Sign in to follow this  
thehorseandtherider

PFD on Small Collection Amounts

Recommended Posts

Hey guys,

 

I need a little advice on how to best tackle this.  I recently got my credit reports and noticed 3 accounts currently in collections:

 

1.  $65 to Credit Management LP (OC Charter Communications) Placed for Collection 8/2013

 

2.  $118 to to Transworld Systems (OC Old utility bill w/city) Placed for Collection 11/2013

 

3.  $1108 to Midland Funding (OC Citibank) Placed for Collection 8/2010 (Says on my CR that it's scheduled to continue on record until August 2015, so I'm thinking about just leaving this one as is.)

 

Basically, I'm thinking about doing a PFD on the first couple and offering 50% of the amount owed since they're such small amounts I'm hoping that the CA's will just accept.  

 

I'm also afraid that this will rally up any other old debts I may have and they'll pursue me, am I right to think that or am I safe just sending off a couple of PFD's and getting those (hopefully) off of my credit report.

 

Any advice would be greatly appreciated!  Trying to get my credit report (slowly but surely) back into shape.

Share this post


Link to post
Share on other sites

1.  $65 to Credit Management LP (OC Charter Communications) Placed for Collection 8/2013


 


CCM WILL do PFD  I know because I have done it with them.  60-70% is typically what will get it done.  I sent a letter with 2 copies of the signed settlement offer indicating if they returned one with a signature from an authorized representative I would pay within 14 days via money order and they would delete within 14 days of payment.  They accepted and did delete after I paid.


 


2.  $118 to to Transworld Systems (OC Old utility bill w/city) Placed for Collection 11/2013


 


This one too is likely ripe for PFD but given it is a utility probably will want the full amount.  It isn't a lot of money just make it go away.


 


3.  $1108 to Midland Funding (OC Citibank) Placed for Collection 8/2010 (Says on my CR that it's scheduled to continue on record until August 2015, so I'm thinking about just leaving this one as is.)


 


A few months to deletion:  I would not pay Midland one red cent  Let this drop on its own.


Share this post


Link to post
Share on other sites

What would a settlement offer typically look like? Every thing I've read seems to request a letter back on their own letterhead.

I'll definitely do a PFD for the $65 and offer 60% on that one. As far as the $118 I should just offer up the full amount and PFD right?

Midland can suck it.

Share this post


Link to post
Share on other sites

After reading more and more on here, would it be wise to DV before I started the PFD process?  Or just skip directly to the PFD?  I've seen that some folks have sent DV letters and the collections never verified and they came off of their credit reports.  I know mine are only within the last couple of years so I'm not sure if I would be so lucky.

 

I've never received anything from either Credit Management or Transworld.

Share this post


Link to post
Share on other sites

What would a settlement offer typically look like? Every thing I've read seems to request a letter back on their own letterhead.

I'll definitely do a PFD for the $65 and offer 60% on that one. As far as the $118 I should just offer up the full amount and PFD right?

Midland can suck it.

 

Utility companies generally don't discount but you have nothing to lose by asking.  Credit Management will verify so a DV will simply delay the process.

 

After reading more and more on here, would it be wise to DV before I started the PFD process?  Or just skip directly to the PFD?  I've seen that some folks have sent DV letters and the collections never verified and they came off of their credit reports.  I know mine are only within the last couple of years so I'm not sure if I would be so lucky.

 

I've never received anything from either Credit Management or Transworld.

 

You can DV but that will slow down the deletion process as I said CM will verify so will Midland.  

 

As for getting a letter on their letterhead:  as long as you have your signed settlement agreement letterhead is not needed.  I did my own with CM and two other CAs and had no issues what so ever.  Keep the signed copies FOREVER.

Share this post


Link to post
Share on other sites

Thanks for the advice @Clydesmom.  Is there any particular format or template that you can lead me to for the settlement letters?  I'd like to throw those in there before I send them out today or tomorrow.  And do I need to provide my signature on them or anything at all?   

 

I won't be sending Midland anything, I'm going to just let that one fall off on it's own.

Share this post


Link to post
Share on other sites

Thanks for the advice @Clydesmom.  Is there any particular format or template that you can lead me to for the settlement letters?  I'd like to throw those in there before I send them out today or tomorrow.  And do I need to provide my signature on them or anything at all?   

 

I won't be sending Midland anything, I'm going to just let that one fall off on it's own.

 

I will PM you the ones I used

Share this post


Link to post
Share on other sites

I sent out my letters yesterday, crossing my fingers that I can clear these couple of items up since they're such small dollar amounts.  

 

As for any other derogatory accounts on my credit, trying to get rid of these couple of collection accounts won't grab the attention of the other higher dollar accounts, will it?  

Share this post


Link to post
Share on other sites

Update:  Credit Management agreed to accept full payment in order to remove the information from the credit bureaus.  Once I sent payment they sent back a letter confirming the payment and that they would indeed request deletion from the bureaus.  Just a week later, that account is gone!  Woo!  So PFD DOES in fact, work.  

 

The account for Transworld Systems is another story.  They might as well have given me the finger based on the letter they sent back.  They will not PFD.  I've been reading around though and it seems like if people request validation of debt that they won't bother validating and the accounts disappear.  Does anybody have any experience validating after requesting PFD or is it just a lost cause?  What would the best plan of action be?  Paying it off would obviously look better on my credit, while not necessarily helping my score, I really don't want that petty $118 collection on my CR anymore, ahh!  Halp!

Share this post


Link to post
Share on other sites

I would not have agreed to pay a single penny until I first attempted to dispute the TLs with the CRAs first.  Only IF after a dispute, followed by a MOV letter if needed would I agree to pay these old accounts.

 

I would bet you at least 2, if not all 3 of those TLs would just be removed with a dispute and/or MOV letter.

Share this post


Link to post
Share on other sites

The Midland Funding TL is due to fall off this summer so I'm not too worried about that one.  The TL for Credit Management has been taken care of so now it's just the Transworld Systems TL that I need to figure out what to do with.  Is it too late to dispute this?  Should I see if the OC still owns the debt?  

Share this post


Link to post
Share on other sites

I would dispute both the Transworld and the Midland TLs with the CRAs.  With the Midland account, I would say "I dispute this account because is too old and beyond the reporting period".  With the other one, I would dispute as either not mine or incorrect balance.

 

99% chance Midland gets removed right away. You wouldn't have to wait a few months on them.

 

If the other one comes back as verified, I would send an MOV letter.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this