Ready for settlement but wanted pay to delete, what's my options?

[StickyRice789]

Hello All,

 

Make long story short, I got hit by covid-19 in 2020 and had been hospitalized for 2 months nearly died.  But I guess its not my time yet .  When I recovered, my health is not the same anymore and I lost my job.  So, I had been defaulting some of my CCs since.  All the CCs are now owned by CA and has been reporting to all 3 of the CB as collection.  I admit I do owe the debts but I do not want to pay in full, i like to pay for delete.  I had been saved up and have "some" cash in the saving to make some settlement so I can get rid of the collection and increase my score.  I am ready to make settlement, just not 100%

 

I understand that I will have the CA put everything on writing ( email or letter), requesting them to delete the collection out from the CB within 30days upon received my settlement payment (will send them money order, makes copy, and send it certified mail with tracking)

 

The reason questions are, how many % that would be "reasonable" to settle for delete?  I understand that's all depending on each CA, but what's a good %???  I read that people had done from 10-35%?  

 

Here is what I do know from my CR.

 

score: 583

MCM: 811$                             Willing to settle 50% max

MCM: 1,184$                          Willing to settle 20%

Absolute Reso:  5,333$          Willing to settle 20%

Jefferson Cap: 927$               Willing to settle 50% max

Jefferson Cap: 1,208$            Willing to settle 20%

Captial One: 529$                 Willing to settle 100%

 

Is the number of % id listed above is "reasonable"? should i go lower or higher?  You also may think why didnt I pay off the lower amount long time ago?  I was just not financial ready yet, but today I am and I'll willing to settle but I wanted them to delete out from my credit report.

 

Thoughts, comments, suggestions, advise, are very much appreciated and welcome.

 

Thank you in advance.

 

 

 

 

[MarvBear]

Settling for less than owed is still a viable strategy, but getting a credit card provider to remove the tradeline entirely from your credit report is highly unlikely under current practices and regulations.
💳 Debt Settlement: What's Likely
•     Major issuers do settle: If your account is delinquent or charged off, many credit card companies (or their collection agencies) will negotiate a lump-sum settlement for less than the full balance.
•     Typical discounts: Settlements often range from 30% to 60% of the original debt, depending on age, status, and your hardship narrative.
•     Reporting outcome: After settlement, the tradeline usually updates to “Settled” or “Paid for less than full balance”, which is less damaging than “Charge-off”, but still a negative mark.
🧾 Tradeline Removal: Rare and Risky
•     Credit bureaus discourage deletion: Under the Fair Credit Reporting Act (FCRA), accurate negative information can remain for up to 7 years. Creditors are not obligated—and often contractually prohibited—from removing valid tradelines.
•     Pay-for-delete is controversial: While some third-party collectors may agree to delete a tradeline in exchange for payment, original creditors almost never do, and bureaus frown on this practice.
•     Legal leverage is limited: Unless the tradeline contains factual errors or violates reporting rules (e.g. duplicate entries, wrong dates), you can't compel removal.

 

[SeekerOfWisdom]

MCM has a policy, which they publish on their website, of deleting trade lines after settlement.  I know Portfolio also does, so it's possible to get PFD without paying full sticker price for some debt buyers.  Jeff Cap might do it, but I've never asked them.  Cap One probably won’t.

 

No debt collector that I'm aware of can delete trade lines from an original creditor, only their own.

[overtun333]

I know I'm late to the party since you posted this back in September, but man, those hospital bills and credit card defaults are a heavy weight to carry. Glad you're still with us though!

Regarding the settlement %, 20-30% is a solid starting point for most of those big CAs. Just a heads up, Capital One is notorious for being stubborn. If they don't budge on that "pay to delete" part, you might hit a wall. When I was drowning in similar business and personal debt messes, I ended up using Delancey Street.

What I liked about them is that they’re actually attorney-owned, so they have a bit more leverage when creditors try to play hardball with the legal language of the deletion. They helped me clean up a few accounts that I couldn't settle on my own for less than 50%. Hope you got this sorted out already, but if not, they're worth a look!

[overtun333]

On 2/23/2026 at 12:09 PM, overtun333 said:

I know I'm late to the party since you posted this back in September, but man, those hospital bills and credit card defaults are a heavy weight to carry. Glad you're still with us though!

Regarding the settlement %, 20-30% is a solid starting point for most of those big CAs. Just a heads up, Capital One is notorious for being stubborn. If they don't budge on that "pay to delete" part, you might hit a wall. When I was drowning in similar business and personal debt messes, I ended up using Delancey Street.

What I liked about them is that they’re actually attorney-owned, so they have a bit more leverage when creditors try to play hardball with the legal language of the deletion. They helped me clean up a few accounts that I couldn't settle on my own for less than 50%. Hope you got this sorted out already, but if not, they're worth a look!