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daherc

collector states that paying in full will "delete the trade line" is that the same as a letter of deletion?

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i have a very old utility collection that is on my credit report (found out while applying for a mortgage, not fun) in the amount of $295. i have zero problems paying it but the collections agent said they do not provide a letter of deletion and that i would merely receive a receipt for my payment. keep in mind the collection agency only works for the utility company. after speaking with a supervisor, she explained that paying in full will "delete the trade line" and she said yes it will remove the negative item from the credit report. is this true? 

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Hard to tell.  In general, if its not in writing...it didn't happen.

You could hold out for a "pay for delete" letter, but, as long as their tradeline is marked "paid", it won't hurt your credit scores.

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13 hours ago, daherc said:

i have a very old utility collection that is on my credit report (found out while applying for a mortgage, not fun) in the amount of $295. i have zero problems paying it but the collections agent said they do not provide a letter of deletion and that i would merely receive a receipt for my payment. keep in mind the collection agency only works for the utility company. after speaking with a supervisor, she explained that paying in full will "delete the trade line" and she said yes it will remove the negative item from the credit report. is this true? 

It is my experience that some dunce working for a collection agency #1) has no clue how credit reports or the law actually works and #2) will lie and say anything to get you to pay so they can take their cut.

If this were me, before I paid anything, I would first dispute the TL with the CRAs. If verified, I will send an MOV letter to the CRAs.  I would then pull a new copy of my reports and see if it isn't gone.

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i googled around and found this collector to actually be quite pleasant and a significant amount of people stating that once they paid in full it completely dropped off their credit report a couple weeks later. i am going to wait and see what sky blue says and go from there. time is of the essence but there is a balance of also doing the best for the long haul. i would hate to pay it and it stays on my report as paid in full which is not the best outcome.

*edit*

i emailed allianceonce directly this morning and received a call from someone in their administrative department. she was a lot more helpful explaining the process. basically upon full payment they issue a request for the trade line to be deleted from all 3 credit bureaus and that i will receive a confirmation number and an email stating all of this along with the receipt. she said they have no control over how long it will take the bureaus to reflect the change but she said i could call her back at anytime after if there is an issue. i have her direct number now.

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We all hope to find the pot o' gold at the end of the credit repair rainbow.  If this agency actually fulfills this promise, hooray!  A a few things to be aware of... As stated above, collectors are notorious for lying to get paid.  Data is furnished electronically and most have no knowledge nor access to change this.  The only thing a collection agency is required to do is to update the balance.  The update is what causes your credit score to lower by making the account appear to be more recent to the scoring software.

Be aware that Data Furnishers have contractual agreements with the CRAs prohibiting removal of tradelines in exchange for payment.  This is why most will tell you they can't do that.  I don't want you to become as cynical as the rest of us.  But we'd rather warn you ahead of time than advise you on how to deal retroactively.

Since it seems there's reason to believe this company might actually follow through, I'd recommend having them sign (notarized signature of a company representative) a Nondisclosure Agreement in exchange for payment.  That way, if they don't do what they've said they would, at least you have valid grounds for a lawsuit.  I wish you luck with this.

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