beach123 wrote:Frankly, I'd send them a letter stating you are doing the best you can. I'd prefer to let it go to Court and see what the judge had to say - I mean come on jack you are donig the best you can, that's life - MAKE them work for it - I know you don't want a judgment on your record but there is the principle of the whole thing - you ARE trying - you could ALSO try contacting the OC and see why they are not ok with your payment plan...
Chances are, it would never end up in court. The amount's so small. Aside from that, it couldn't hurt to let them know you're doing the best you can. Recently, I had to do that with a CA on a medical collection of my husband's. I've been paying them $100 a month, due on the 15th, but which ran less than a week late, and prompted the letter demanding full payment. I copied that letter and added a note to it stating, "I have never failed to pay you the agreed upon amount, each and every month. Should you need or require the cancelled checks to substantiate the same, I will be more than happy to forward copies of them to you." They accepted that month's payment, and didn't complain when this month was also late. (I just can't get my husband to pay it). And guess what, I bet my life they cashed the check. 
As for PFD? It's never too late to PFD, so long as you haven't paid the debt in full, which you haven't.
I don't see why a PFD can't include some sort of payment arrangement. IE: If you agree (get it in writing) upon payment in full to delete all references to this account from all CRAs I will send you XXX, in so many monthly installments ...