HELP!!! Want to do a pay for delete. Need Advice

[jerelj]

I am working on paying off all my collections. They date back to 2008. The last was last reported in January 2012. I want to buy a home with the VA loan in January 2014. 1 year ago I started building credit. I have an installment loan and two secured credit cards. I pay all these accounts on time with no missed payments or late payments. Can someone help me learn what to say when I call these collections agency to do a pay for delete?

 

I have collections account with the following agencies:

1. Stellar Recovery $1139

2. Merchants Assoc $603

3. IC Systems $1773

4. Boulder $1057

5. LVNV Funding $1243

6. Midland Funding $1500

 

Has anyone had any success negotiating with these companies. Where should I start? I do have the finds to pay in full, but I will like to keep my savings as high as possible to help with closing cost when the time comes. Can someone give me a script to say and the amount I should offer? Or an acceptable offer? I am more responsible now and want to settle and have these removed from my credit.

Thanks in advance!

[jerelj]

Also, the credit cards, I pay the full balance off every month instead of the min payment

[jerelj]

Just did some research. Sorry for the multiple posts. Here is what I came up with. Dont know if either is the right way, thats why Im here, waiting on someone to give me some advice.

 

1) Write a pay for delete letter with my settlement offer (15-25% of the debt) wait for response.

 

OR

2) Write a pay for delete letter with my settlement offer and a cashiers check enclosed with the amount I wish to settle with a statement on the check and the letter stating "IF YOU ACCEPT SETTLEMENT OFFER AND CASH CHECK YOU AGREE TO REMOVE ITEM FROM CREDIT REPORT IMMEDIATELY AND NO LONGER REPORT ON THIS ACCOUNT ON MY CREDIT REPORT. BY CHASHING THIS CHECK YOU ALSO AGREE NOT TO REAFFIRM THIS DEBT AND TRY TO COLLECT AMOUNT OTHER THAN AMOUNT I OFFERED TO SETTLE. "

 

OR

3) Call and negotiate an acceptable offer(up to 25%) and ask them to fax me an acceptance or mail it with an authorized signature agreeing to remove the debt once money is sent.

[beli]

Do NOT go blindly paying anyone. First make sure they are collecting for that account, being old they may have sold/assigned to a new CA.

 

Have you tried disputing any of these with the CRA yet? Deleted old addresses, opted out etc? I'd be hesitant to pay old debts that are going to be falling off soon, specially with a settlement as it could restart the legal process should they decide to come after you for the balance owed. Not to mention if the debt forgiven is over $600 you could get issued a 1099c.

 

Have you gotten a recent copy of your credit report?

[jerelj]

I have disputed them and they were validated and left on my credit report. When I called they reffered me to their websites and the give you options like pay in full, 10% off or monthly payments.

Example on the $1773 debt, they offered me to pay $1500 or make monthly payments in the amount of $250 or two equal payments. I dont want to pay that much for the debt.

 

Will sending a settlement offer to update my credit report showing a zero balance work better than the pay for delete option? On the $1773 debt I want to only pay $400. From my research they may have paid $40 for this debt, so they are still making a huge profit. If this way will work, what type of letter do I need to send? Will it affect my score much even though the new debt I have I pay ontime every month?

[Clydesmom]

The problem you have is that some collection agencies, junk debt buyers, and original creditors have a strict policy of NOT doing pay for delete. Not only is the amount of the debt important but how old is it and what is the SOL for lawsuit?

 

PFD is all about leverage. The older the debt, the less time it has until it drops off a credit report, and the more times it has changed hands the more leverage you have.

 

If the CA/JDB or OC can still sue for the debt because the SOL has not run out then you have little leverage to settle for less.

 

If the debt can stay on your report more than a year or worse tow or more years then you have low leverage.

 

If it is still with the OC or the first CA then you have lower leverage.

 

If the debt can drop off in less than 14 months (subjective but fairly accurate), has been sold multiple times, and has an expired SOL for lawsuit then you have a lot of leverage.

 

If the CA/JDB has an absolute policy of never doing a PFD then it matters not what leverage you have they will not do it. You cannot force them to.

[NEWSTARTIN2013]

For starters slow down and take a deep breath. Listen to the OP just because you have the money to pay a debt, how do you know its yours? If the amount is correct? Did the OC give or sell the CA this debt to collect? Why you are so quick to throw money at those clowns you honestly need to read the thread on writting an affective DV Letter.

[LordAthens]

As the others have said, don't go just offering money, especially with those PFD letters that you've come up with. Right off the bat, none of them state that you are not claiming this debt as your own. Immediately, that could restart the clock on all of your debts.

 

You need to handle them on a case by case basis. Giving us dates on all of the accounts would start letting us help you, not just a general "some of them date back to 2008". Dates are VERY important when dealing with debts, OC's and CA's. For example, if your DoFD was only back in early 2012, that is still within every states statue of limitations. They will have until 2016, at a minimum, to sue you for full costs. Consider it highly unlikely to get a discounted PFD for any debt that is still within SOL. Look at it from there point of view, why would they settle when they could just sue you and eventually wage garnish you?

 

The only ones you have any real leverage with are debts that are outside of your states SOL. The older they are, the better. Even accounts going back to 2008 aren't that old, especially if the DoFD was well after that.

 

LVNV and Midland have a policy of never accepting PFD's, so you may be out of luck on those to begin with.

 

The first thing you need to do is start sending Debt Validation letters. Let THEM do the initial legwork. Give THEM the opportunity to foul up where you may be able to pull the FCRA and FDCPA into play. The only thing it's going to cost you is ~$40 in CMMRRR mail.

 

As an example, I have been working on my fiance's credit. She had 7 medical collections on her report. 4 of them I didn't bothering sending DV's on because the debts aren't that old and they are using in-house collections (semi-common with hospitals), so I know they will be able to validate the debts. However, just yesterday I got a letter back from Tek-Collect. They couldn't validate the debt. The letter stated "We spoke with our client and have been instructed to close the file. Accordingly, the credit reporting agencies have been contacted and directed to remove and derogatory comment involving this matter".

 

It was a $300 collection. It cost me $6.xx to send the DV letter. Their letter was BS, their client went out of business 2 years ago and as such, they couldn't validate it. But it doesn't matter. That is 1 out of 7 that is off of her report at a very, very low cost.

[jerelj]

Just got my mail and the disputes I submitted most of the above collections didnt respond and therefore removed from my credit. So I am at right about $5,000 worth of collections and I typed up my debt validation letters. So, I will start from there.

Thanks

[cinnamngrl]

Just got my mail and the disputes I submitted most of the above collections didnt respond and therefore removed from my credit. So I am at right about $5,000 worth of collections and I typed up my debt validation letters. So, I will start from there.

Thanks

So if the debts removed from your report are within SOL, they may come back. This could be a good time to renegotiate the debt. it is easier to keep things off your report than remove it.

[LordAthens]

Just got my mail and the disputes I submitted most of the above collections didnt respond and therefore removed from my credit. So I am at right about $5,000 worth of collections and I typed up my debt validation letters. So, I will start from there.

Thanks

 

Huh? I'm completely confused. You didn't mention anything before about having sent DV's? Just because you sent a DV and they didn't respond, doesn't mean it is automatically removed from your credit reports. Have you read any of what was suggested by the previous posters?

[NEWSTARTIN2013]

@LA Im confused also and now I need a drink!

[beli]

 

Just got my mail and the disputes I submitted most of the above collections didnt respond and therefore removed from my credit. So I am at right about $5,000 worth of collections and I typed up my debt validation letters. So, I will start from there.

Thanks

 

Huh? I'm completely confused. You didn't mention anything before about having sent DV's? Just because you sent a DV and they didn't respond, doesn't mean it is automatically removed from your credit reports. Have you read any of what was suggested by the previous posters?

Add me to the confused list.. no where did the OP state they sent Dv letters already.

 

OP Unless the response letter strictly states they are going to delete the account, don't assume it's going to be deleted.

 

The Ca's don't have to respond to debt validation letters if it was sent w/in the 30 day window they do have to stop trying to collect until they do. Again, this is if it's within the 30day window when the dunning letter was sent. Since most of these are from 2008, chances are the CA's won't repsond. Heck you might even hear from them a year later with their "validation".

 

2nd time asking have you even gotten hard copies of your credit report? Midland/LVNV are known for not reporting TL's correctly.

[cinnamngrl]

2) Write a pay for delete letter with my settlement offer and a cashiers check enclosed with the amount I wish to settle with a statement on the check and the letter stating "IF YOU ACCEPT SETTLEMENT OFFER AND CASH CHECK YOU AGREE TO REMOVE ITEM FROM CREDIT REPORT IMMEDIATELY AND NO LONGER REPORT ON THIS ACCOUNT ON MY CREDIT REPORT. BY CHASHING THIS CHECK YOU ALSO AGREE NOT TO REAFFIRM THIS DEBT AND TRY TO COLLECT AMOUNT OTHER THAN AMOUNT I OFFERED TO SETTLE. "

This is called restrictive endorsement and it is not recomended. several states have specific laws that allow a collector to cash the check and ignore your pfd. even if you are not one of those states, you would be unlikely to enforce the agreement.

[cinnamngrl]

Just got my mail and the disputes I submitted most of the above collections didnt respond and therefore removed from my credit. So I am at right about $5,000 worth of collections and I typed up my debt validation letters. So, I will start from there.

Thanks

Ok, "therefore?"

 

are you talking about disputes submitted to the CRA? Did you get deletion notices from the CRA?