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It is OK for a PFD letter to not be for full amount of debt?

New Member

It is OK for a PFD letter to not be for full amount of debt?

What I am trying to do for my wife is this....

She has a large outstanding balance with a CC that is more than likely charged off...She was receiving letters for a settlement for about 50%, now those have stopped and a different company is asking for the full amount.  We will be in a position to pay a settlement (at 40%-60% of original balance) in then next 60 days, should we send a PFD letter and start at 40%?

Message 1 of 12
11 REPLIES
Moderator Emeritus

Re: It is OK for a PFD letter to not be for full amount of debt?

Absolutely you can offer a PFD for a discounted price!

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 12
New Member

Re: It is OK for a PFD letter to not be for full amount of debt?

That is awesome news!  Is it something we should wait until we have the money for, or start the ball rolling now, and give a date of when it will be paid off by?

Message 3 of 12
Moderator Emeritus

Re: It is OK for a PFD letter to not be for full amount of debt?

Works either way, but I'd save the money that you want to settle for, then offer it.  That way if they accept, you could do the deal right then.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 4 of 12
Frequent Contributor

Re: It is OK for a PFD letter to not be for full amount of debt?


ForMyWife wrote:

What I am trying to do for my wife is this....

She has a large outstanding balance with a CC that is more than likely charged off...She was receiving letters for a settlement for about 50%, now those have stopped and a different company is asking for the full amount.  We will be in a position to pay a settlement (at 40%-60% of original balance) in then next 60 days, should we send a PFD letter and start at 40%?



Be careful doing this,beacuse they can sell the remaining bal. to another CA.


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Message 5 of 12
Moderator Emeritus

Re: It is OK for a PFD letter to not be for full amount of debt?

Not if you have it in writing that the debt was satisfied, they cannot turf it to a new CA.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 6 of 12
Frequent Contributor

Re: It is OK for a PFD letter to not be for full amount of debt?


Shogun wrote:

Not if you have it in writing that the debt was satisfied, they cannot turf it to a new CA.



Yeah, i would have to have it in writing that said the account is closed and paid.


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Message 7 of 12
New Member

Re: It is OK for a PFD letter to not be for full amount of debt?

Good news...we did receive a settlement offer, from a different CA   It's a sweet deal but we won't have the money until after it expires...how can I draw this out so when I have the money I can pay it?  Just ignore it and send a PFD when we have the money For the last offer?

Message 8 of 12
Valued Contributor

Re: It is OK for a PFD letter to not be for full amount of debt?

How large is the the balance?  If you make a large settlement it will have tax implications.

ccpics2.jpg
Message 9 of 12
Frequent Contributor

Re: It is OK for a PFD letter to not be for full amount of debt?

^^^ what he said. Any debt forgiven in a settlement where the forgiven amount exceeds $600 will be reported to the IRS and you will be 1099'd. It will add to your taxable income for the tax year it was settled in.

GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Message 10 of 12