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JesMLT
Joined: 14 Feb 2009
JesMLT's page
Posts: 16
658 Magic Points
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Subject: illegal to pay for delete????
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Sun Mar 01, 2009 6:37 am
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I had a collection agency recently tell me it was illegal to remove debts from my credit reports.
They called me and I told them I was aware they had already submitted the debt to the credit reporting agencies. I asked them for a pay for delete situation and the person I spoke with said that was illegal.
I said as far as I had researched that was most definitely not illegal and if they wanted to deal with me they should be expecting a letter asking to validate the debt from me first.
So, is it illegal for them to remove the debt from my credit reports?
And did I handle this situation in the right way? |
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cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 1455
6339 Magic Points
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Subject: not illegal, but also not an entitlement
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Sun Mar 01, 2009 3:47 pm
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The collection agent is playing you.
This is a very confusing area. Your credit report is actually paid publication. The federal and state laws that govern how your credit is reported are regulations to prevent companies from reporting debt without proper foundation or proof.
The main threat that a collection agency has against you is to file a civil lawsuit. In court, they can go after assets and garnish your paycheck. Also, a judgment can stay on your credit report for 20 years. This is very expensive for the CA, and they can lose the case if they don't have all the evidence the law requires.
Changing the way this debt is listed on your credit report is considered a mediated settlement. It is perfectly legal. The collection agent bought your debt for pennies on the dollar. These people don't get a salary. They get a percentage of money you pay on this debt. There is a good chance that the person that calls you six times a day doesn't get a dime if the case goes to court.
The big problem is that people are saying that you can get rid of all your debt with "credit repair". That is untrue. There is some backlash to be sure. The person that calls your house works at a call center. The collection agency pays big bucks to report accounts to the CRAs. The managers and owners may be getting more strict about what kind of settlement they will accept. Also the different companies selling debt to the collection agents must be frustrated with repeat offenders running up new debts after running their credit reports through the settlement washup.
This is why it is so important to go through all the steps. Have you made this collection agent validate this debt? Look through the forums and start with sending a CMRRR asking for proof that they own this debt, and proof that you signed an agreement to pay this money. Send them another letter stating, that although you are not acknowledging this debt as yours, you would be willing to pay a settlement as long as they agree in writing to delete the tradeline from your credit reports. Good luck. |
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Guest
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Sun Mar 01, 2009 4:21 pm
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That's what I thought!
Yes I am working on getting a validation letter together.
Thanks for the information  |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Mon Mar 02, 2009 6:47 am
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Pay for deletion agreement is not illegal and it depends on the creditor or the collection agency to agree to it or not. But, if they do not agree to pay for deletion agreement, you cannot force them to do so. Now, even if the creditor does not agree to pay for deletion, you should try and pay off the debt to avoid judgment, because judgment may adversely affect your credit score.
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Carol |
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ensurepune
Joined: 17 Feb 2009
ensurepune's page
Posts: 102
510 Magic Points
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Wed Mar 04, 2009 7:01 am
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JesMLT if you are sure enough that you will not loose the case in the court and have most of the proofs with you then i think you no longer have to worried about the CA.
Just ask them to go with all the legal procedures.Make sure they won't unnecessarily make you worry in the name of legal proceedings.  |
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sandra
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Subject: pay for delete option
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Mon Sep 13, 2010 3:56 pm
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| If you offer a pay fpor delete option after the dent is validated, should it be 100% of the debt for a reduced amount. The debt originated in 2008 and I am assuming that he collection agency is cosidering this a total loss. |
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cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 1455
6339 Magic Points
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Aaron
Joined: 08 Feb 2010
Aaron's page
Posts: 2675
48566 Magic Points
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Subject: pay foe deletion
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Thu Sep 16, 2010 10:14 am
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Hi sandra,
| Quote: |
| If you offer a pay fpor delete option after the dent is validated, should it be 100% of the debt for a reduced amount. |
No, there is no such rule. However, the creditor or collection agency may agree to "Pay for delete" (PFD) more easily if you pay off the settled amount in full.
Thanks,
Aaron
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Gski24
Joined: 23 Oct 2010
Gski24's page
Posts: 5
131 Magic Points
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Subject: Pay for delete question?
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Sat Oct 23, 2010 3:20 am
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I just checked my credit report, it had some items in collections. They are mostly smaller collections, that are valid, I just got done reading a forum about a pay for deletion letter option. I do have the means to pay in full for these collection items at this time, but only want to pay IF the items can be removed in full from my credit report.
The collection items range from $12 to mid $100's and $200's, and an $800 item. There looks to be a duplicate reported item for the same $284 amount reported twice from two different collection agencies. Should they both be there or should one be removed?
Also, my report lists each collection item with the collection agency and the original creditor. If I send an pay for delete letter to the collection agency and its accepted will there still be a negative notation from the original creditor even though the debt was settled and the collection agency agreed to delete their negative item?
I want to improve my score to be able to purchase a house and will pay in full these debts if the collection agencies will remove the items from the credit reports. Will CA's do pay for delete for such small amounts?
Please advise
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cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 1455
6339 Magic Points
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Sat Oct 23, 2010 12:01 pm
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PFD is legal and I need more information to help you
do you have all your credit reports?
what state are you in?
what is the original creditor and the name of the CA?
what is the date of first delinquency? 30 days after last payment
this information will help me make suggestions specific to your case. The state will determine the statue of limitations for this debt. knowing the name of the OC original creditor, will help show if there is a specific govt regulating agency that can help so rt out the truth. Knowing the exact dates is very important too.
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CMRRR Templates
How to PFD, OPT-out, Complain, etc
All credit articles at EHOW |
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NVJohn
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Subject: If you negotiate a pay and delete letter with Collection Age
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Tue Feb 01, 2011 7:00 am
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Hi I have a Medical item on my credit report that now is with a collection agency.
The item is listed on my report under Collection Items with Ownership listing Allied Collection Serv. / my account # / the Medical Univ Clinic.
Equifax list item as Unpaid, Experian as account seriously past due and Transunion as Automated account.
If I send a pay and delete to collection agency will that cover the Medical clinic since they were the original creditor but sent this to a collection agency?
I live in Nevada
thanks for all your help in getting this off my record. |
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iris
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Subject: if i made payment on it years ago
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Mon Sep 19, 2011 7:21 am
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| if i made some payments on the accounts a few times previously can i still do pay for delete letter or did that basically acknowledge the account is mine |
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mike vegas
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Subject: ?
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Wed Jan 04, 2012 10:52 am
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| hey NVJOHN. i was wondering your luck with allied collection services.did they agree to a pay for delete letter? im trying to fix my girls credit and she has a couple allied collections on her report.any info will help thanks. |
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