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
I have to do one of these letters to a collection agency that I was reading about on the debt forum, seems these fools get pretty nasty, so I will get it out tomorro and fax them a copy in advance so they quit calling my place of work and home.
Make sure you also send it via certified mail so that you can prove you sent it.
That part about calling at work is absurd. I hate that they do this. I mean if you don't have a job cause of annoying phone calls then how do they think you can pay them anything. I believe a new set of rules pertaining to debt collection need to be established. The first one being no contact at work. Good natured How does your employer feel about them calling your work place?
fireyone,
You have rights under the FCRA that says if you send a CA a letter telling them only to contact you via letter, and they call you, you can sue them.
Fireyone,
I have started doing something right from the start that seems to be really effective.
I asked them what state they are from, I then go on my states attorney website and their state attorney website and file a complaint right away, then I send them a debt validation and an additional letter along with it that states.
"To make sure that my rights under FCRA are protected, I have made these states attorney generals office aware of our correspondence, they will be contacting your within 10 business days" I then follow up with a copy of the letter to each of the states attorney generals office, just cc everything to them.
I know that Pennsylvania's attorney generals office does an immediate phone call with in the 10 days.
This has seemed to be more effective then arguing with them and them harrassing the crap out of me. I have had them act according to the law and most of the time, stop bothering me all together. You may want to try it. I do it right a way instead of waiting for them to start getting aggressive, this is just my way.
Well, I sent a PFD letter to 2 creditors about 2-3 weeks ago. No response from 1, while the other sent a counter-offer with an acceptable dollar amount, but they said their policies prevent them from deleting a record.
I wrote back stating essentially that this is incorrect, they can in fact delete a record, along with some suggested wording from CMBV22. I have not heard back now in 10 days so I plan on calling them.
How badly will my (already poor) credit score be effected, and for how long, if its' not deleted but listed as "paid in full"? I need these accounts taken care of fairly quickly in order to get a federal job and I don't have a lot of time to "go back and forth". Is there a listing other than "paid in full" that is not as damaging?
Any input is appreciated!
You should insist that they delete, I have paid things off and they are still in the negative part of my report, they state paid, but still have the negative affect on me, I don't think this is fair, but they will not remove them after the fact, I would push it while you have the power, as soon as you pay them, your power is taken away.
goodluck, hope you see positive results soon and goodluck with the federal job.
Hello everyone,
I am brand new to the forum here. I have been reading through the forum for a few days and found some really great information. Here is my issue if anyone can help. Two days ago I checked my credit report with Experian. I found a negative item from GEMBPPBYCR ( GE Money Bank PayPal Buyers Credit?). I have disputed this account through Experian because I have no knowledge of it. I saw in this forum that it has happened to a few. Should I also send them a PFD letter? They aren't technically a collection agency, but I thought it would be a good idea. The report states that the account was opened in 05 and they never contacted me. The balance is $160, which I could pay off right now, but the item will still be there unless they delete it. Any help on what I should do? Thanks in advance to all!
cashiers check
If they cash the cashiers check, how do you get a copy of it once they cash it?
You should be able to track the check from with whom you purchased it, they will know if it cleared or not. You should get a reciept when you purchase the cashiers check with some type of tracking number on it. You should ask this question to the person with whom you purchase the check in the beginning, then you will know a head of time what to watch out for.
Kyle,
You might also want to conside finding out if the ca accepts payment via western union quick collect. You can pay in cash and will have a reciept. Plus, you wont have to pay for cert mail. I think there is a dollar fee for the payment but, it is better than a five dollar postage fee plus cert funds fees.
Hi lostrikan
Yes, you are correct. GEMBPPBYCR is GE Money Bank PayPal Buyer Credit. You can contact them at the following address.
GE Money back
P.O. Box 981400, El Paso, TX 79998-1400
Since the name is listed in your credit report, you can send them a debt validation letter. On getting validation of your debt, you can send them a PFD agreement letter.
Thanks Anthony.
I have the letter drafted from a template provided by Laura in another thread. Thanks to Laura for that! I will sent it certified mail and see what happens then. Thanks again!
she did a good job on this.
yes she does, I would use this one.
I like seeing such good examples. It really helps out a person who is unfamiliar to this kind of thing.
Do you need a recomended credit repair service?
Paying off old debt, will restart the clock on the collection activity for that account. The law states the LAST ACTIVITY. which includes payments. You are doing an injustice to yourself by paying a old debt.Imagine another 7 years?? i Have them removed instead. Don't assume your credit score will increase, because you paid on your debt, it will not. These items on your credit report must be deleted, to have your score raised.
10 years ago I filed for bankruptcy. From then on, I have been doing credit repair on my own and my wifes credit files. It is a full time job just knowing how to handle each negative trade line on your report. There are legitimate credit repair services out there. I used Lexington law, who turned out to be the worst, monthly fee schemers. I did then get tired of the wording, "this item has been verified" letters. So............ I decided to read up on the Fair Credit Reporting Act.
I am now certified. I do credit repair as a part time Job. I have had very good results. It is all in the know how. Took me ten years to learn, but I learned. The draw back to repairing credit is the time involved. Following through on replies, how to handle a collection agencies verification, or validation letter sent back to you. Its like trying to sell real estate, You need to know what you are doing.
bbcr..ignoring you.
Now, now fireyone.
It is just so annoying that someone would try to take advantage of someone who is trying to reach out for help. We get enough of this through junk debt collectors.
Pay for delete
Ok here is my situation. I was out of work due to illness for months. The credit card company sold my account to a collector. They are a law firm which is a little scary. While staying with my sister in Atlanta I found a job. I received a letter at my old address stating that I had 30 days to respond to confrm or dispute the debt. I was getting auto-voice messages on my cell and I returned a call because I didn't kow who they were. I confirmed who I was but did not give them the info they asked for. When I returned to Chicago it was 34 days after the date of the letter. Now what? I got a job in Atlanta and will be moving there. I am working and can pay it off if I can get it rreduced. The debt is valid altough charges have doubled! Most importantly I want to it get off my credit report. Can I still use this pay for delete letter approach?
Help please!
Micki
Yes,
You can always ask for debt validation. Once they send you the validation you can use the letter as an ice breaker to work out a settlement and a pay for delete. I outline the process in my website
You website is awesome CMB, thank you for putting the time into it, I found it very useful and easy to understand.
You know erb I have the same thoughts. It is amazing the good people who will take the time and effort to help another. Thats always leaves me with a good feeling. I hope Micki will go there and if he needs any more aide stop back.
Hopefully he will listen to your advice and get there and post his question there. Hopefully then come back and update us instead of deserting us, LOL.
Always alot of deserting here and there. I always hope for a return visit and update. SOme do Some don't.
deliver deli
stone head stone yes yes are university watch girl woman greed
all key trus
white all greed see stone house
watch this v
bag glass joke greed america dog minor
minor vacant
america man house minor boy red day university ibm letter steven we
Are you having a little trouble with the english language there pal???
LOL, goodnatured, I think they are.
I think so too. It is really hard to even understand what they are actually trying to ask. None of the words really have no relevance to each other.
I am thinking they don't know what they are talking about themselves, so you are not meant to understand.
sometimes that is for the best.
It may seem that way, but the more educated you are the more protected you are.
Yep figured that one out. I never knew how many rights I actually had until I visited this site.
The more you know, the better off you are, you can help others in your life too.
An honest statement.
I have seen a lot more spam on here lately, what is up with it? Are the mods not catching it?
I know usually they are on topof this rather quickly. Can't figure out how this free advertising took off so quickly. There is so much of it.
I usually don't fall for it anyway.
Back to post, what or how much does one usually pay to a company to delete the negative off their report. Is it an extra sum of money or is it in the normal settlement amount? I am getting ready to settle one out here at the end of the month, I am too make contact by the 23rd and wanted to know this before I start talking to them.
thanks in advance, I will look for a reply.
Hi goodnatured
Most of the collection agencies agree to settle for 80% of the total outstanding dues, but initially they may not be willing to agree for a pay of deletion agreement to get the negative listing out of your report. For this you need to negotiate with them, but that too before you pay off the dues. Because one you pay it off, they may not be interested in deleting the listing from your report and as you know that getting it in writing is always essential.
If this is Heritage they sounded like a decent place to deal with. Esp. with only charging for the exact debt and nothing more. It doesn't look like you are getting a clear answer here. If anything list it as a new post since more people are likely to take a stab at it.
paid off debt
ever paid off a debt, so what does the letter from the collection agency say. I need a sample letter.
PAY FOR DELETE
Thank you I have been looking for a way to no pay credit solution people to do this and i beleive that this will help,
Thanks again.
Hi CE
If you have already paid off a debt to the collection agency, they will only report it to the credit bureaus who in turn will list it in your credit report as "paid". They will however not send you any letter telling that you have repaid the debt. For that, all you need to do is to pull out your credit report and check whether debt has been listed as "paid" in your report. However, before paying off the debt, if you can make the creditors agree to a pay for deletion agreement, the debt may not appear in your credit report after you pay it off. However, if there is no PFD agreement, the "paid" listing will be in your credit report for seven years.
Hi Darlene
I don't think that there are any credit solution agencies that offer credit repair services for free. There are always some hidden charges associated with it, which they charge whenever you register. The best way is to repair your credit by yourself. There are discussions in this forum itself which will help you to repair your credit. To repair your credit by yourself, you should keep track of your credit report frequently at least every four months and dispute any listing with the credit bureaus whenever you find any listing is incorrect.
Somemtimes I wish someone would come up with a guideline sheet on the forum to show people where to start repairing their credit. I am also unsure of the steps but no how to do some of it.
I believe when people hear credit repair and do it yourself all in one paragraph it probaly seems pretty overwhelming. I don't think hiring someone to do it for you is the best thing. I am learning how to do it from here but think if it was outlined it would help better.
There is a do it yourself section on the debt forum, they have the step by step guide there, you should go check it out.