"Pay for Delete" with Original Creditor?

[srjjames]

I'm in the process of trying to pay down my debt. I was reading up on Pay for Delete. Can this be done with the OC. Like I have 2 credit cards, that I'm paying on. I would like to offer them a settlement and just have them delete the whole account. I was wondering if this only worked with collections or could it be done with OC. Also can pay for delete be used for Student Loans and Judgments. I have 13 different student loans. I was wondering if I could just try to settle them 1 at a time...not sure if this would work. What about jugments. I have 1 5,000 judgment. I was wondering if I offered the attorney 25% could i try to do the pay for delete.

[IcanHelpU]

You do not want to pay an attorney to do what you could do for free... No collection company will do a pay for deletion no matter what they tell you. This you have to negotiate with the creditor before you make any payment arrangement. Remember that once you pay the creditor or collector they have no motivation to do anything for you. If they promise to pay for deletion make sure you get it in writing first. I do mean FIRST.... Until you pay the creditor the ball is in your court. You call the shots no matter what they tell you. Remember he who has the money has the power, you have the money and you have the power.

Hope this help... I know I am a debt collector.

[94B]

Originally Posted by srjjames

Also can pay for delete be used for Student Loans and Judgments. I have 13 different student loans. I was wondering if I could just try to settle them 1 at a time...not sure if this would work. What about jugments. I have 1 5,000 judgment. I was wondering if I offered the attorney 25% could i try to do the pay for delete.

Pay for delete won't work on student loans especially if the accounts are still with the OC because by law they are required to report. Also SL's have no SOL(legal).

Pay for delete won't work on judgments either because the actual creditor did not report such info. Instead a third party company that pretty much digs up public records(judgments, liens, bk's,etc) sells such info to the CRAs who in turn place item(s) under the public records section of your credit reports.

[emceeaye]

Hi,
I have a Barclay's credit card account that is 57 days late. It has been closed for 2 years. The debt still remains with the original creditor. They have made a settlement offer of 45% of a $9500 balance. A relative may be able to loan me the money for a settlement. I would take the settlement to save the money, but am concerned about it saying "settled for less than original amount" on the credit report for this account, because this will make it difficult for me to get a loan on a house in a few years or it will make the interest rate unaffordably high on it (if I even get the loan). I have already fulfilled the first two of a 3-installment settlement agreement amounting to $1000. The final payment will have to be paid by May 2 for the remainder of the 45% of the $9500 balance, which is $3500, to completely fulfill the agreement.

There are also five "30 days late" and one "60 days late" remarks on my credit report associated with the account. Is it possible for me to negotiate for a pay for delete of the entire account from the credit report?-Are my chances good for requesting this and if so, when is the best time to request it in terms of number of days past due?


Thank you in advance.

[Hal Jordan]

Originally Posted by IcanHelpU

No collection company will do a pay for deletion no matter what they tell you.

First the Attorney he's talking about offering 25% to isn't his own attorney but rather the attorney that's trying to collect from him. So I don't think he's considering hiring someone to negotiate for him.

And second the "No collection company willdo a pay for delete" is not true and it happens all the time. Especially with medical bills and credit cards. I've done it before so I know first hand I'm speaking correctly. Also, it's pretty hard to speak in absolutes.. the old never say never applies to everything, not just James Bond movies.

Chances are if it's a credit card debt that is with a collection agency it's been charged off and sold or transferred and a JDB now owns it. Which this group of people are more likely to do a PFD than anyone because they stand to profit more from you paying than anyone as they probably bought the debt for pennies on the dollar.

Student loans on the other hand are probably next to impossible to do PFD.. but I suppose you always have that "punchers chance" if you can get the right person with some kind of mega authority although I think I would have better odds of winning the 100 meter dash at the next olympics..

What you may be able to do is enter into a rehabilitation program with your student loans that can get them back in good standing within 2 years typically if you make all your payments on time and agree to direct debit withdrawal.

WRT to judgement.. I can't imagine them entering into a settlement with you considering they've already won a judgement against you. What's in it for them to take a settlement? They have already won in court. A judge signed off on an amount and they can use the courts to act as their collector now by garnishing your wages finding you in contempt for not paying etc.. You need to make your payments and make them on time with the people who prevailed against you in court.

[Hal Jordan]

Originally Posted by emceeaye

Hi,
I have a Barclay's credit card account that is 57 days late. It has been closed for 2 years. The debt still remains with the original creditor. They have made a settlement offer of 45% of a $9500 balance. A relative may be able to loan me the money for a settlement. I would take the settlement to save the money, but am concerned about it saying "settled for less than original amount" on the credit report for this account, because this will make it difficult for me to get a loan on a house in a few years or it will make the interest rate unaffordably high on it (if I even get the loan). I have already fulfilled the first two of a 3-installment settlement agreement amounting to $1000. The final payment will have to be paid by May 2 for the remainder of the 45% of the $9500 balance, which is $3500, to completely fulfill the agreement.

There are also five "30 days late" and one "60 days late" remarks on my credit report associated with the account. Is it possible for me to negotiate for a pay for delete of the entire account from the credit report?-Are my chances good for requesting this and if so, when is the best time to request it in terms of number of days past due?


Thank you in advance.

You should have probably started your own thread instead of hijacking this guy's..

IS it possible? I just said never say never so anything is possible. Will they go for it? Who knows.. not me. I'd say it's unlikely but it's something you can definitely try.

I will say this. You already made a big mistake and you lost your negotiating power with them by paying them already. Plus you've already entered into an agreement with them and now you're trying to pull out of that agreement 2/3rds of the way through it.. That will piss em off for sure.

You basically have an agreement with them for 3 payments to get a 45% settlement right? You have made two payments on that agreement and before you make the last payment you want to change the terms of the agreement right? Be aware that if you don't make your agreed upon last payment on time you void that agreement and all the money you have paid them up to this point will just go toward your balance and they will take that 45% offer off the table and may end up suing you for the full amount or charging off the balance and sending it to collections. You think a settled for less than amount looks bad on your credit report wait till you see a judgement against you or a charge off and a collection on there instead.

If it were me.. I wouldn't try to renegotiate a payment deal this late in the game and I wouldn't go past due on that agreement if you can find a way to pay it. 45% of $9500 is a pretty good deal and you may not ever get an offer that good again on it in the future. But, you can always ask and you can always try.. Just be aware of the potential consequences.

I wish you good luck.

[Lian]

There are no legal restrictions on either an OC or a debt collector accepting a PFD or GW offer.
The "restriction" is not one of law. Rather, it is a matter only of credit reporting guidelines set forth by the CRAs. In the uniform credit reporting manual, agreed to by any party reporting to the CRA, one provision states unequivocally that it is against their guidelines to report the deletion of accurately reported information based on payment of the debt. So, any GW or PFD deletion is technically a violation of their credit reporting agreement with the CRA.

However, this "guideline" is without teeth. When a creditor or debt collector reports a deletion, they don't have to provide any reasons. So the CRA does not challenge deletions. It is done all the time.

When asking for a GW or PFD deletion, it is rarely to the consumer's benefit to ask for entire account deletion. If the derogs are deleted, the account becomes a positive account, and at the least continues to count in average age of accounts.

PFDs for less than the full amount are asking the creditor/debt collector for two concessions. One CR deletion, and two, accepting less than the full debt. The lower the offered settlement amount, generally, the less likely will be their acceptance, provided the debt is still within SOL.