Pay and Delete

[andknapp]

I'm a little confused about what a pay and delete is. If I send them a letter saying that if they delete it from my report then I'll pay, are they deleting it entirely or what are they deleting?

Thanks!

[myscoresawful]

I think you're referring to a "pay for delete"

When you have a collection account on your credit report. If you simply pay the amount owed, they will put a note on the account "paid in full"...but the damage will remain there, your credit score will not even go up.

Now, if the entire collection account were to "disappear" from your credit report, as if it were never there, then your score (depending on how old the collection is) will most likely go up. The newer the collection, the higher the score should rise.

So, you make deals with the collection agencys....you tell them, I will pay this in full, if you completely wipe it off my credit report.

Both people benefit, they get paid and you get a better credit report.

They can sometimes be stubborn and flat out refuse to do it. Usually, the older the collection, the more likely they are to do it.

There are situations when this is not a good idea though. If the SOL (Statute of limitations) has not expired, then it gives the collection agency leverage. They can just reply to your request with "we're not taking it off, and if you don't pay this, we will sue you in court" (because now, you've brought their attention to it, you've waken a sleeping dog so to speak)

I'm sure there are a lot of people who have better information than this, but hopefully it will give you a general idea.

Incidentally, I have asked for a pay for delete on an old phone bill, still 2 years left on the SOL, but they sent me a promise on their letter head signed by the dept mgr that they will remove it upon receipt of my money order. I mailed it by priority mail on Monday, so should know something soon.