My husband and I have old credit card debt which has been charged off and sold to collections. We want to start rebuilding our credit so that we can eventually get a mortgage loan. I think sending out pay for delete letters would be the best way to go about cleaning up our collections on our credit reports but I have a few questions...
1.) I've noticed that it is suggested to send a DV (debt validation letter) before sending a pfd (pay for delete) but, I am confused because in the sample pfd letter located on this website the 1st sentence states "This is for your information that the validity of the debt has been disputed." and then at the end of the letter it states "In case I do not receive any approval letter within 15 days of your receipt of this letter I will withdraw this offer and request debt validation as per the Fair Debt Collection Practices Act. " These statements would suggest that a dv would be sent if CA does not reply to the PFD. Am I correct in assuming this? So then should a PFD be sent first?
2.) Some of the CA are in both mine and my husbands names. Do I need to send 2 different pfd letters or can I put both of our names on the same letter?
Thanks in advance for any advice you can offer!
pay for delete letter
Hi Jac,
As far as I understand from the letter, the line "This is for your information that the validity of the debt has been disputed" means that you have some doubt in mind about the debt. This letter is based on the fact that you have doubt in mind about the debt, but still you are agreeing to pay for the debt, and would like to remove the negatives on this account. Thus, you are requesting them to remove the negatives.
As for the line "In case I do not receive any approval letter within 15 days of your receipt of this letter I will withdraw this offer and request debt validation as per the Fair Debt Collection Practices Act", it means that if the colelction agency fails to comply to your request, you will withdraw your offer, and send them a debt validation in order to dispute this item.
What you can do is, write a letter of your own by taking help from this one.
Thanks,
Aaron
pay for delete letter
Aaron,
Thanks for the help, I am trying to get all the info I can before sending out letters.
pay for
Hi,
You are welcome :)
However, remember to send the letter through certified mail, requesting a return receipt (CMRRR). With CMRRR, you will be able to retain proof that you had sent the letter, and that the creditor or collection agency have received the letter. If any discrepancies may arise later, you will easily be able to dispute those using this proof.
Thanks,
Aaron
My letter example i sent to collection agency
FR Collection Services
P.O. BOX 30010
anywhere, STATE 73598
Re: Collection Account # xxxxxx4 for ATT Account # xxxx-xxxxx xx
Amount: $128.56
Dear Collection Officer,
This is for your information that the validity of the debt has been disputed. I am not aware of the account number and neither did you inform me regarding 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. My sole purpose is to get the item removed from my file. It should not be interpreted as recognition of the debt as valid or acknowledgment of liability for the same.
In case you accept the terms of the agreement, the certified amount of $128.56 will be sent to the collection agency provided there is complete deletion of any reference to the debt from my file, from all the credit bureaus that you have reported to. As the full amount demanded will be paid back there should not be any waiting phase regarding the deletion of the items from the reporting bureaus.
Your agency should be deleting all information regarding the account from my credit files within 10 calendar days from the receipt of the payment as mentioned in the agreement. The terms of the agreement will not be discussed with anyone but your client on this account. No third party should be informed if contacted. No acknowledgment of debt or any kind of payment or settlement should be informed if contacted by the Reporting Agencies.
Following the acceptance of the agreement please prepare a letter on your company letter head unambiguously agreeing to the mentioned terms and conditions as the above settlement offer and have it signed by the authorized signatory of your agency. The letter will imply a legal contract, enforceable under Tennessee state laws.
In case I do not receive any approval letter within 15 days of your receipt of this letter I will withdraw this offer and request debt validation as per the Fair Debt Collection Practices Act, report your agency to the Federal Trade Commission and file a complaint with the Fair Credit Reporting. I will also seek a class action lawsuit for negligence.
Please communicate regarding this account to the address mentioned below.
Regards,
Lance
Actually, Can I ask whether you have considered starting with a lower offer? See in a negotiation, you need room to move. so you may very well pay the full amount in the end, but at that point the CA will feel like they won.
also, they won't agree to delete in 10 days. 30 days is pretty standard. In fact, they usually screw up the actual deletion which is why the deletion letter is the most important part. so you need two letters. first the settlement agreement, and then the letter that says the are deleting the account from all the CRAs