Going to try a PFD to OC..looking for advice.

[wdsman1]

Here is my letter. Looking for advice or anything I should add. I really cannot afford to offer any more. I removed the address and the account number from the top of my letter for this post.

You are reporting to the credit bureaus that I owe you a balance of $4868. I am offering to make a payment on the above account for full deletion of this account to all credit reporting bureaus. I have researched this account with the information you have sent me regarding the above account. This account is currently out of the statute of limitations.

I am offering to pay 10 % of the alleged balance owed for full deletion of this account from all credit reporting bureaus. This is not an admission to money you allegedly say I owe, but an offer to settle this matter without wasting anyones time. This payment will be a major financial burdon for me but I value my credit and our time.

By accepting payment of $486.80 this payment you agree to accept this as payment in full and DELETE this account from all credit reporting agencies.

By accepting payment you agree to the following terms which must be stated in a signed return letter to myself, Joshua Hartman.

1. This payment will prevent Chase from reporting this account to all credit reporting
bureaus.

2. This account will be DELETED from all credit reporting bureaus within 10 days of receiving
the agreed upon payment of $486.80.

3. Chase is prohibited from selling, assigning, or otherwise transferring this account in
any way to a third party.

If these terms are agreeable to you please confirm these terms and send a signed copy to me at the above address. I will promptly send the agreed upon payment as soon as I receive confirmation of our agreement.

Thank you for your time and I look forward to hearing from you.

[Suffering from a Tax Lien]

Good luck!

I just sent a letter to BofA today for PFD. This was on an account that has already been settled in collections, so I owe zero. I wrote them saying, "I owe you zero at this point, but I'll pay $200.00 if you'll delete this completely from my credit report."

I have no idea if it will work or not, but it's the last major bad thing on my credit, so if they take the offer that will be great for me. If not, well, it will drop off my report in a year anyway.

[Lian]

A PFD offer is essentially a form of good-will letter, asking them to do something they are not required to do. Your PFD letter asks for three concessions. In addition to asking for CR deletion, you are asking them to accept a very low percentage of the debt. Then, the additional requirement that they agree not to transfer the debt to any other party. Three conditions, all expected to flow from their good-will.

Transfer or sale of the debt has nothing whatsoever to do with credit reporting or CR deletion. That is their internal business decision. You are asking them to take a huge loss on the debt, and then not attempt any recovery of it by sale to another party. I highly doubt that term will be accepted.

Is the debt still within SOL? If so, they still have the ability to pursue collection through the courts, and seek the full amount of the debt.

[Suffering from a Tax Lien]

In my case, the debt is already settled with the CA. It's done, they cannot collect one penny because I have a settlement. If they accept my offer, they will get "free" money from me. If they do not, they get nothing.

[wdsman1]

It is out of SOL. Wouldnt it be better to take 10% than $0. If they do not accept should I expect some kind of response?

[Lian]

Taking legal action to collect the debt is not their only remaining stick to attempt collection of a larger amount. The very fact that you want CR deletion tells them they still have a stick to wield.
You might want to up your offer a bit.....

[wdsman1]

WHat if I just settled the debt without pfd? Would that make a difference? I dont have much more to offer? And what would a pfd do to an account that is 5 1/2 years from 1st delinquency?

[Lian]

Paying without a PFD results in no CR deletion, and thus no improvement in CR.
Is the first delinquency you are referring to the first one in the most recent chain of delinquencies? That is the date that determines CR deletion.

[wdsman1]

Originally Posted by Lian

Paying without a PFD results in no CR deletion, and thus no improvement in CR.
Is the first delinquency you are referring to the first one in the most recent chain of delinquencies? That is the date that determines CR deletion.

I haven't heard back from Chase with any kind of counteroffer.

My TU report says Date closed 03/2005, estimated date this item will be removed 6/2013...how is this possibe when other CR's report I was paying.

Equifax says date of 1st delinquency 7/06, date of 1st major delinquency 1st reported 2/07.

Experian says "date of status Jan 2007, this account is sceduled to continue on record until may 2013.

How much of a difference would this make if I worked out a PFD? Would my FICO jump significantly. My goal is to buy a house with my soon to be wife by the end of the year, hopefully sooner.

[Lian]

Score boost from deletion of a collection depends upon other items remaining in your CR. If it is your only major derog, then its deletion will most likely return you to a "clean" credit file categorization, and have a significant impact.

However, if other major derogs remain, you will still be in what is called a "dirty" credit file categorization, and impact of its removal will be much less.