General Credit Topics

[sofd_4715]

I had some collections from several years back that showed up on my reports.  One was a Cap One CC from 2004 showing as charged off.  I contacted them to make arrangements to settle, though now I'm advised that this will likely lower my FICO.  Anyone had any experience with this?  Since I've already updated my information with them, what might I possibly do to ensure that my actions will be reflected favorably?

[nikkoslilmouse]

Have you made any payments as of yet. If not try a PFD before you make any kind of payment arrangements.

[sofd_4715]

Forgive me...what is a PFD?  I made an interest payment of $78.63 by phone, then told the rep I'd call him within 48 hours to provide checking information to make two equal payments of $600 over the next two mos.  The actual amount was for $1801.00.  I'm almost of the mind that I could pay the full amount of $1801.00 and have better bargaining power for having it removed, but not quite sure how to go about this.  I feel as though if I'm initiating the contact to try to make things right, they could do something in return. 

[nikkoslilmouse]

PFD = Pay for delete letter.

You should never never ever talk to a  CA over the phone and always get things in writing. They may not be interested in doing this now since you made a payment and it started your SOL all over again. Now if you default on the agreement you made to pay this off they can sue you.

[Sylviatob]

Hi sofd, welcome to the forum.

PFD = Pay for Delete. It's an offer you make, IN WRITING to a CA or OC in exchange for deleting the baddie from your record. Print out our Common Abbreviations:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=52625

NEVER talk to a collection agency on the phone. Writing only, CMRRR(cert.mail, ret. rec. req.) Make no committments until you know EXACTLY where you stand with them.

What are the details? The OC, the CA, who owns the account, how old is it, what state, etc, etc. We really need details to help you.

Sorry to say Cap1 is not very forgiving, from what I've heard here, and my experiences with them.

[sofd_4715]

Okay...so since I've already talked to them on the phone and verbally stated that I'd pay a "settlement", what if I:

1)  Negotiate a PFD for full payment, following up in writing, or;

2)  Pay the full obligation, and later dispute it.

What mechanisms might be in place under the two above scenarios to have it totally removed?  Would the "full payment" option be an ace in my hand?

[nikkoslilmouse]

I would sent Them a PFD letter and state you are willing to pay in full only if they delete. I would not pay in full or settlement and then try to dispute that might backfire unless you wait a few months after you paid it but remember if you settle some CA have been know to sell the remaining balance. I would try to get them to put it in writing that they will not be allowed to do that under your agreement to settle