Hi All! I'm beginning the process of "fixing" my credit. I've got a few red flags, which were mostly stupid mistakes from my college days. I've had several years of near-perfect behavior, but these looming collections accounts keep my score very low. Because I'm starting my own business and hoping to buy a home in the near future, I'm working to build my score. I recently sent a pay for delete letter to one of the credit agencies that is reporting me as a collections account. This account is set to expire in two years, but I'd really like to remove this earlier if possible. The total amount due is $328. This is the letter that was sent:
Re: Collection Account for Original Creditor Account #: ****
To Whom It May Concern:
This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my TransUnion credit report – which omits the last few digits.
In the spirit of compromise, I am willing to pay this account in the amount of $100 if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.
If you agree to the terms and accept this agreement, certified funds for the settlement amount of one hundred dollars ($100.00) will be sent to the above address listed for Online Information Services (Collection Agency) in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.
Collection Agency agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Collection Agency will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.
If you agree to the above terms, please prepare a letter on your company letterhead explicitly agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Collection Agency. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.
Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn.
The agency responded last week with the following:
Our office is in receipt of your letter of dispute and request for verification pursuant to 15 U.S.C. 1682g of the Fair Debt Collection Practices Act. Please be advised, we have contacted our client, xx, who has confirmed the name and address listed on the account as well as the amount owed. Attached are billing statements provided by our client that confirm the charges.
Please be advised, if we have reported to the consumer reporting agencies, in acknowledgement of your dispute, the account will be listed as disputed. Consumer reporting agencies may take up to 90 days to update reports and this is beyond our control.
I'm a little confused by their response. Has anyone experienced a similar scenario? Also, if they report it as disputed, does it have the potential to damage my score?
I checked my Equifax report today, and it does show that this agency re-entered me as "failed to pay" last week, and sure enough my score took a dive. Is there anything that can be done here? Am I understaning what is being reported correctly? Also, I'm willing to pay this debt in full, but my main purpose was to have it removed from my credit report. I started low, thinking I could always increase my offer. Now I'm a little hesitatnt to contact them again. Thanks in advance everyone!
