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CA won't accept PFD - Now What?

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Etno
Valued Member

CA won't accept PFD - Now What?

I have a debt (student loan) originally with Citibank. Citibank says the CA owns it, the CA says Citibank owns it. It's reporting on my credit report as Citibank.

 

Anyway, I've been sending PFD letters for 6 months, no response except useless phone calls.They flat out tell me it's illegal. I tell them it's not (explain FCRA to them), then they say, yes it's actually legal but we've never done it...etc. It's been 6 months and they just refuse to budge. They offered me 25% settlement 5 months ago, now its 40% (NO PFD). It's obvious at this point with 4 agents and countless letters I'm not going to get PFD out of them. I am so happy for others here that are successful with PFD and I have done a few myself but it seems like the last ones left are the hardest!

 

I've been paying $100 "good faith" payments on this every month that goes toward the total. I want to quit paying these as soon as possible, so I need to do something. I also want to buy a house next year, and the debt won't fall off for another three years. Am I best just to accept the 40% with no PFD? Push for 25%?? Not settle at all? Help!! (Thank you!) 

 

The total owed is $3,900. I cannot afford to pay it off completely.

Message 1 of 7
6 REPLIES 6
RobertEG
Legendary Contributor

Re: CA won't accept PFD - Now What?

A PFD is a form of GW to the consumer, so arguing the appropriateness of their policy of no deletion is not apt to foster much GW.

No, it is not illegal, but yes, it is in compliance with the "no deletion based on payment of the debt" provision in their credit reporting agreements with the CRAs.

 

If they agree to a settlement, you might at least request that they not additionally report a "paid for less" special comment, which will then make your CR appear the same as if it was paid in full.  Some potential benefit in any future manual review.

Message 2 of 7
icanimprove
Established Member

Re: CA won't accept PFD - Now What?

+1 for RobertEG's statements re: PFD.

 

I haven't had much success with PFD's either. However, I have had success with settlement/PIF and then GW deletion.

 

Have you reached a firm agreement with the CA to settle the $3900 debt for $1560 or 40% of the balance? How much have you paid thus far? Are Citi and the CA both reporing on you CR? Also can you give the name of the CA? I have found the more specific info provided the more forum members are able to help.  

Message 3 of 7
Etno
Valued Member

Re: CA won't accept PFD - Now What?

Thanks so much for your reply.

 

Only the original creditor (Citi) is reporting and not the CA. I have not agreed to the settlement. I was previously offered 30% so I was frustrated at the 40%. The name of the collection agency is Capital Management Services (mailing address in New York). They have been such a paint to deal with. 

 

Seems like the best option is to accept the settlement with the stipulation that they at least change it to paid in full?

 

 

Message 4 of 7
golo
Frequent Contributor

Re: CA won't accept PFD - Now What?

I know it sucks,i have a CA that won't budge either,ugh,thier name is American Credit Bureau.

Message 5 of 7
Etno
Valued Member

Re: CA won't accept PFD - Now What?

I'm sorry to hear that, best of luck with them!!

Message 6 of 7
DaveSignal
Valued Contributor

Re: CA won't accept PFD - Now What?

In my experience, some stuff is easy to get off and some creditors have strict policy against it.  After about a year of trying to repair derogatory marks and having partial success, I have stopped and decided just to let my new accounts grow and negative accounts age.  My scores are still not perfect, but I have, nevertheless, been able to get all of the credit I want/need... It just took a little more work with recons than I would have to do if I had an 800 score.

 

EDIT:  I don't, however, have any negative accounts on my credit report that aren't paid.  It absolutely looks better when you are trying to recon a credit application that you have no upaid debt.

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