illegal to pay for delete????

Submitted by JesMLT on Sun, 03/01/2009 - 06:37

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?

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.

Sun, 03/01/2009 - 15:47 Permalink
Anonymous (not verified)

That's what I thought!

Yes I am working on getting a validation letter together.

Thanks for the information :)

Sun, 03/01/2009 - 16:21 Permalink

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.

Mon, 03/02/2009 - 06:47 Permalink

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. :wink:

Wed, 03/04/2009 - 07:01 Permalink
sandra (not verified)

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.

Mon, 09/13/2010 - 15:56 Permalink

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

whether the debt is validated does not decide whether you pay 100%

Mon, 09/13/2010 - 22:07 Permalink

Hi sandra,

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.



Thu, 09/16/2010 - 10:14 Permalink

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


Sat, 10/23/2010 - 03:20 Permalink

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.

Sat, 10/23/2010 - 12:01 Permalink
NVJohn (not verified)

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.

Tue, 02/01/2011 - 07:00 Permalink
iris (not verified)

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

Mon, 09/19/2011 - 07:21 Permalink
mike vegas (not verified)

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.

Wed, 01/04/2012 - 10:52 Permalink
Ckellum (not verified)

I had a medical company send me a ltr stating if I paid the Amy owed the would delete from my CR and it would reflect in 30 days and it did. Also for most medical bill on the CR it's pretty easy to have those removed as it is a Hippa violation for the original creditor to sell your info. With all of that being said pay to delete works.

Wed, 06/20/2012 - 02:51 Permalink
IngEv8712 (not verified)

I just paid all my credit cards and collections, my middle score is 574 and I was wondering what else I could do to improve my score by 90 points.... we are trying to purchase a house in the near future. The collections were medical and they are now paid in full, the collections agency owner refused to have the collection removed from my CR. I didn't cancel my CC's but they're paid in full, and I also just paid off a signature loan at my bank, my question is, since i have to purchase a new car and my mother in law agreed to consign with me (best MIL EVER!), will getting this new car note help my score?

Thu, 09/27/2012 - 20:47 Permalink
Clearcredit (not verified)

If the collection agency does not clear your credit report after paying in full go to their client. The the client is entity that you originally owed the debt. In April 2012, I had credit score of 575, 20 items in collection. Today 11/21/12, I now have a 745 credit score and 0 derogatory items on my credit. I simply stopped dealing with the collection agency and went directly to the client. I have went as far as contacting the CEO of specific companies everyday, emailing board of directors... Since then, I have started a small business helping consumers clean up their credit. What sets me apart is that I skip the middle man and go directly to the source... Stop dealing with the collection agency. I only talk to the real decision makers.

Wed, 11/21/2012 - 20:58 Permalink
Williamnet (not verified)

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Wed, 04/08/2020 - 04:29 Permalink