what is a PFD agreement?

Submitted by davidboura on Wed, 05/14/2008 - 02:15

what is a PFD agreement?

Hi davidboura

PFD is the pay for deletion letter under which you tell your collection agency that you are willing to pay your outstanding debt in full or a percentage of it on the condition that they will delete the item form your credit report. One should always get this agreement in writing, else later you will have no legal ground to stand on.

Wed, 05/14/2008 - 08:55 Permalink

Hi davidboura

Firstly, I welcome you to the forum and secondly I would like to say that Justin is correct but at the same time I want to add that no payment should be made to the CA until and unless you have a signed agreement of the CA in your hand.

Wed, 05/14/2008 - 09:01 Permalink

I din't know that..either. Since you would be trying to take care of the debt, is the CA obligated to take the 'settlement'? What can you do if the CA refuses the 'deal'?

Thu, 05/15/2008 - 10:43 Permalink

Pay on their terms.
Pay what you can or want to pay.
Don't pay at all.

Why would the CA be obligated to settle with you?

Fri, 05/16/2008 - 13:40 Permalink


I guess the answer to your question depends on the debt itself and how much time you have. A new debt with the OC will be REALLY hard to get a PFD on. Then again, If you have a 6 year old credit card debt that the DC wont settle with a PFD sometimes just a simple PFD letter followed my a FOAD letter will do the trick.

Chances are if a DC knows that they wont get anything w/o the PFD they will agree but, that’s not written in stone.

You cant make anyone do what they don’t want to but, you can show them that you are well informed and unintimidated by them, While showing them that YOUR way is best for all concerned.

Sat, 05/17/2008 - 09:52 Permalink

OC = Original Creditor
DC = Debt Collector
CA = Collection Agency
CND = Cease aNd Desist
FOAD = ROFLOLOLOLLMAO...If I'm not mistaken, it means F@$K Off And Die (This would be a CND letter)

Sun, 05/18/2008 - 04:26 Permalink

That really made me laugh. It is good nickname for a CND letter. On the pay for delete..I have to agree..get it in writing before sending any type of payment.

Sun, 05/18/2008 - 23:37 Permalink

Thank you for everyone's 'input'. MORNINGSTAR..i reallt would like to 'reward' you. Why?......because you have such 'neutral' answers. What i mean by that is you don't 'sugar coat' anything. You put it as it is. i think that makes me look at reality more, concerning these CA's. CMB....thanks again.

Sun, 05/18/2008 - 23:43 Permalink

(quote)OC = Original Creditor
DC = Debt Collector
CA = Collection Agency
CND = Cease aNd Desist
FOAD = ROFLOLOLOLLMAO...If I'm not mistaken, it means F@$K Off And Die (This would be a CND letter) (/quote)

ROFL, I just luaghed my fool head off!

Mon, 05/19/2008 - 06:24 Permalink

hey sdcharger the collection agency cant refuse the debt settlement and cant enforce you .Because the debtor has rights to pay the debt upto what you can afford. they have to accept the payment.You have to tell the collection agency that what you can pay.


Sat, 02/28/2009 - 13:35 Permalink

Aby, How is this true? I have never heard of someone calling up a collection agency and saying here is $100 now go away. If this was true it would be great. What led you to this information. Maybe it is something we all are missing and need to know.

Sat, 02/28/2009 - 16:43 Permalink

Basically, you need to keep in mind that CAs pay pennies on the dollar for old debt. Depending on the age of the debt they may still be making a profit taking far less than what you owed your OC. I.e You owe me $100, After 3 years I decide that you are never going to pay me so I sell the debt to Joe for $25 (which is better than nothing)
Joe then approaches you to collect the debt. You offer him $30 to go away and not mark up your credit. He accepts and still makes $5.00. Now, if Joe had all of the documents to satisfy a DV letter and the debt was large enough to still make money with the expenses of a small claims suit etc. Chances are 'Joe' will not accept such a deal.

Mon, 03/02/2009 - 23:28 Permalink

Hey fireyone if you are fully trapped in to the debt and you are not in the state to pay the exact amount what the CA have demanded.According to all your financial status you can tell that you are affordable to pay this much amount.its not like telling here is the 100$.i think you have taken in othere way.According to the federal consumer protection law they cant enforce you to pay,how much they demanded.I am telling in a brief way,there are many clause included in this .you just check out the consumer protection law.


Tue, 03/03/2009 - 06:56 Permalink