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Settling for Account Deletion


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Up until May of this year, all 3 of my credit scores were in the 700's. Started falling behind on my credit card payments, and things had gone way down hill (All 3 currently in the mid 500's) since then. I have come into some money to be able to settle my 8 accounts (5 have been closed by creditor and 3 are still open). I have been in contact with a 'debt negotiator' who has looked over my credit reports and come up with the following strategy:

'Preserve' the 3 accounts still open by paying them up, and later challenging the derogatory items reported.

'Settle and delete' 5 accounts that have already been closed. 'Settle' for the least amount they will agree too (He charges a flat hourly fee, not a % of settlement). Also, as part of the settlement agreement, he plans to get the creditors to agree to totally delete the account from my credit reports. Like it never existed. I have never heard this was even an option. This is where I have questions.

1.Does this actually work, and if so, is it a realistic outcome?

2.Is total deletion a good thing? I know that not having an account with negative info is good, but would it be easier/better to settle and challenge everything later? Most of my accounts had perfect payments and were 3-5 years old.

3.My oldest account (Washington Mutual) had perfect payments since I opened in 2000. On this account, because of the length of great history, would it be better to settle and challenge the late pays/status later?

Of course, my intention is to rebuild my credit. Any advise/input reflecting this, would be greatly appreciated. As a side not, I have 3 auto loans that are 2-3 years old. I have managed to maintain perfect payments on these. I mention this because I know maintaining these will help my scores. However, I am not sure how/if at all I should let this effect how I proceed.

Thank you,


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Hello and Welcome

I have heard of pay for delete which is wonderful. I hope your attorney has a fool proof means of making this happen because most CA's and many OC's refuse to do it even if you pay the account in full.

I haven't figured out why but they want their pound of flesh.

Don't forget the income tax ramifications with the settlements for less than full amount when you are doing your figuring.

Anyway those are my thoughts and Good Luck to you.

BTW the car loans should be benificial to you and establishing a CC of some type will help even a secured one.



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