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Alright, so I just setup payments to pay off 100% of the collection accounts on my credit report.
Unfortunately, at the time, I thought this was the best way to go about fixing up my credit report.
Then I found this site and learned about requesting PFDs.
So, on the 31st of this month, I already agreed to settle out all of my collection accounts with various companies.
Is there anything I can do other than wait 7 years for these to come off my report now? Can I still dispute the accounts with the credit bureaus and original creditors, and try the 623 dispute method, even though I clearly acknowledged the debt by paying it off?
Thanks for any help, feeling like a real ass at the moment.
Brian
Also, if I just continue on with allowing the payments to go through as agreed, will it even help my credit score at all?
pay for delete
Hi Brian,
Welcome to this community :)
So, on the 31st of this month, I already agreed to settle out all of my collection accounts with various companies.
You have said that you have made the settlements. But have you already finished paying off? If you are still making the payments you can still try and request the PFD.
However, if you have already finished paying off the debts, then you can now send Goodwill letters to the creditors and collection agencies through which you can request them to remove the negatives on basis of your goodwill.
If this too does not work, you need not go into the dispute process. Yo can rather wait for the 7 years. With time the negative impact will lessen. Moreover, if these accounts are showing "Paid" status you need not worry much.
Also, if I just continue on with allowing the payments to go through as agreed, will it even help my credit score at all?
If the negatives are not removed, even if you make the payments your score won't increase.
Thanks,
Aaron
Hey Aaron, thanks for the welcome :)
I meant I have agreed to pay settlements on them. These settlement amounts will be coming out of my account on the 31st.
Thanks Again,
Brian
Moreover, if these accounts are showing "Paid" status you need not worry much.
Wont they show paid after I settle them? From what i've been reading, this really wont help my score any, is that correct?
I do still have 5 more days until the settlements are going to be taken out of my bank account...i've been considering calling all 7 different companies i'm settling with and threatening only to allow the payment to go through if they fax me a PFD agreement.
debt settlements
Hi Brian,
You send in the "Pay for delete" letters to the collection agencies through certified mails.
Wont they show paid after I settle them? From what i've been reading, this really wont help my score any, is that correct?
Sometimes collection agencies do not update the account status to "Paid". This can create problems later. Thus, it is better to check your credit report after the payments, and dispute in case of any discrepancies.
and threatening
No you should never threaten. You can only request Brian. Even if no CA agrees to PFD just make sure that the account status shows "Paid".
Thanks,
Aaron
You send in the "Pay for delete" letters to the collection agencies through certified mails.
Thats the problem though, the settlement payments are already going to come out of my bank account in 5 days.
Would I be better off cancelling the settlement payments, then sending them the PFD letters?
PFD letters
Hi Brian,
Sorry for the confusion. No, you should not cancel the settlements. Just send the PFD letters through certified mail. I have also mentioned that you need not worry much about this. Even if the collection agencies o not agree to PFD with time the negative effect will lessen. What is more important is the new creditors and lenders will get to see that you paid off the debts.
Thanks,
Aaron