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I have heard of getting a Pay for Delete agreement with a CA prior to paying, but has anyone ever done a Settle for Delete agreement?

Thanks everyone




I would think that would be along the same lines. Try it. Other's will be along to advise you further.

Sub: #1 posted on Sun, 06/22/2008 - 11:37

ladybug ladybug

(Posts: 2757 | Credits: 282.45)

Same difference.

Sub: #2 posted on Sun, 06/22/2008 - 12:46

Morningstar Morningstar

(Posts: 1634 | Credits: 124.78)

Thanks guys..I just wasnt sure if it was even possible.

I see the letters in the DIY section here, but whats the process? Lets say they offer me a settlement, do I then present the Settle for Delete letter/agreement?

Sorry, I know dumb questions but I want to make sure I dont screw this up. :oops:

Sub: #3 posted on Sun, 06/22/2008 - 20:04

Unregistered


If you are attempting to settle and not PIF and the CA agrees to itin writing, stipulate that they not sell the remaining balance or you will find yourself in the same situation with another CA. Depending on the CA, I would doubt that they would delete for anything less than th efull amount. YMMV.

Sub: #4 posted on Mon, 06/23/2008 - 01:31

Unregistered


They might, they might not. It depends on the company.

My own company's policy is that you can't have your cake and eat it too. The only way we will agree to delete is if you're going to pay in full. If you want to settle, we can probably work out a number; but then we won't delete - we will report as settled for less than full balance.

Sub: #5 posted on Mon, 06/23/2008 - 01:48

DebtCruncher DebtCruncher
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(Posts: 2296 | Credits: 269.79)

What is a collection agencys motivation to leave it on the credit report??

Sub: #6 posted on Tue, 06/24/2008 - 06:53

Unregistered


The CRAs likely have contractually obligated the CAs to keep errors and alterations to a minimum. Also, removing accurate information skews the purpose of the CR: risk management.

Sub: #7 posted on Tue, 06/24/2008 - 11:06

Morningstar Morningstar

(Posts: 1634 | Credits: 124.78)

Quote:
What is a collection agencys motivation to leave it on the credit report??

It is a consequence of letting the account default. Essentially the threat of knowing it will be on your credit for 7 years is supposed to keep you from becoming delinquent in the first place.

To touch on what Morningstar has said - the bureaus actually frown on a creditor removing tradelines in a pay-for-delete situation. I have memos and policies from the bureaus that say a creditor should only remove a tradeline when it is a bona fide error.

Because it does defeat the whole purpose in having CRs -- which is to let the next guy know what they may be getting themselves into if you apply for credit. It is meant to gauge who can handle their obligations and those who can't/won't. If everyone can delete the bad items, and leave the good items on their credit report, then what's the point in even having them?

For my company's position, rarely do we delete (I have deleted maybe 2 accounts this year so far). But ultimately it is our goal to get an account to pay in full (not settle), and so if we can use the bureau as leverage to get that full payment, then we will agree to delete in lieu of settling.

Sub: #8 posted on Tue, 06/24/2008 - 17:49

DebtCruncher DebtCruncher
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(Posts: 2296 | Credits: 269.79)

A pay for delete can work in a few rare cases.
1. Settlement with them due to violation of law.
2. Agree to delete or not respond to a dispute.
The credit bureaus frown on this practice and the three I got were simply a promise not to respond to a dispute.If they don't respond you get your delete and everyone is happy. :lol:

Sub: #9 posted on Tue, 06/24/2008 - 20:09

cajunbulldog cajunbulldog
Moderators
(Posts: 4859 | Credits: 425)

You might also do some research into whether or not Rstrictive Endorsements are binding in your state. Also, non-disclosure agreements, like the poster above said. If you pay, they promise to not verify a dispute. But, like a couple posters have stated, settled for less generally will not score you a delete.

Sub: #10 posted on Tue, 06/24/2008 - 23:52

NASCAR_Devil NASCAR_Devil
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(Posts: 4665 | Credits: 308.23)

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