HELP: Getting collection acct deleted as part of settlement?

[reup]

Hi everyone,

I've seen the template letters here for negotiating a settlement and

having the derogatory information removed from your credit report.

I was wondering, is the best strategy to send them this letter and

demand that they sign and return a copy of it to you or to have them

initiate and send you the letter which would include terms stating that they will delete upon receipt of payment? I've read about cases where the

collection agency will, instead of returning a signed copy of the letter you sent, will send you a letter saying they will report the account as "settled P&L" or some other status which is still negagtive.

I'm thinking it might be easier to just have them send me a letter which include my terms (deletion) so I don't have to waste my time mailing them back and forth with new letters, etc...

Does anyone have any experience with this?

Thanks for the help!!!!!

[willingtocope]

You might do a search on "pay for delete" or PFD and see the letters that others have sent.

I personally have never tried, but if I were to do a PFD I would send the CA a cashier's check CMRRR along with a letter stating my terms for payment (...delete for all CRs, not resell balance, settles account for all time...) and stating that by cashing the attached check they agreed to all terms.

This isn't exactly "restrictive endorsement" of the check, but if they were to cash the check and then break the agreement, I'd certainly sue.

You really...really...really...can't trust a CA. Their whole business depends on their ability to lie and bully people into things they don't need to do. I'm honestly not sure my approach would work (...I do know one person tried this and the CA returned the check uncashed...) but IMHO if they do cash it, you've got them...and if they don't cash it, you have evidence that you tried.

[Recovering Attorney]

I have had luck with OCs. There is no incentive for a CA to do anything for you.

[reup]

Thanks!!! In my situation the Collection Agency, Not the OC, is the one who reported the negative info to the credit beaurau. Given that, should I try to pursue the Deletion with the collection agency or does would the OC be able to have that info removed?

Thanks!

[Recovering Attorney]

Try with the OC. Go as far up the food chain as you need to, flash them the cash, appeal to their vanity, and ask for their good will. Remind them that a paid collection does nothing for your credit rating, that the CA can delete it if the OC tells them to. Make a token donation in the executive's name to a local charity. That gets em.

[willingtocope]

Is the OC showing on your reports at all? If not, then this debt might be uncollectable (beyond the SOL) If the OC still owns the account, I'd suggest you try to deal with them.

[reup]

On my report, the collection agency is the only Adverse account listed.

It lists the OC under the CAs info. This is how it appears:

Collection Agency #12345

Loan type: Collection Agency/ Attorney

Remarks: Placed for collection

Date Placed for collection: 5/05

Estimated Date of removal: 11/2011

Balance: $60 Pay Status: >Collection Acct<

Original Amount: $60 Account Type: Open Account

Original Creditor: 11 Sprint PCS Responsibility: Individual Acct

Past Due: >$60<

Does that mean that the OC no longer owns the account?

[willingtocope]

I'm not absolutely sure, but it does appear that its been sold. I guess I'd suggest you have two choices..1.) following Recovering's advice and contacting the OC to see what can be done...or 2). disputing this with the CRAs saying that you never had an account with these people and the OC they're reffering to is not reporting an account so they should be deleted.

Even if the CA has (or can) validate this, you really have no incentive to pay them...its unlikely that they'll sue for $60...and as far as your CRs are concerned, a paid collection is almost as bad as an unpaid one. So, if the OC won't help, you're back to the PFD letter approach.

[reup]

Willing, thank you so much for your advice. I shoule have mentioned earlier that I did dispute this but I went about it the wrong way.

What really happened is that I paid off my sprint account in full when my

contract expired and I did not renew. Sprint somehow figured that I still owed them money, but since I didnt I fought it and refused to pay.

When I disputed it with the Credit Bereau, instead of saying that the account wasn't mine, I just explained that the account was paid in full

long before they sent it to collections.

Just to make sure I understand fully... since (as you have pointed out)

a Paid Collection account is almost as bad as an unpaid one, the strategy then should be to try have the entire account deleted from my credit report, which is where the PFD comes in, correct?

Sorry if that is a dumb question or if Im being too redundant. Im new at this and want to make sure I dont make the situation any worse.

Thanks for your help!!!!

[willingtocope]

Exactly. The only reason to pay a CA (or in this case what appears to be a junk debt buyer (JDB)) is to get them off your credit report...and, you must get all agreement in writing.

In this case, I guess I'd still suggest disputing this with the CRAs. Write them a CMRRR letter stating that you never had an account with these people and the OC they're referring to was paid in full and is not reporting...therefore the tradeline is bogus.

[reup]

Well, I called sprint and spoke with somone in their collections dept.

They guy I spoke to said that if I pay them it will reverse the transaction

on my credit report. When I inquired about what that means, he said that it will show up as paid. When I asked if they would delete the account

the guy told me he didnt understand what I was talking about. He said

that it happens automatically and he cant do anything else. The call was mysteriously disconnected as we began to discuss it further.

Then I called the collection agency (Diversified). They previously sent me a letter offering to settle for 70%. The reiterated on that on the phone, and said they couldn't do any better. I agreed to pay it if they would delete and they rejected that. Telling me they wouldnt because the account is "so old". Mind you, the collection agency has only had this account since May 05. The OC alleges that the account was past due since Jan 05. After a short period of haggling I explained that I wasn't going to pay if they won't delete, especially since I don't owe it. Then came the "collections will continue" threats and all that. So I said thanks for your time and disconnected.

Now I guess I'll try disputing again.

[reup]

1 more question on this... If I pay the OC the full balance can the CA continue to report the account? Would they have anything that they could verify?

Thanks

[willingtocope]

At this point, I don't think I'd trust the OC to do anything either. If the OC doesn't have a separate TL on your reports, then they have almost certainly sold the account...which means they have no real leverage over the CA, who would probably be pissed if they took the money. Its the CA's TL you need deleted, and I don't think the OC will do that.

So...back to what I suggested before. Start with a DV to the CA, and if they can't validate with 90 days, hit them with a "be gone, or I'll sue" letter.

[onlybrad]

Don't make a deal with the devil. Because he probably won't keep his word!

Remember you are considered a dead beat to them. Approach with caution. Plus they will report the item for another 7years from the day you pay the acct.

The current system doesn't not encourage people to pay off their debts.

Thanks,

Brad