What is Pay for Deletion?
Pay for deletion is a negotiation strategy that you can use to remove negative information from your credit report. A pay for deletion letter is ideal for debts that cannot be denied by the credit bureau because you actually owe them.
Pay for Deletion Letter Template
Below is a pay for deletion letter template you can use to request that a creditor remove an account from your credit report in exchange for payment. Modify the highlighted items with your personal account information. This letter will also be useful if you apply it in a different format based on your situation. Download the letter template (compatible with Google Docs and Word), or rewrite the text below in your preferred program.
Text of Pay for Deletion Letter (Text Version)
Your Name
Your Address
Your City, State, Zip Code
Name of Collection Agency
Address of Collection Agency
City of Collection Agency, State, Zip Code, Zip Code of Collection Agency
Date
Subject: Account Number XXXX-XXXX-XXXX-XXXX
Dear Collections Manager:
This letter is in response to [your letter / your call / your credit report entry] regarding the above-mentioned debt dated [date]. I would like to save our time and efforts by settling this debt.
Please note that this is not an acknowledgment or acceptance of the debt, as I have not received any validation of the debt. This is also not a promise to pay nor an agreement to pay unless you provide a detailed response as outlined below.
I am aware that your company has the ability to report this debt to the credit bureaus as you see fit. Furthermore, you have the ability to change the listing as you are the information provider.
I am willing to pay [this debt in full / XXX dollars as a settlement for this debt] in exchange for your agreement to remove all information related to this debt from the credit reporting agencies within ten calendar days of the date. If you agree to these terms, I will send the approved payment in the amount of XXX dollars payable to [the collection agency] for the removal of all information related to this debt from my credit files.
If you accept this offer, you also agree not to discuss the offer with any third parties, except for the original creditor. If you agree to the offer, please prepare a letter on your company’s letterhead agreeing to the terms. This letter must be signed by an authorized agent of the debt collection agency. The letter will be treated as a contract and governed by state laws.
According to the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. If I do not receive your dated response within 15 days after the postal delivery, I will withdraw the offer and request complete validation of this debt.
Please send your agreement to the address listed above.
Sincerely,
Your Name
Tips for Sending Your Pay for Deletion Letter
Before you make a pay for deletion offer on a collection account, ensure that it is your debt and that the collection agency has the right to collect it. You can request debt validation by sending a debt validation letter if your initial contact with the collection agency occurred within 30 days. A collection agency that cannot validate your debt with sufficient proof cannot collect from you, including listing the debt on your credit report. However, if the collection agency has sufficient evidence and provided it to you, collection activities may resume. It may be better to wait until the time allowed for credit reporting on debts nearing the seven-year mark expires. Once the item is automatically deleted from your credit report, it will no longer affect your credit score. Only send a pay for deletion letter if you can pay the full amount once your offer is accepted. You might have a certain period to make the payment before the offer is revoked and collection efforts resume. Send the letter and your follow-up payment via certified mail with a return receipt request. This gives you proof that your letter and payment were sent and received. Be sure to keep a copy of the letter for your records or in case you want to try the strategy with another creditor or debt collector.
WhatWhat if your pay-for-delete offer is rejected?
Unfortunately, there is no guarantee that your pay-for-delete offer will be accepted. The offer is just a request. However, you can:
– Pay the full amount anyway, as a zero balance is better than an outstanding balance.
– Settle the account for less than the original amount owed; you must make a settlement offer and it must be accepted by the creditor or debt collector.
– Wait until the account is transferred to another debt collector (this happens often every six months, but sometimes it does not happen at all) and make a new offer for pay-for-delete or settlement.
– Not pay and wait until the time limit for credit reporting expires, and the item is removed from your credit report. Please note that collection efforts will continue (you can stop third-party debt collector calls with a cease-and-desist letter) and you may face legal action due to the debt.
Frequently Asked Questions (FAQs)
1. What is the statute of limitations for debt collection?
– Debt does not go away until it is paid in full. This means there is no time limit on how long collection activities can take. However, there is a time limit on how long you can be sued for a debt. This is the statute of limitations and it varies from state to state. Generally, the statute of limitations ranges from three to six years. If you are sued for a debt that may be outside the statute of limitations in your state, the best course of action is to consult an attorney who offers assistance.
2. How can I find out which debt collector owns my debt?
– You have a few options to find out which debt collection agency owns your debt. You can ask your original creditor, but this information may not be accurate if it has been sold multiple times. You can also obtain a free copy of your credit report and see how it is listed there. The information may be outdated, especially if the debt was just purchased. There are many debt collectors who reach out, so you may also check voicemail messages or the phone numbers that have contacted you.
Source: https://www.thebalancemoney.com/sample-pay-for-delete-letter-960563
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