet to have a significant effect on my score. I assume it will in a while. Regardless, I now have no items in collections and I feel better about it. One of my responsibilities at work is reviewing applications for apartment units, in doing so, I run the applicants credit (with their approval of course). Upon review, a report that does not contain collection items obviously looks better than those that do. I hope someone with more knowledge on the subject can provide a more complete answer. I was just relaying my experience with the PFD process. Best of luck with whatever you decide or negotiate.
