Pay for delete letter: Negotiate to remove negative listing

Submitted by Laura on Fri, 02/08/2008 - 06:27

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

And another:

Collection Agency
666 Evil Street
Hades, Hell 00000

Re: Collection Account for Original Creditor
Account #: 00000xxxx
Amount: $25.00

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digits.

In the spirit of compromise, I am willing to pay this account IN FULL (or settlement percentage) if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

If you agree to the terms and accept this agreement, certified funds for the settlement amount of twenty-five dollars ($25.00) will be sent to Collection Agency in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.

Collection Agency agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Collection Agency will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

If you agree to the above terms, please prepare a letter on your company letterhead explicity agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Collection Agency. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.

Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

Mr. INeedCreditHelp
123 Any Street
City, State ZipCode

Wed, 02/20/2008 - 19:27 Permalink

These both are some really good examples of pay for deletion letters, I think it is great that you guys come on here and share this knowledge. Whenever you need to go for pay for deletion agreement you can use the letter of deletion.

Sat, 03/08/2008 - 08:58 Permalink

I totally agree, we need more samples of letters on pay for delete agreement and someone who is willing to assist the person having the problem either through the forum or through pm if the person does not want to put all their private information out there for everyone to see. I think that people on this site would do just about any thing to help another out.

Sun, 03/09/2008 - 12:23 Permalink

Well, I don't know if I can spend alot of time answering individual questions, but I will sure try -- we all need good, solid economic help. I counsel clients with credit and liability management for a living. And, I'm sure I can learn alot by counseling on this site.

Bring it on! I'm not the smartest man in the world, but I have resources! Of course, anyone is welcome to PM me, too.

Fri, 03/14/2008 - 06:27 Permalink

Great offer charles, thank you for extending your time to the community like this, hopefully those in need wil take you up on the offer, sometimes people need the individual help one on one.

Sat, 03/15/2008 - 11:08 Permalink

good examples but would this strategy work if they have evidence that it's your debt?

Mon, 03/17/2008 - 01:26 Permalink

Yes it does work. A pay-for-delete helps in negotiating with the CA for a lower amount and if they agree, they settle for the amount negotiated and remove the negatives from the report. So you are actually paying for the removal and also the debt when you negotiate for the pay-for-delete.

Mon, 03/17/2008 - 08:59 Permalink

Whenever you send a letter of deletion for negotiating for pay for deletion agreement, you should always do it by registered post. This is because you need to have a proof that the creditor has agreed to your pay for delete letter which you will require if they do not remove the debt from your report once you pay off the debt in full.

Mon, 03/17/2008 - 09:16 Permalink

A cashier's check or a money order, for example, but not a personal or business check.

Thu, 03/20/2008 - 05:35 Permalink

Would be something that you have actually exchanged the cash for an that you can not recind, like a money order or certified check.

Sat, 03/22/2008 - 21:24 Permalink

It is possible to rescind money orders or cashier's checks, it is simply not common to do so.

Sun, 03/23/2008 - 07:48 Permalink
firebird (not verified)

What if you have a debt that shows up on your credit report, that looks like other fraud credit inquiries that's been happenning to your credit, BUT after an investigation, you find that while the other credit inquiries are indeed fraud, the debt that has been marked a negitive judgement on your report IS actually your own debt?

The error that had happenned was that the bill was never sent to the correct address, but to the previous address you had lived at, 2 months after you had moved!

Had the bill been sent to your proper address, or had there been any attempt to contact you via phone, you would have paid it, as your track record show that you always pay on time, never late.

How would it be possible for you to pay back the amount of debt but at the same time have them remove the negative judgement from your report, because it is an error on their part that you had never received the bill?

Any advice at all would be great!

Thank you!

Mon, 03/24/2008 - 02:39 Permalink

You would need to have the judgment vacated. Contact an attorney, or the court clerk to find out how (if) this can be done.

Mon, 03/24/2008 - 06:32 Permalink

Wow firebird, I bet this was a big surprise, I agree with morningstar on this one, I would think that the local court where the judgement was filed could answer all your questions on the removal. Have you tried to contact the original creditor on this case? Do you know who was representing them, what firm? You may be able to contact them also and see what can be done. I wish you luck with this. Please keep us updated.

Thu, 03/27/2008 - 02:01 Permalink

I bet that probaly does happen alot. They are suppose to forward all mail but I know from recent moving it doesn't always happen. It does seem unfair. You think they would have sent out a few bills before sending it to the credit report. I know I am SWAMPED with med. bills. Sometimes I have to take turns paying one set one month and another the following. Usually the ones I didn't pay for the previous month will send me a letter saying it needs to be paid on in 30 days or they send it.

Thu, 03/27/2008 - 21:17 Permalink

You can only pay what you can pay fireyone, just keep doing it they way that you are and you will keep the wolves at bay any way. When do you expect to have results on your accident, maybe then you can pay them all at once and get rid of them. goodluck and hang in there.

Fri, 03/28/2008 - 00:46 Permalink

I wish I knew the answer to that magic question. I have never been so annoyed with anything in my life. I was planning on paying off those bills and the two credit cards that aquired such large balances. After I was hurt we had to use them ALOT. The girl who answers my phone calls at th atty office keeps sayong "after this round of shots' or "it hasn't been a year yet..we are right on schedule" I told her to tell that to my bill collectors and she just stays quiet and takes the convo. elsewhere. I had trigger point inj. last week and have a follow up in two weeks. Seeems to be working some. Even so I still have to have these possibly evry six months or so since there is no way to fix my arm to preaccident condition. I think they are also waiting on chiro records. Chiro moved and we are having problems getting my records even though he keeps saying hes on top of it. Go figure. My atty. actually sent me a letter telling me that I would have to try to get them since they were getting no where. I'm pating them for what? K this is off the thread topic but hey you asked and I needed to vent.

Sat, 03/29/2008 - 13:15 Permalink

well, once you get your money you can pay them off and be done with it, I don't think it is fair in the mean time that you get all the fees that go on the card for being late.

Sat, 03/29/2008 - 22:40 Permalink

I totally agree. I think once the debt is sold from the OC the price should freeze. I mean by the time they sell it the amount owed has already doubled from over the limit and late charges. Maybe they keep adding them so when they offer you a settlement that is still twice the amount of the original card..then you think your getting a deal.

Sun, 03/30/2008 - 01:37 Permalink

It is a bunch of crap how it ends up building and building, I don't think it should be legal. The OP never gets the money once it reaches this point anyway, usually by this point it is sold off at a fraction of the price and the zombie debt buyer makes the bucks on it if they collect it, which is usually not the case.

Sun, 03/30/2008 - 02:47 Permalink

There sure is enough junk debt buyers out there. When I visited a site on it recently I coul not believe how many there is. My eyes got tired of looking at the list.

Sun, 03/30/2008 - 22:40 Permalink

There is a growing market for it, then they open up a call center and train collectors on how to collect, unfortunately they only give them enough training to violate the law or just on the brink of violating it. I think a lot of them work on a commission or get a bonus for collecting also which gives them more incentive to be jerks.

Mon, 03/31/2008 - 02:34 Permalink

Very true goodnatured. This was done in an area near me a while back. My tanning bed lady opened a call business and attempted to collect old debts. I remember her asking me if I wanted a job and I inquired about it. She told me it is really easy. I guess if you find being a jerk really easy then it would be. Not for me. She didn't stay open very long. Wish this would happen to all of them.

Tue, 04/01/2008 - 23:03 Permalink

Ok....I read the VERY FIRST post, that was written here. Maybe I misunderstood it..I don't know. it goes. As I was reading it, the post stated the ACCOUNT NUMBER was NOT recognized, with the amount of $50.00 owed. stated about making some form of arrangements to pay it off. Here's my question, about THIS situation.......................if you DON'T recognize the account and you DON'T recognize the CA who is trying to collect on this, why would you 'negotiate' ANYTHING, if you are not even sure if THIS debt is yours?

Wed, 04/02/2008 - 13:52 Permalink

This is a case where debt validation certainly come in to play, if you don't believe the debt is yours then don't pay it. So, certainly get the debt validated.

Sun, 04/06/2008 - 23:20 Permalink

Sometimes I have CA's calling me, even AFTER the 'accounts' have expired. USUALLY, when I ask for some kind of paperwork, to PROVE the account is still 'outstanding', they tell me they "are not obligated to send me anything." Gee......I wonder why!?LOL

Mon, 04/07/2008 - 03:51 Permalink

I do believe they are obligated to send you what you request, they want paid right? Why would you send money and have no proof of owing it, thats just crazy for them to expect that.

Mon, 04/07/2008 - 10:49 Permalink

I can just copy and paste to use this letter right?

Mon, 04/14/2008 - 15:24 Permalink

Hi erb,

Yes ofcourse you can do a copy and paste but make sure the descriptions and numbers that you mention are completely yours. Have to be a little careful. :)

Wed, 04/16/2008 - 05:12 Permalink

True, make sure that you proof read the letter before sending it off, nothing like copying all the wrong information, LOL, just make sure every thing in the letter is your stuff. Goodluck, hope your situation improves.

Sun, 04/20/2008 - 00:04 Permalink

I love the copy and paste feature. Proof reading is definately a good thing to do.

Mon, 04/21/2008 - 01:03 Permalink

Proof reading is a must when you are sending any correspondence, copy and paste or not.

Tue, 04/22/2008 - 01:20 Permalink

I can be guilty of not proofreading but I do still try to do it as long as I am not in a hurry.

Wed, 04/23/2008 - 20:45 Permalink

The main thing to do in this case is replace own information with the one existing in the letter. The cause, complains, law section might need alteration because every letter is case specific. Am I right?

Thu, 04/24/2008 - 06:24 Permalink

I would imagine that it would. Each letter depending on your situation would need to conform to what you need it to. there are alot of sample letters on this and the other forums people can access.

Sun, 04/27/2008 - 00:56 Permalink

i think the general idea of the letter is to give you some idea of what to write, you don't have to use it at all, but get a general idea of how to word it.

Sun, 04/27/2008 - 12:04 Permalink

Thats what I was thinking. Someone like me could really find a sample letter very useful since I am not the best at documents.

Mon, 05/05/2008 - 22:28 Permalink

Sample letters always provide a general idea of how to write a letter. One can however use the sample letter by just simply changing the personal details, or he might also take help of the sample letter to format his own one.

Thu, 05/15/2008 - 08:29 Permalink

Thats something I would do. I am really crappy at writing any type of letter.

Sun, 05/18/2008 - 23:12 Permalink

Well then aren't you glad that this site is here to offer the help that you need, I think alot of times people are so frustrated at this point that they can not think clearly enough to get a letter down on paper, I think that is when these letters really come in handy. It at least gives people a good starting point.

Mon, 05/26/2008 - 16:35 Permalink

Actually the sample letters helped me a lot in getting hint of how to write the letter. At the time of urgency, these letters come in handy. I am really grateful to this forum and its members for making this community a wonderful learning platform.

Tue, 05/27/2008 - 08:05 Permalink

The most interesting feature of creditmagic is that the sample letters are made sticky in the credit repair section which makes it easy to access. We can browse the credit repair section of creditmagic and refer to these sample letters anytime we need.

Wed, 05/28/2008 - 10:57 Permalink

Am I ever glad to have found this site. Great tools and information. The 2 sample letters of deletion are great, but I have a question about adding to them.

Having read quite a bit on this topic elsewhere, I've seen others suggest to state or imply that "you want them to know that you’re dealing with lots of different creditors and the ones who are willing to deal with you will be the ones who will get paid . . . and, that you only have a small chunk of money to work with".

I am wondering what others think about this and if I should directly state this in my letter of deletion? The above statement accurately describes my situation.



Thu, 05/29/2008 - 23:17 Permalink

I agree with you Randall. If you mention this with your pay for deletion letter, I too think that they will try to come with favorable terms with you. This is really a good idea. Actually there is a lot to learn from this forum and thanks for joining this forum with your ideas.

Fri, 05/30/2008 - 11:21 Permalink

Randall, PLease be careful about sending a letter that will admit your obligation to the debt. This will make any future DV etc very difficult. What if you send theose letters & you car dies. Well, now you cant pay all of them but they have a letter from you saying yeah, I owe you this money but, I am only going to pay the forst 5 ppl who contact me....

Fri, 05/30/2008 - 16:05 Permalink

Thank you. Yes, I will be be careful and not rush this. I'll take today and though the weekend to work on this.

I've drafted a first version letter of deletion which states among other things, "My letter should NOT be construed as an acknowledgement of liability for this debt in any manner".

Fri, 05/30/2008 - 17:15 Permalink

Hi Randal
I think that you will be at risk if you follow your previous idea " ones who are willing to deal with you will be the ones who will get paid . . ." Your present letter, of which you have given a hint, is much more acceptable and formal.

Sat, 05/31/2008 - 06:01 Permalink