Who should get a Pay for Deletion Offer

Question: Hello I just found your pay for deletion sample letter and I plan to use it for two accounts of my credit report. My question is do I address it to the Original Creditor and settle with them or with the collection agency. I also planned to offer the full amount is exchange for the deletion because the debt is not beyond my current means and I just want it removed will this help my case? Thank you so much for your time and advice it is priceless to me.

Answer: First, I want to make sure you understand that “pay for deletion” sample letter is typically used with a collection agency, not the original creditor. You probably already know this but I just want to reiterate when doing a pay for deletion with a collection agency, it will not remove the original creditor’s negative notation on your credit report. The reason being is if the original creditor has “charged off” the debt there is no legal standing which says they must remove the negative notation.

Pay for Delete with Original Creditor

 
It will not hurt to start your negotiations with the original creditor. Just keep in mind it may take some convincing for the original creditor to deal with you after a charge-off has ensued. You want to somehow convince the original creditor to remove the charge-off from your credit report in exchange for payment.

Since you are willing to pay the entire amount, they may agree. And, if you can offer immediate full payment once you get the agreement in writing and signed by the original creditor, your chances may improve.

Make sure you send the offer to someone in upper management with the authority to remove the charge-off from your credit reports. You don’t want the agreement in the hands of a representative who has no authority to make those types of decisions.

Explain to the original creditor you would like to make full payment in exchange for having the charge-off status removed from your credit report. Keep the conversation polite, professional and to the point. If you are successful in making a pay for delete agreement, they may have an agreement on company letterhead or you can send your own agreement via certified mail with return receipt requested. Request the creditor sign and return a copy to you.

Keep in mind the original creditor may agree to delete but that does not guarantee a deletion if a collection agency is involved. Make part of your agreement that the original creditor will contact the debt collector on your behalf and request them to delete also. The only requirement of the original creditor, if they accept payment, is to notify their debt collector that the debt is satisfied and the debt collector must then update their reporting to paid and $0 balance. The debt collector can choose to continue reporting as long as it is accurate reporting. Just make sure you request the original creditor to instruct the debt collector to delete their reporting.

Pay for Delete with Collection Agency

 
On the other hand, a the collection agency may be more than happy to take full payment in exchange for a deletion. There are no laws that require a debt collector to remove a collection account from credit reports in exchange for payment but some of them will. In fact, to the contrary, credit reporting agencies reporting guidelines clearly instruct all furnishers of information that they are not to delete prior, accurate reporting based on payment of the debt. However, a lot of debt collectors just want the money and they will agree to delete.

A pay for deletion with the collection agency will not remove the original creditor’s negative mark on your credit reports. Keep that in mind as you may want to tackle the original creditor’s charge-off negative mark through the dispute process once you are able to get the collection account removed.

The good news is that the older a charge-off, the less negative effect it has on your credit score. Letting it age off your credit report may make sense if you are near the  end of the 7-year reporting period.  The best of luck to you.

 

4 thoughts on “Who should get a Pay for Deletion Offer”

  1. Hi Lisa,
    Well premier wont do a settlement, they told me I have to settle with there collection agentcy. One of them is rushmore which I agreed to settled for $212.00 (4 monthly payments of $53). Collection said they cant remove anything off my report it would have to be premiere. The 2nd collection agentcy First national collection same thing cant remove anything and will settle for 1 payment of $208 so I agreed to both. The collection agentcy are still not reporting on my credit reports just premier is reporting both cards. Talk to premiere and the rep said once they are paid they will update my credit reports to “paid/settled after chargeoff balance 0”. Is this good for my credit report? I also had been fighting them for years that I had credit card protection incase I loose my job, became sick and unable to make my payments etc, premiere will make the payments for 1 year, well they kept saying no you don’t. Well the nice rep transferred me to the department and gave me the number as well (she was very nice glad I got her) and the department verified I did had coverage when I lost my job. I lost my job Mar 09 and they said my coverage was cancel by premier in Nov 09 bu my request which was a bold face lie, I requested that. Premier is sending me claims form to fill out an and if I am approved they will cover the payments up to the time so that’s 9 months and they will remove the chargeoff that is reporting and put settled zero balance. I am just hoping they approve my claim because it has been a long battle, I will keep you posted.

    1. Let’s hope they will honor your claim. If you have proof you had First Premier’s protection insurance you might consider making a complaint to the Consumer Financial Protection Bureau should First Premier reject your claim. They are pretty good at intervening to help consumers resolve issues with credit card companies. You can still pursue First Premier for a deletion after the accounts have been paid in full. But the key is to make a request, in writing, to the executive office (email address in below comment), not a rep answering the phone. Keep me posted and the best of luck to you!

  2. The original creditor charge off my account but I keep getting letters stating give them a call so when I do and ask for the person who sends me the letter, they want transfer me and tells me my account is with a collection agentcy but the collection agentcy has not send me any letters stating they have my account yet so and there not on my credit reports so what do I do, I want this off my credit reports and want to pay it in full or settle it out with first premiere bank. I am working with lexington law firm as well and premiere bank has now flagged my credit reports as a collection debt.

    1. First Premier Bank can be a hard nut to crack. They have probably not sent your account to a collection agency since they are requesting you give them a call to resolve the matter. You may be able to settle it for less than owed but that will not remove it from your credit reports. Legally an accurate negative account can remain for 7 years on your credit reports from the time no further payments were made on it.

      One strategy would be to offer a pay for delete but I would not send payment until you get an agreement from them in writing. It may take several attempts and the letter should be sent to the president or CEO of the First Premier. Try this email for First Premier: presref@premierbankcard.com. Be courteous and simply request a deletion in exchange for payment. You may want to give a little history as to why you were unable to pay the account, such as loss of income, illness or some other hardship that prevented you from making on-time payments.

      Another strategy would be the dispute process if you don’t have any luck with a pay for delete offer. In order to properly dispute the account you will need to find a factual error in the way they are reporting to the credit bureaus. Get all three of your credit reports to see how they are reporting the account. Look for errors in the amount they are reporting, credit limit, opening dates, charge-off dates, open/closed status and even the payment history being reported. There are bound to be mistakes. First Premier should be reporting the same way to all 3 credit bureaus.

      If you find even one mistake, for instance, Equifax is reporting something different than Experian then dispute it directly with First Premier Bank. They have the duty to investigate disputes just like the credit bureaus. It’s called the direct dispute rule.

      You can state in your dispute something like this:

      This is a notice of direct dispute under the provisions of FCRA 623(a)(8)(D). I hereby dispute the accuracy of information of account number XXXX you are currently reporting to my credit files at Experian, Equifax and Transunion.

      The date of last activity, payment history, amount owed, charge-off date, status of account (whatever mistakes you find) does not align across all bureaus. After further investigation of the discrepancies reported to each credit bureau I am concerned that this account does not belong to me. For example Experian states: (insert whatever mistakes you find) while Transunion states: (…)

      As a furnisher of information you have a duty to report accurate information under FCRA 623(a)(1)(A)(B). I have enclosed a copy of the credit reports showing discrepancies in reporting. I hereby request the First Premier account be deleted from my Experian, Equifax and Transunion credit reports as the information being reported is inaccurate.

      It may take a few months to resolve but don’t get discouraged, stick with it until you get the desired results. The best of luck to you.

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