I believe you are referring to a pay for delete. That is when you owe a creditor money and you both agree on an amount that you will pay on the debt and the creditor will delete the negative listing from your report. But not all creditors will agree to this.
A pay for delte letter is made to the original creditor or debt collector to remove an outstanding debt from your credit report.
Remember to always ask for debt validation before requesting a pay for delete. The pfd should be sent before even starting negotations with the collector for a repayment plan. If they agree to the pfd you can make re payment arrangements and when it is paid it will be removed from your report.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.