5 things a debt collector will tell you when you ask for a “pay for delete” agreement

“Pay for Delete” refers to a collection company offering to delete a collection account from someone’s credit report if you pay them in full. There is no formal “pay for delete” plan with the repositories or collection companies.

The Repositories disapprove of removing correct negative information simply because it has been paid. They will give a collection company that continuously makes this request warnings and could eventually restrict the collection company’s ability to report to that repository. Some repositories agreements clearly state “Paid in full collection accounts must not be deleted” & “Do not delete paid in full collection accounts.”

Recently collection companies have been instructing debtors to pay the collection and then file a dispute with the repositories and the collection company will tell you that they will not respond to the dispute and it will be removed per the Fair Credit Reporting Act. The problem with that method is you have nothing to fall back on when someone unfamiliar with the arrangement re-verifies the debt.

So there is a lot of gray area when trying to use the “Pay for Delete” strategy. Although it should always be your goal when dealing with collection accounts. Whatever the conclusion get your agreement in writing, on company letterhead, signed with ink. Then you will no longer need someone at the collection company to fix your report

Transcript

HI everybody Dave Sullivan here for the credit guy on TV. This time we are going to talk about the 10 things collection companies will tell you when you’re trying to negotiate a pay for delete situation on a collection. You see the collection companies obviously report the information to the repositories through an e-Oscar electric type system.

When collection companies attempt to remove it from your file (if they’ve made a mistake) they have to then contact the rep at the repository. The repositories set the rules, so it is a bit of a pain for them to constantly remove information that was reported in error.

Many times collection companies tell you things that may not be correct in order to get you to stop negotiating. The goal is to settlement the debt so they will tell you “their company doesn’t do that”. Their company does not do that is really not a valid kind of response because they can always correct something if it is an error. When they tell you that it just means one of two things;

1. That they either done it too many times and the repositories give him a hard time about it.

2. You’re talking to someone who doesn’t have the authority to give you that type of offer. So then you want to move up one level in the chain of command.

It also depends on the amount of the collection that you are negotiating. If you’re negotiating a twenty dollar collection, it will be very difficult to get that removed. If you’re negotiating a $2000 or $3000 dollar collection they are obviously going to want to work with you.

Many times the collection company will tell you it’s illegal for them to remove it. Actually in the Fair Credit Reporting Act there’s no requirement that they reported data. So obviously there is no law that tells them that they can remove it especially if it is an error. The fact that they say that it’s illegal for them to remove it is just another way to make you feel bad when you’re asking for this. So that you won’t ask for the removal obviously you don’t want to ask for something that is illegal. When they say that as it is a tactic to make you go away or move away from that type of resolution.

The third thing is going to be the repository will not allow them to do that. Again, the repository is very open to correcting errors so if they report something in error, they can very easily remove it. Begin with that goal.

The fifth thing is we will not provide anything in writing. okay so it makes no sense to go through the negotiation for them to tell you they will remove it and then for you not to get anything in writing. You have to get something on company letterhead, which says it was reported error signed by someone at their office and the account number once you have that. That’s your golden ticket, you don’t need them anymore. You can go to the repositories and get this removed. You want the next five things that collection companies tell you just click on this video right here. So you with a little bit me we’re going to change the credit industry thank you

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Comments

One response to “5 things a debt collector will tell you when you ask for a “pay for delete” agreement”

  1. JOn H says:

    Great idea: Get it in the agreement that the CA is *not* permitted to respond to requests to the CRA from you (civil law). This “gag” order will work.

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