If you have an outstanding debt and you want to remove the listing from your credit report, the easiest way to do it is to negotiate a Pay for Delete agreement. The concept of Pay for Delete (PFD) agreement is simple – you agree to pay off your entire debt amount and the creditor/collection agency agrees to delete the account from your credit report in return.
Can a Pay for Delete Agreement restart SOL?
A Pay for Delete agreement will not restart the Statute of Limitations period on its own. The Statute of Limitations is the time period your creditors have to sue you for non-repayment of a debt. If the Statute of Limitations (SOL) in your state has expired, then the creditor has lost his right to sue you for payment. If you negotiate a Pay for Delete agreement with the creditor and pay off the debt in monthly installments, then the SOL on that debt will restart if you default again. However, if you pay off the debt in a lump-sum, then the SOL on that debt will not restart.
For example, the Statute of Limitations for debts (written contracts, oral contracts, promissory notes, and open accounts) in Texas is 4 years. So, if you have defaulted on a debt in Texas, check whether the SOL has expired. If the debt is more than 4 years delinquent, then the SOL has expired and the creditor or collection agency can no longer sue your for the debt. If a creditor or collection agency calls you regarding payment of the debt, make sure they understand that they cannot sue you, but you will still owe the money.
If you are not sure you owe the money, you should ask the creditor to verify the debt first. If the creditor can confirm that you owe the debt, send the creditor a Pay for Delete Letter. If the creditor consents to a Pay for Delete agreement, the account is erased from your credit report as soon as you pay off the entire debt amount. Make sure you get the agreement in writing so that you have evidence that the creditor has consented to delete the account from the credit report.
It is essential to keep in mind that the expiration of the SOL will not end your obligation to repay the debt. You will still owe the debt and should contact your creditor to arrange a settlement or a payment plan in addition to a Pay for Delete agreement. The creditor will only be able to sue you if you default on the new agreement.
wow now I'm totally confused. Should I send a DV first? MY PFD states I am not accepting this as my debt...
"This letter is to inform you that the validity of this debt is disputed."
and
"Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act."
Okay I just compared the dates above (which were TU's dates) with experion and equifax, and of course, none of them match!!! Now what???
Ooops
that guest post was me, just didn't sign in!
repairing credit
Hi JenAndGiggles,
Welcome to this community :)
I moved out of an apartment complex April 30, 2008, and they said I never gave proper notice, even though I have copies of everything I gave them.
You should try disputing this item with the credit bureaus. You have the proof to show that the apartment complex wrongly charged you. If you don't owe it, you shouldn't pay it.
As for the other accounts, are you sure you owe to all these collection agencies. If you are not sure, you can send debt validation letters to them through certified mail, requesting a return receipt. Negotiate "Pay for delete" (PFD) agreement only with those who properly validates the debt. Get the agreement in writing.
Should I just take care of the apartment for now, and let the others fall off???
If you owe then it is better to pay off, and remove the negatives if possible.
MY PFD states I am not accepting this as my debt
You can remove this line from your letter as you should negotiate PFD only when you know that you are going to pay on a valid debt.
I just compared the dates above (which were TU's dates) with experion and equifax, and of course, none of them match!!!
Please let me know which dates you are talking about?
Thanks,
Aaron
The dates below are the other negatives on my CR. These are the dates TransUnion is reporting they will no longer be on my CR. These dates contradict the information Equifax and Experion are reporting. Should I dispute these dates with the CRAs?
Oct 2011
Jan 2013
Mar 2013
May 2013
Aug 2013
Oct 2013
Nov 2013
Mar 2016
The only thing I have to prove I gave proper notice is a copy of the letter I put in their drop box along with my rent payment for the month. They cashed the check, so they had to have found the accompanying letter. I gave all this information to the new apartment complex I want to move into, but they will not let me lease without clearing this up. I really don't have much time to have everything tied up in disputes.
I know the other accounts are mine, so is a validation letter still relevant?
I made some pretty stupid decisions regarding my credit. I think it should be illegal for companies to give credit cards to college freshmen!
Hi Jen,
I really don't have much time to have everything tied up in disputes.
I am afraid I don't know what to say about this. You had paid them before, and you have the proof of that. Still they are asking for the money. So, I don't think there's a guarantee that this time they will report this correctly after your payments.
I know the other accounts are mine, so is a validation letter still relevant?
You have mentioned that these accounts are in collections. Thus, it is always better to start with the debt validation, atleast to know the actual valid amount you are required to pay.
Thanks,
Aaron
Quote:
I really don't have much time to have everything tied up in disputes.
I am afraid I don't know what to say about this. You had paid them before, and you have the proof of that. Still they are asking for the money. So, I don't think there's a guarantee that this time they will report this correctly after your payments.
I haven't paid them for the $2000 fees they are wrongly charging me. I wrote them a letter stating my intent to vacate the apartment at the end of my lease and I included it with my rent check... a check that they cashed, so I know they had to have found my letter, even though they say they didn't.
repairing credit
Hi Jen,
I just meant that you paid them what you legally owed to them :) Thus, you are not required to pay them any more.
Thanks,
Aaron
Charge Off
I see you have plenty of responses but I can't find the exact answer that I need. My husband has a charge off from a utility company. $152 that we now pay easily.
My questions are:
1. The original creditor is still listed as the reporting agency on his credit report. Will a PFD work?
2. We are in TX, SOl 4 years, the debt is only at 2 years. Will sending a PFD restart the SOL.
3. If they do not respond what happens? I have read over and over not to pay it unless they respond in writing.
4. Each report has a different address....which one do I send to? And none of them list the account number in full?
5. So I will pay the utility company directly even though it has been charged off?
Thanks in advance so much!!
Getting approved for a FHA loan
Hi Carol, I am concerned about getting approved for a home loan hearing about the new requirements for Freddie & Fannie Mae where having credit disputes on credit reports will get a loan denied.
I have one dispute on one credit report from Experian that says, I did dispute the debt over two years ago and it says on my report, Account in dispute-reported by subscriber. In fact, it will be off of my credit report on 12/5/12.
What is the best way to resolve this in order to get approved for my home loan? Thank you!