New Member
Posts: 7
Registered: ‎11-04-2010

How beneficial will having collection accounts deleted from my credit reports?

Hello, I recently began credit rapair on my own and have 6 collection accounts with balances. I am interested in negotiating PFD letters to have them removed, however, I was wondering how beneficial this would be to my FICO score. These collections are within the past 2 years and are still within the SOL. Also, I would appreciate suggestions on how much to offer for settlement. I've read collection agencies pay no more than 7 cents on the dollar so not to offer more than 25% of the balance. Any advice is much appreciated. Thanks!
Mega Contributor
Posts: 17,222
Registered: ‎03-19-2007

Re: How beneficial will having collection accounts deleted from my credit reports?

[ Edited ]

One colllection is a major derog.  6 collections are a magnifiacation.  Deletion of any major derog, such as a colletion, from your CR, can only be beneficial.

But once that single CA is deleted, FICO still scores the others.  With muliple major derogs in a CR, deletion of one wont have a lot of FICO impact.

PFD letters are also a gamble.  You are gambling for their acceptance, in exchange for whatever you offer, that the debt is considered legally paid in full, and that they addtitioanally agree to CR deletion.  Both are "iffy" requests.

No creditor ever has to respond to a PFD offer.  The higher the % of offered payment of debt owed, the higher the probabilty of CA acceptance. If the debt is still within SOL, and you low-ball on a PFD offer, then of course, they can choose to continue to attempt collection of the full amount by filing .legal action.

No one can tell you what percentage of debt to offer in a PFD, or how they will respond to it.  It is a gamble on both sides.  In the end, PFD acceptance is up to the CA, and no one can predict their response.


Posts: 4,030
Registered: ‎03-24-2008

Re: How beneficial will having collection accounts deleted from my credit reports?

Welcome.gifto the forums and you have come to the right place to learn.


Collections are a huge hit to a CS, then hurt less and less as time goes on. Paying a CA will not help a CS, but it will stop future legal action, and you will also have peace of mind.Only having the CA removed will improve your CS.


I've heard that too,CA's buy debt for pennies on the dollar, but they will not pass that discount on to you.Because they are in business to make a profit.My experience will CA's, I settled some between 60-100% of the balance.Yes, some I had to pay in full.I never paid less then the original balance.Maybe  


When trying to PFD a debt within SOL, make sure you have the money to PIF, in case they serve you court papers.If that happens, try to negoate or PIF before the court date to avoid a judgment placed on your CR.But the CA would have to agree to cancel the court date.


Since these are recent CA's, find out who owns the debt the OC or the CA. It's better to pay the OC and if they will accept payment ask if they can call back the CA.I would suggest reading Credit Scoring 101 just the 1st post is OK and What Steps Do I Take?DV?PFD?,,,,,,,,,,,you may use the links below,if you wish:smileywink:,


PS. I hope I'm not confusing you.In the beginning it can get that way.So  log on here daily or as much as you can, take notes, read the stickys,make friends, read and learn from others who post.  

FICO's Oct 2013 TU711 EQ713 EX723~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Mega Contributor
Posts: 17,222
Registered: ‎03-19-2007

Re: How beneficial will having collection accounts deleted from my credit reports?

[ Edited ]

If the OC still owns the debt, and they agree to accept payment, they must then terminate their designated collection autthoity to the debt collector.

That only requries the debt collector to report to the CRA a $0 balance owed under their collection account.

It does not require the dedt collector to delete their prior, and accurate, CA reporting to the CRA.

"Call back"  by an OC of prior reporiting by debt collector of their proper CA reporting is a myth.

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