I have 5 collection accounts (all are 4 years old or older and ranging from $100-$1200) that I would like to clear off my credit report. I have some extra $ right now and would like to pay them off but i want to make sure they are deleted from my credit report. I am thinking I should send the pay for deletion sample letter from this site to each CA. One of the CAs sent me a letter a couple months ago offering 60% off the original debt amount. Would it be a good idea to try and negotiate 60% off on my pay for deletion letter for EACH of these collection accounts before i just pay them in full? Or should i shoot for an even better percentage? Thanks, Tim
You're probably going to have to pay in full if you want them to agree to a complete deletion. I guess it can't hurt to try what you're suggesting, but I think your chances are slim. Please come back and share your experience though. I'm very interested in hearing the outcome of your negotiations.
You may want to try and at least dispute them through the credit reporting agencies first. That way they may be deleted and thereafter, you can "settle" those. For the ones which you just can't get deleted, approach them with a pay for delete for a lesser than full amount. But, Josh is right in that PFD's are reserved, if ever, in consideration of full payment. Please be advised that not many debt collectors will agree to delete for payment. They will tell you it's illegal. It is inasmuch as it constitutes a breach of their reporting subscriptions with the credit reporting agencies but, it doesn't violate any statutes.
Thanks for the replies! I have already disputed through the credit reporting agencies and had 1 out of 6 deleted. I think when the CRA requested validation from the CAs, the CAs realized i was working on my credit and maybe that's why one of the CAs sent me a 60% off the original amount offer. Would that make sense? Now if i take them up on the offer and pay it off, what will it show on my credit report? Just a paid off collection account? From my understanding, that wouldn't be very beneficial to my credit rating. Also, does it cost the CA more money to delete than to just update? I find it hard to believe that a CA would use a morality issue as an excuse to not delete. I mean, don't they pay pennies on the dollar for this debt....so if I offer 40%, you would think they would be happy, especially when nobody's contacted me in 4+ years and i'm probably just a dead lead sitting in someone's filing cabinet. On another note, what happens after 7 years have passed. What I think I should do is: dispute the debt with the CRAs, they should remove it, send a cease and desist letter to the CA if they harrass or hassle me.... Then my credit should improve??? Thanks, Tim
When working on a PFD, remember that legally, a CA cannot delete an account just because it's been paid in full. They MUST report it as a valid account that has been paid (which is the accurate description of the account). Now that's not to say a CA cannot delete a tradeline, just that they can't agree to an "I'll pay if you delete" type of agreement. n co What they can do is not respond to requests for validation. So, if you ask that they hold the account and the terms of your agreement in confidence (non-disclosure) so that if you dispute the account after you pay it, they can't respond (per their non-disclosure) and the CRA will have to delete it. You get the tradeline removed, they don't break the law, everyone is happy. Good luck!
The above actually does work. You must speak to someone with authority and getting it in writing is nearly impossible. However, it does work if you can get the right someone on the horn.
I like that idea ccbob. Apex says i need to speak to someone with authority, so should I call the CAs and request to speak with someone who has authority? Also, do you know anywhere that I may find such a non-disclosure agreement template? Should i expect to pay the full amount owed on these collection accounts if i choose to take this route, or should i still attempt to negotiate a lower price? I also already disputed with the CRAs as "not mine" a couple months ago. Will that effect anything if a CA agrees to this "non-disclosure" method and then I request validation and they don't validate?... haven't they just recently validated to the CRAs that I owe the debt when i disputed through the CRAs? Thanks
When a CA validates, all they are doing is confirming or correcting the information that the CRA sends them. Basically, the CRA sends what they have to the CA and asks, "Is this correct?" The CA can: a) say yes, it is. b) say no and return the correct information to the CRA. c) do nothing. if they pick (c), then the CRA must remove the information after 30 (or 45) days because they can't be sure it's accurate (because the CA didn't confirm the accuracy). If you've disputed recently, you might want to wait a month or two (or 6) before re-disputing and you might try disputing something specific rather than just "inaccurate" or "not mine."
By getting someone on the horn, are you implying that I should contact them by telephone? Also, do you know where I could find a non-disclosure agreement template? Thanks, Tim
Templates are a bad idea in general. Debt collectors and credit reporting agencies laugh at stuff that "looks" like a boilerplate. You need to use your own language. I'm not implying that you call them, I'm expressly advising you to call them and ask for a floor manager, FDCPA compliance officer, or anyone otherwise that has the authority to delete a tradeline.
