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Negociate PFD on expired SOL collection?

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Joined: 13 Aug 2010
nbv_01's page
Posts: 1

30 Magic Points

Subject: Negociate PFD on expired SOL collection?
Posted on Fri Aug 13, 2010 12:27 am  

As a subscriber to credit monitoring, I woke up yesterday morning to discover a Major Derogatory has been placed on all 3 credit reports! Here are the details...

Collection Agency: NCO Financial
Major Deroatory
Dergatory Amount $7,421

This is a result of a voluntary repo from 2005 with American Honda Finance. Over the years, Honda sent it to various collection agencies but they never placed any reporting on my CR. In addition to NCO now reporting this, Honda of course shows a Derog on my CR, last updated in 2006.

In any event, the original date of delinquency was Nov 2005. I'm in California, so the SOL is expired. I unfortunately did not send a DV letter to NCO within the 30 day period of receiving their notice, but I'm going to send a DV letter anyway to see if they will respond.

My next step would be to send a letter stating the SOL is expired and demand they remove it from my CR. If this doesn't work, what can I do next? I'm not legally obligated to pay it, but I want this gone from my CR! Perhaps I need to determine if NCO is working the file or owns it? If Honda in fact sold it to NCO, I wonder it I can dispute Honda's derog reporting on my CR due to "incorrect reporting", they still show a balance and charge off status. I heard once the orig creditor sells it, they must report the balance as 0.00 and state it was sold or transferred?

Back to NCO, if they do own it, I wonder if they would be willing to negociate a pay for delete? I would think they would be willing to settle for a portion of the balance, maybe 20% (or is that too high)? Otherwise, they will not get a dime since the SOL is expired. It makes sense but will it work? Assuming I have no luck with disputing Honda's reporting, I am curious if I can convince the CA to ask Honda to remove it?

Thoughts anyone?


Joined: 08 Feb 2010
Aaron's page
Posts: 2632

48565 Magic Points

Subject: derogatory remark
Posted on Fri Aug 13, 2010 6:33 am  

Hi nbv,

I heard once the orig creditor sells it, they must report the balance as 0.00 and state it was sold or transferred?
Yes, this is true. However, in case of charge-off by the creditor the charge-off will stay there on your credit report for 7 years if not removed by the creditor. For that you need to make the payments to your creditor, and negotiate a "Pay for delete" (PFD) agreement. This can happen only if the creditor agrees to pull back the account from the collections.

However, as this account is past the Statute of Limitations (SOL), you can try disputing this. As for
Back to NCO, if they do own it, I wonder if they would be willing to negotiate a pay for delete?
The collection agency may agree to PFD, but they won't be able to remove the charge-off from your credit report.

If you are willing to pay this, and if you want to settle you can do that for 40% or may be 30&. In general debt settlement lowers the outstanding debt amount by 40-60%. However, this can vary according to the agency.

Another thing that you should remember is that negotiating the settlement can restart the SOL. So, beware before you start the settlement negotiations.


Keep in touch Smile

Subject: xWUfOGLYulpob
Posted on Tue Aug 05, 2014 9:51 pm  

yYAlyH Hey, thanks for the post.Thanks Again. Want more.

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