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New Visitor
Posts: 1
Registered: ‎07-03-2007
0

collection accounts

I am starting the process of helping my husband clean up his credit. He has about 6 collection accounts. I understand that I need to request a PFD when I contact the CA. I seen the example letter for this in the ficoscoring101 link however I am wondering if I should state that I am disputing the debt, since I know that the debt does belong to him? If the CA does not agree to a PFD should I still pay the collection? I am considering getting a loan to pay off all the collections so that we can just be done with it. Will it help to pay them all off at once or one at a time? We need his fico score to increase so that we can refi our mortgage loan we have an arm loan and the rate keeps getting higher.  Any advice anyone has will be appreciated.
Frequent Contributor
Posts: 356
Registered: ‎06-06-2007
0

Re: collection accounts



manz wrote:
I am starting the process of helping my husband clean up his credit. He has about 6 collection accounts. I understand that I need to request a PFD when I contact the CA. I seen the example letter for this in the ficoscoring101 link however I am wondering if I should state that I am disputing the debt, since I know that the debt does belong to him? If the CA does not agree to a PFD should I still pay the collection? I am considering getting a loan to pay off all the collections so that we can just be done with it. Will it help to pay them all off at once or one at a time? We need his fico score to increase so that we can refi our mortgage loan we have an arm loan and the rate keeps getting higher.  Any advice anyone has will be appreciated.





MY understanding is (and jump in if I am wrong), that disputing the debt and PFD are two different things.

Disputing means you are saying it is not your debt, or not a vlaid debt for X reason.

A PFD Letter is an offer for you to settle a valid debt, if they are willing to delete these files from your CR.

As for paying off the collections, it is supposed here, that it has great effect on your score, as it is still listed as a collection. I have no knowledge of this as I am still fighting for PFDs before paying any off. You also may want to consider if the collections have passed you states SOL. If the are not past your SOL there is a possibility you may be sued for the amount owed, plus costs. If it is past your SOL, they should be more inclined to accept a PFD as at least they would be getting some money.

As for a score increase, someone else will have better advice, I am still working on mine, and trying to get a score increase.


P.S. if the above info is correct it is due to all of the helpful folks here on theis board.
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
0

Re: collection accounts

Personally, I would never send a dime without PFD.
Member
Posts: 8
Registered: ‎05-19-2007
0

Re: collection accounts

Depending on how much they are for, the lender may not be willing to refinance the loan if your husband has unpaid collections, regardless of his FICO score. I agree that PFD is the best bet, but if it becomes very clear that they will not PFD, you may have no choice but to pay them. It depends on the type and amount of collection - if any of them are medical, the lender will probably be more lenient.
Established Contributor
Posts: 578
Registered: ‎06-18-2007
0

Re: collection accounts



manz wrote:
I am starting the process of helping my husband clean up his credit. He has about 6 collection accounts. I understand that I need to request a PFD when I contact the CA. I seen the example letter for this in the ficoscoring101 link however I am wondering if I should state that I am disputing the debt, since I know that the debt does belong to him? If the CA does not agree to a PFD should I still pay the collection? I am considering getting a loan to pay off all the collections so that we can just be done with it. Will it help to pay them all off at once or one at a time? We need his fico score to increase so that we can refi our mortgage loan we have an arm loan and the rate keeps getting higher.  Any advice anyone has will be appreciated.


As I understand it, stating in the PFD letter that you are disputing the debt is a form of protection just in case the CA wants to seriously go after you.  All you are trying to say basically "hey! this is on my credit report and if I send you money, I want this off".  No need to acknowledge anything.  You don't want to give them the ability to come after you (court, etc.) all you want to do is give yourself the best opportunity to get the collection deleted off your report.
 
I agree with Tusc, no deletion, no money.

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