Pay for delete letter: Negotiate to remove negative listing

Submitted by Laura on Fri, 02/08/2008 - 06:27
Forums
Credit repair

What is a Pay for delete letter?

A Pay for delete agreement is normally made with the original creditor or a collection agency (CA) to remove an outstanding debt listing from your credit report.

If the name of the creditor or the CA gets listed in your credit report with a particular debt, you should first ask for debt validation by sending a Debt Validation (DV) letter to the creditor. Once your debt gets validated by the creditor, you need to send a Pay for delete letter.

A Pay for delete letter is sent as part of your negotiations with your creditor for a repayment plan to pay off your outstanding debt. If the creditor agrees to a Pay for deletion agreement, the negative listing gets removed from your credit report once the debt has been repaid in full. You should always get the Pay for delete agreement in writing so you have proof that the creditor agreed to delete the negative listing from your report, if they refuse to remove the negative item from your report after you pay off the debt.

Sample Pay for delete letter/Pay for deletion letter

Name of Collection Agency
Address of collection agency

Re: Collection Account for Original Creditor Account Number
Amount: $50.00

Dear Sir or Madam,

This is for your information that I am disputing validity of the debt referred to above. I am not aware of the account number and you have not informed me of the existence of this account.

I am willing to pay this account IN FULL (or a settlement percentage, whichever is feasible) if you agree to immediately delete the account from the credit reporting agencies (namely Equifax, TransUnion and Experian) that you have reported to, and validated this account. My sole purpose is to get this item removed from my file. This letter should not be interpreted as recognition of the debt or acknowledgment of liability for the debt.

If you accept the terms of this agreement, the certified amount of $50 will be sent to your collection agency provided there is complete deletion of any reference to the debt from my file on all the credit bureaus that you have reported to, and the debt is validated. As the full amount demanded will be paid back, there should not be any waiting period to delete this item from the reporting bureaus.

Your agency should delete all information regarding the account from my credit files within 10 business days from the receipt of the payment, as mentioned in this agreement. The terms of this agreement will not be discussed with anyone but the original creditor. No third party will be informed if contacted and no acknowledgment of the debt, any kind of payment, or settlement will be discussed if I am contacted by the Reporting Agencies.

Following the acceptance of the agreement, please prepare a letter on your company letter head unambiguously agreeing to the aforementioned terms and conditions and have it signed by your agency's authorized signatory. This letter will imply a legal contract, enforceable under my state law.

If I do not receive an approval letter within 15 days of your receipt of this letter, I will withdraw this offer.

Please communicate regarding this account to the address mentioned below.

Your Name
Your Address
State Zip Code

JMo1345 (not verified)

I have a closed credit card that I recently agreed to settle on w/ 3 monthly payments, totalling $1461.27 - about 55% of the actual debt ($2656.84). Is a pay for deletion letter an option for me at this point in the settlement process?

Sun, 01/03/2010 - 18:02 Permalink
Need a new start (not verified)

I have several debts to repay. I am guilty of the debt. I was going to try an pay a few off in about a month or so, however, if it is going to decrease my score (it is already low) than what's the point. The accounts are over 2 years old.

Wed, 01/06/2010 - 03:44 Permalink
goodnatured

I paid off four accounts a few years ago, it did nothing good, all it did was change them to paid, but they stayed in the negative column and they did not raise my score by paying them off. If I had it to do over again then I would have put the money towards a current debt and have them taken care of.

It is totally your choice but paying them off will not increase your score, the only thing it will do is stop collection activity, you will want to make sure that if you pay them off that you get a paid in full letter so that a future collector don't come around and try to collect the debt again, I have had this happen and have had to produce this documentation to prove it to them before they would leave me alone.

Wed, 01/06/2010 - 18:16 Permalink
cornelia Clemons (not verified)

i want to see how i can get old debt that's paid off my credit report because i'm trying to buy a house

Wed, 02/03/2010 - 15:39 Permalink
Justin

Hi Cornelia,

If you have paid off a debt but it is still listed in your credit report as unpaid, you can send a dispute letter to all the 3 credit bureaus one by one. This will remove the wrong listing from your credit report, otherwise this will hurt your credit score.

If you face any trouble in writing a dispute letter then you can refer to a sample dispute letter in
http://www.creditmagic.org/repair/dispute-letter.html

Thu, 02/04/2010 - 07:29 Permalink
Amanda (not verified)

I have a debt listed from a company who then sent it to a collection agency. They are listed separately on my credit report but are the same debt. Who do I pay? The CA or the original company? How long does it take for them to remove the item?

Fri, 02/05/2010 - 20:35 Permalink
Leila

I need some advice here...

I've actually been successful in removed one of two negative items on my credit report. The only negative item on my credit report has been a Bank of America credit card. I disputed it through the credit agencies which verified it, and couldn't do anything. The account was closed in 2007 and I really didnt get much correspondence from their collection for a while.

Two days ago, I get an email alerting me to a negative item on my Experian report. I immediately go to see what it is, and it's some company called Calvary Portfolio Services. They say I owe about $4000.

Now I immediately get concerned and think Im a victim of identity theft. I immediately dispute the item on my credit report within 10 minutes of getting the alert. It was verified within a day!

So i call Experian on the phone. It turns out, the original creditor sold the account this past January, but instead of trying to collect the $2k that the debt was closed for, they're trying to collect double! The rep. at Experian told me that it's legal for it to be reported twice on my report since it notes thats the account was sold and purchased, but she found it odd that they were trying collect almost twice what the debt is worth! She refiled a dispute for me, but I don't know what to do.

I'm trying to repair my credit, and yet, it made my credit score drop 12 POINTS!!! For a debt that has been on there for a while.

I know that's probably alot of backstory but I wanted to make sure I get sound advice...

Who do I write the pay for delete letter to at this point? I would assume the original creditor? Because if I can negotiate with them and get it removed, then the new collection agency has to remove it right? Or am I wrong?

Comments? Thoughts? Advice?

Thanks for your help!!!

Leila

Sat, 02/06/2010 - 08:06 Permalink
Randi (not verified)

What if the collection agency refuses to accept deletion for paid in full agreement? Can you make that same offer to your original creditor?

Tue, 02/09/2010 - 04:44 Permalink
SCVMom

Dear Carol,
How does one go about disputing several items from the same CA? Individually or all together? Does one offer the full amount or some percentage for pay for delete?

Thank you!!

Wed, 02/10/2010 - 22:18 Permalink
Aaron

Hi SCVMom,

What you need to do is first go for debt validation of all of the debts. After the debt validation, if you think you don't owe the debts, you can dispute the items with the collection agency (CA). You can dispute a couple of items at a time. Don't try to dispute all the items at the same time. If you try to dispute all items at one go, the collection agency may reject your claim.

As for the Pay for delete, if one pays the due amount in full, the amount is reported as "Paid in full", else if the debtor settles the amount to be paid then it will be report as "Paid a settled".

Thu, 02/11/2010 - 05:40 Permalink
mika (not verified)

I have a collection account on my credit report that has a zero balance. When I called the collection agency to find out about this account, they told me my insurance company paid for this two years later. I was told they had to claim it with someone. They still refuse to take it off my credit report. What should I do about this and how can I go about getting this off my credit report.

Fri, 02/12/2010 - 19:39 Permalink
Aaron

Hi Mika,

If the report shows that the account has zero balance, that will not harm your credit score. So you need not worry about it. Moreover it may fall off your credit report after 7 years. However you can still try with the credit bureaus to remove the item off your credit report.

Sat, 02/13/2010 - 11:36 Permalink
rose (not verified)

i will like to know why i have neg item in my credit report is they are paid in full all of them .. how can i get them off my report?

Tue, 02/16/2010 - 02:40 Permalink
Aaron

Hi Rose,

Were you delinquent on your account, or was it sent for collections? If the account was charged off, while paying the debt, didn't you request the collection agency for a "Pay for delete" agreement? If you have not asked for a "Pay for delete", the delinquency or the charge off will be reflected on your credit report for 7 years.

With the Pay for delete agreement, the charge off would have got deleted from your credit report. Now, there is no other way to remove the negatives from your report. They will fall off after 7 years. As it's reflecting "Paid in full", it won't have much of a bad affect your credit history.

Tue, 02/16/2010 - 06:08 Permalink
kris (not verified)

I am dealing with two medical collections. One happened about three years ago and was collected for $441. I paid four or five bills at the hospital and none ever totaled $441. Now I have a collection for this amount. I contacted the collection agency and they told me "we hold the keys so you better pay up."

The other collection has to do with an insurance filing that was denied and turned over to collection while we were dealing with it. This one for $140. Both of these were under the same insurance carrier and I have a feeling that is the main cause of the problem.

I've never had to deal with collection so I decided to call the collection agency and I told them I am not certain about the validity of these debts but I will pay them if they delete them. Neither would listen.

While on the phone with the account representative at the second collection agency she told me to "shutup and get off" then hung up the phone.

What is wrong with these people?

Anyways, how can I deal with this? My wife and I are preparing to purchase a home and my credit is still good enough to obtain whatever financing we need.

Wed, 02/17/2010 - 21:04 Permalink
Aaron

Hi Kris,

You should first ask the collection agency to settle for the original amount that you owe. If they don't comply, you can report the matter to the Federal Trade Commission (FTC). Along with the letter to the FTC, you can attach the proof of your original medical bill, and the proof of the amount you owe.

You can also check for the details of the company with the Better Business Bureau, and report the matter to them. Other than this you can consult a lawyer too, who may be able to help you legally.

Hope this helps.

Fri, 02/19/2010 - 11:44 Permalink
Kristin Richmond (not verified)

What if they CA or original creditor has already contacted me over the years (obviously I know about the debt) will this still work or is there a different way I should go about it?

Thu, 02/25/2010 - 19:48 Permalink
Aaron

Hi,

You can contact the company and request them. The company wants to get back the dues, so they will definitely try to work out a plan with you.

Fri, 02/26/2010 - 12:11 Permalink
Aaron

Hi Agentmommy,

As you have already paid the account, it won't be possible to delete the negative details on the account from your report. This agreement needs to be done before the payment is made. The creditor won't agree to your request. However, there's not much to worry. Just check the status of your account on the credit report. If it's balance is being reflected as zero, there's nothing to worry.

Hope this helps.

Regards,

Aaron

Wed, 03/03/2010 - 07:19 Permalink
iola (not verified)

i pay off my collection acount.i dont owe any money.do i still need to pay so they to delete the acount from my credit report?

Fri, 03/05/2010 - 16:29 Permalink
todd (not verified)

i have deleted items on a statement from transunion that are still on my credit as opened. what do i do

Tue, 03/09/2010 - 00:51 Permalink
Aaron

Hi Todd,

What you can do is dispute the item first with the creditor or the collection agency. You can send a 623 dispute letter to the creditor or the collection agency through certified mail.

Hope this helps.

Regards,

Aaron

Tue, 03/09/2010 - 11:51 Permalink
Lisa (not verified)

The CA that holds my account has already offered a settlement amount I am willing to pay. What type of letter should I ask for before or after paying the settlement amount.

Tue, 03/09/2010 - 14:05 Permalink
Lisa (not verified)

Add'l information regarding the previous post: This is a judgement

The CA that holds my account has already offered a settlement amount I am willing to pay. What type of letter should I ask for before or after paying the settlement amount.

Tue, 03/09/2010 - 14:08 Permalink
Aaron

Hi Lisa,

First and foremost, you need to appear in court as there is the judgment, though the collection agency (CA) has offered a settlement. Before going in for the settlement, you should request them to provide you with a written copy of the settlement.

Along with the settlement, you can request the CA to agree to a "Pay for delete" agreement. Send the CA a PFD letter. You will find a sample PFD letter at http://www.creditmagic.org/repair/pay-for-delete.html . With PFD agreement, your account will get reported as either "Paid in full" or "Paid as settled".

Hope this helps.

Regards,

Aaron

Wed, 03/10/2010 - 09:50 Permalink
Rusty (not verified)

Dear Carol,
I spoke with the collection agency before I viewed your website. They have made me an offer and have given me 10 days to pay. Did I blow it by allowing them to make me an offer? When I asked them to take the collection off of my credit report, they said that they couldn't because they didn't purchase the debt, however, on my credit report it is listed under their name.
Thank you!

Sat, 03/13/2010 - 01:28 Permalink
Rusty (not verified)

By the way, according to the credit report, the date of last activity with original creditor is 6/1/2006. The statute of limitations in California is 4 years...

Sat, 03/13/2010 - 01:35 Permalink
Aaron

Hi Rusty,

Can you be more clear on what you need to know?

Thanks,

Aaron

Sat, 03/13/2010 - 12:02 Permalink
MIRNA (not verified)

What percentage would be fair to offer to seattle and old account? how much is right to negotiate?

I am wanting to seattle some accounts but not for the full amount..just not sure how much to offer..

let say owed 650 from 2004.. what is the

Tue, 03/16/2010 - 21:41 Permalink
Aaron

Hi Mirna,

Debt settlement can lower your outstanding debt amount by 40-60%. However, it also depends on the creditor or the collection agency with whom you want to settle. If you think it won't be possible for you to pay high amount, you can make a copy of your monthly income and expenditure, and attach it with the settlement letter to be sent to the creditor or collection agency.

For more details on debt settlement you can refer http://www.creditmagic.org/blog/2009/04/06/debt-settlement-the-way-it-w… .

Hope this helps.

Regards,

Aaron

Wed, 03/17/2010 - 06:55 Permalink
Aaron

Hi Dee,

I think, you need to send them a hardship letter if you think that you are facing problems paying bills. However, can you tell me why would you send letter for the medical bills to a home lender?

Thanks,

Aaron

Thu, 03/18/2010 - 05:11 Permalink
Edward Scott (not verified)

How effective is this action and can you recommend/provide other forms of Pay for Delete letters. I am seriously contemplating to take this approach with two creditors with whom I have charged-off credit cards. One with a balance of over $15K including interest. and the other just over $1,200.00 The originial balance was $12K and I recently recieved a letter via a collection agency asking for $15K. I am interested in working directly with the OC (Original creditor) do you agree with this approach? Of course this will only be done once I have validated the debt which I know are valid debts. Any advice or recommendations you can provide is immensely appreciated.

Thu, 03/18/2010 - 11:47 Permalink
sdcards

Since the basic purpose of the internet is to share the knowledge and to communicate with each other, I can say that blogs and forums are playing one of the vital role in sharing the knowledge and to communicate with each other.

Fri, 03/19/2010 - 12:05 Permalink
kellykdawn (not verified)

Hi Carol, I am so thankful for this website. The information has been so helpful to me! I have some questions for you. I have a judgement against me on my credit report for $2600 from Atlantic Credit and Finance. They sued me a couple years ago, I was served papers, I never went to court. I had contacted this collection agency prior to being sued and I attempted several times to reconcile this debt with a payment plan. They refused and required me to pay in full. I never could pay in full so I ceased all communication efforts. Now, I am trying to clean up my credit report and I would like to get this deleted from both my credit report and the public filing section of my credit report. I am confused as to what I should do and in what order. I live in Michigan and I know that this state has a six year statue of limitations, but does that apply to this? And if so how do I calculate the six year limitation in regards to this situation? Secondly, should I first send a Dispute of Validation letter to the collection agency? I am assuming that I legally gave up the right to dispute this when I didnt show up in court. Is this true? Thirdly, Should I send a pay for delete letter to this company? And if I should, should I offer to pay in full right off the bat or should I lowball the offer and see what happens? How do I deal with the court system as far as deletion goes? Can I get it removed from both court records and my credit report? Thanks so much, Kelly

Sun, 03/21/2010 - 16:04 Permalink
Julie Kirby (not verified)

We need to pay a Judgement that shows up on my husbands credit report but when we called Wells Fargo(they are who is listed) they can't find anything. I have a copy of the Judgement and it offers know help in finding out how to pay. Can we pay the court? We need this off yet don't know who to pay?

Wed, 03/31/2010 - 14:51 Permalink
Cara (not verified)

Are there any credit repair companies that you feel are legitimate? I am worried that most of them are scams. I need to remove some old charge offs and late payments.

Sun, 04/11/2010 - 17:59 Permalink
Aaron

Hi Cara,

Welcome to this community :)

To know whether or not a credit repair company is authentic, you can check it with the Better Business Bureau. However, the best option to repair credit is self repair credit. First pull a copy of your credit report. Check the status of the accounts on your report. If there are any wrong listings, dispute those with the credit bureaus. You will get a sample dispute letter at http://www.creditmagic.org/repair/dispute-letter.html . Send it through certified mail, requesting a return receipt.

If there are any negative listings try to pay off those. Before paying off the debts, request the creditors to agree to a "Pay for delete" (PFD) agreement. PFD reports your account as "Paid" and deletes all negative details of that account. You will get sample PFD letter at http://www.creditmagic.org/repair/dispute-letter.html .

For more details you can visit http://www.creditmagic.org/repair/myths-credit-repair.html .

Thanks,

Aaron

Mon, 04/12/2010 - 12:32 Permalink
Aaron

Hi Taleathia,

What you can do is send a "debt validation letter" to the creditor or collection agency who now holds the debt. Send the letter through certified mail, requesting a return receipt. You will get a sample letter at http://www.creditmagic.org/repair/sampleletter-debtvalidation.html .

Debt validation is the process through which you come to know to whom you owe the debt, and what is the debt amount.

Thanks,

Aaron

Thu, 04/15/2010 - 12:20 Permalink
csteck43 (not verified)

I have already sent the letters, and then I saw the pay for deletion letter, did I do something wrong? I requested that they remove the negative lsitings because I have already paid for them.. What should I do next if that doesn't work?

Sun, 04/25/2010 - 02:22 Permalink
Aaron

Hi Csteck,

As far as I understand from your post, you have already made the payments. If it is so, then the creditors or the collection agencies may not want to work with you anymore on that account. Still you can try.

It is not necessary that you will have to use the sample letter available here. If you can write one of your own correctly, then you can send that to the creditor or collection agency.

Thanks,

Aaron

Mon, 04/26/2010 - 11:56 Permalink
AC (not verified)

I am looking for a form type letter where I can have creditor sign off in agreement at the same time as the money/funds are exchanged. My issue is over a commercial account being reported in my personal credit...the balance will be paid, but I want all evidence Id the report retracted as the balance is from a returned business check with company name, logo and address differing from personal? This is a currency exchange and I believe they knew the account was wrong but reported anyway in order to elicit response...!

Mon, 04/26/2010 - 14:48 Permalink