I am beginning my efforts to remove several collections from my credit reports. I have disputed the validity of these accounts, and a few were removed. For the remaining accounts, I plan on offering the creditors full payment of the debt, in exchange for full deletion of all references regarding this account from my credit profile and full satisfaction of the debt. I have prepared "Payment by Deletion" letters for each of the debts. I understand that I must make sure that the collection company/creditor sends me a copy of the Universal Delete Form, which they are supposed to submit to the CRA's. Of course, when I called my first creditor (ProCollect), the lady said that they were able to provide a letter which shows Payment in Full, but they were unable to demand full deletion by the CRA's. I am not surprised by this, but I would like to know if anyone has had any success with Payment by Deletion with ProCollect. Also, in my research I've learned that UDF's are now being replaced by most bureau's with other reporting systems. If I am able to negotiate a signed agreement for Payment by Deletion with another creditor, is there anything else I need to have them send me, in place of a copy of the UDF? I was under the impression that by offering Full Payment of the debt, I would receive little hesitancy by the Collections Agencies to agree to my terms. What is the reason they would turn down my payment, just so they don't have to submit the UDF? When I called ProCollect, I informed the lady that although the debt was not mine, since the amount was only $40, I preferred to pay the amount in full, rather than invest my time dealing with disputing the record to all three agencies. I told her that there is absolutely nothing in it for me, if I were to pay the debt, and have a pd collections account remain on my reports. Can the Geniuses on this forum provide me with a little insight/guidance/etc? Thanks again
The statement that they cannot delete is 100% pure BS of the highest quality, weight, density and moisture content. They can delete but it is my understanding that their contract with the credit bureaus has a clause stating that they won't do it if the listing is correct. If you pay them you are basically admitting that it is correct. You would need to have an agreement from them signed by someone in authority stating what the full balance is before paying them. The only way I know of to get them to take it off your credit report is paying them with a bank certified check that has a contractual agreement to remove within a certain period of time. If they cash the check and fail to remove then you would have grounds to file suit for breach of contract. They would have to honor the contract if they signed and cashed the check. Your check would need to be accompanied by a cover letter which also contained the same wording as the check so they can't claim you tried to put one over on them. The check should be attached to the cover letter with a paper clip since banks don't like to have their checks stapled or pinned. They don't like holes in their checks. Also, please be advised that they can refuse such checks and send them back to you uncashed. There is no requirement that they have to cash such a check.
Accord and satisfaction . . . cashing the check will bind them IF there is a good faith dispute as to the validity of the debt or the amount alleged owed.
In accord and satisfaction, does the settlement of the good faith dispute in effect form the "consideration" that binds the creditor to the agreement, or are the requirements purely a result of statute on a state by state basis?
Oh, you asked me this too quickly, lol. Actually, the new amount proferred is the "accord" and the payment of such and subsequent acceptance thereof is the "satisfaction" . . . I think. I could have that backwards. Consideration would be the new payment amount (settlement, payment in part of full amount) offered by the debtor. Consideration would be forgiveness of any remainder or acceptance of the part payment as full by the creditor. But to answer your question, accord and satisfaction is a common law doctrine in contract. The elements do vary from state to state but, there are probably none codified insofar as it is a common law contractual theory. Some states require a dispute, some do not. Still, dispute it to be safe.
