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How often do 'Pay for Delete' offers work?


kexii
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There are a lot of post around the web offering suggestions and situations for making offers to OCs for a settlement for reporting deletions. How often do people succeed? And how?

I've done a little groundwork myself already and just started working with Lexington Law. They've gotten a few things removed already (in less than a month) that have supposedly been 'validated' during other dispute attempts. However, I have a few accounts that I'm fairly confident WON'T go away so easily tho and have been researching what I should do for the next step since Lex only uses the dispute/validate approach over and over.

Once I get sufficient paperwork from the OC's, I was planning to make a 'pay for deletion' request but would like to get a better idea of what approaches work best?

I've been having a really difficult time finding a professional service that assists with this part of the process.

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I would also love to hear some other responses on this.

I have tried several times, for both me and dh, and have never had any luck.

All attempts were with medical collections that are 4-6 years old. I thought I might have luck due to the fact that it has been so long.

I know there are laws they have to follow when it comes to reporting, and many collectors are now not agreeing to PFD.

Bottom line, is I might as well just wait for these accounts to fall off on their own since the 7 year mark is coming up. I was working on these in order to qualify for a mortgage, but our broker just told us medical collections will not be held against us.

Anyone else have any PFD luck? Which companies out there are agreeing to them?

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  • 1 month later...

I have had success with RJM Acquisitions. The debt was about 5 years old. They were willing remove the TL for 25% of the original debt. CAs have been easier for me to settle with than OCs.

In general, I would say that the older the debt, the less you should offer. Always start much lower than you're willing to pay. Also, make sure that they agree to not issue you a 1099, so you won't have to pay taxes.

Don't seem desperate to settle. Make an offer. If it's acceptable take it. If not, then wait before making another offer. Remember, you have the power in this negotiation. Especially, if it's particularly old, The older the debt, the less it's affecting your score, so there's no need to be in a huge hurry to settle.

Of course, you should get any agreement in writing before you send a penny.

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I have had success with RJM Acquisitions. The debt was about 5 years old. They were willing remove the TL for 25% of the original debt.

Yes, I'm sure they jumped all over this and could not agree to the offer soon enough. While I would never settle with a junk debt buyer, I can't imagine any junk debt buyer not taking anybody up on this type of offer on a five year old debt. There is still huge profit for them with a 25% settlement.

The problem is, like you correctly posted, the original creditors are a whole different story. Honestly, it's pretty dang tough with original creditors. If the balance is high enough and you offer to pay 100% sometimes they agree.

In all honesty a pay for delete violates the credit repair orginization act (CROA). Won't go into all that on this post because it's been debated to death and you can research more if your interested.

The bottom line is, as you can see, that getting an OC on board with a PFD is just pretty dang hard. The reason junk debt buyers go for it is they could care less about the laws and even a 25% settlement makes them about about a 1000-1300 percent profit. They are not turning that down no matter what. Plus even I would not sue over a CROA violation if I brought up the offer to pay for delete. Well maybe I would not go that far but I don't think I would. So that risk is really minimal.

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Also, make sure that they agree to not issue you a 1099, so you won't have to pay taxes.
Just because you don't receive a COPY of the 1099c, doesn't mean either the OC or JDB didn't send one to the IRS. Even if they didn't, you still owe taxes on the "forgiven" debt...and if you're ever audited by the IRS, they'll find it.
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  • 2 weeks later...

with the medical debt, I'd make the offer to the OC and ask them to show their good will by telling the CA or whoever reported it for them to delete it. I've had success with that in the past.

In my experience , banks won't do a pay for delete and most jdbs won't. If you are dealing with a CA or lawyer who hasn't put the item on your cr, they won't be able to bind their client to any such offer, so it isn't worth it.

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