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New Member
WorkingTheSystem
Posts: 1
Registered: ‎08-12-2007
0

Re: PFD Example Letter

[ Edited ]
Hi,

This is my first post, I have been lurking and learning here for a while. Many thanks to Tuscani and all the posters that have helped me get my credit rating greatly improved. I went from a FICO score of around 550 to a little over 700 over the past few years. It takes time, but it feels good to claw my way back into the good graces of the banks and credit agencies.

I only have one BADDIE left on my CR, so I am using a modified version of your PFD Example letter to try to get this one done. The statute of limitations just expired for this credit card that now has a balance of $11,000. Of course the original credit line was only $5,000, but they were pretty good about finding fees and interest to puff it up.

I actually think I paid this, but I cannot find a record of my payment since it was about 6 years ago and I only keep about 3 years of old bills around. 6 years ago I settled all of my credit card debt through a third party negotiator for about 40% of the balances. I had $50,000 in credit card debt after a failed business venture. We settled all of them one by one, and my credit was pretty well nuked for years after that.

The collection agency for this one remaining BADDIE has been calling me for about a year now. I even sent them a copy of my credit report that showed a zero balance for the account, but they wanted a letter on the letterhead of the original creditor showing it was paid. I don't have it, I'm not sure I ever did. I did not know I would need it.

This thing will fall off my credit report late next year, but I have an extra $30,000 in cash right now since I have been living a simplified life for a while now. I am thinking of buying a house sometime this year or next. I am going to offer them 10% just to add (hopefully) a few dozen points to my score. I am trying to get over 720, that seems like a pretty good cutoff point for lenders, especially with all this subprime mortgage mess going on now.

Here is a modified version of your sample letter that I will be sending. If you have time, please let me know what you think of it. I will be sending it via certified mail with return receipt this week.

-- Start WorkingTheSystem Letter

August 17, 2007

Collection Agency
1212 Maple St
City, State Zip

Re: Collection Account for Original Creditor Account #: 00000xxxx

Amount: $11923.65

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am sure I have already paid this, but I cannot find the record of payment. After I found that my credit report showed a zero balance for this account, I disposed of my old records. Furthermore, I have found out that the statute of limitations has expired for this debt, and it will not even appear on my credit report at all sometime next year.

In the spirit of compromise, I am willing to pay this account for 10% of the amount shown in your August 1st letter to me 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 thousand one hundred ninety two dollars and thirty seven cents ($1,192.37) will be sent to 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 and I will simply wait for this item to be removed from my credit report sometime next year through the normal credit aging process.

Please address all correspondence regarding this account to:

Working T System
13264 System Avenue
Systemville, SY 12345

Thank you,




WorkingTheSystem

-- End WorkingTheSystem Letter

I think it will work. If not, I will just wait for it to drop off of my report. Thanks for all of the good advice. I just want to be a good risk and benefit from a good banking system.

Cheers!

WorkingTheSystem

Message Edited by WorkingTheSystem on 08-12-2007 05:27 PM
Valued Member
demitasse03
Posts: 46
Registered: ‎06-16-2007
0

Re: PFD Example Letter

What if you have been paying on an account and now want to settle in exchange for a delete? How would the language change in the letter?
New Member
on_my_way
Posts: 7
Registered: ‎08-15-2007
0

Re: PFD Example Letter

in your opinion, how likely is a CA to agree to something like this (given all of the demands in the letter)? I have been waiting to receive instructions on how to write a letter like this, but I still want the CA to go along with the program (although not at my expense...the object is to protect myself, I know).
New Member
summertime
Posts: 5
Registered: ‎05-09-2007
0

Re: PFD Example Letter

I like the letter but, the account is paid- the collection agencies agreed it was not valid and said they would not show it owing or report it- WAMU did.  contacted WAMU and they agreed to take care of it. never happened - disputed- and they report a new date. after I dispute it. but still shows paid.
what about the dates on charge offs can they keep updating them. after it has been charged off for years. Can they show the date paid in full or just show it paid with no new date,??? I am confused on this
Established Member
hschiel
Posts: 16
Registered: ‎08-28-2007
0

Re: PFD Example Letter [Did I mess up?]

I'm just getting started with my credit repair.  I'm starting with what were my Sears accounts have been sold to a collections agency.
 
My first step was sending a validation letter to the agency.  If they can validate the debt (and I'm sure they can-I know these accounts are valid), can I still send a PFD letter? 
 
I'm afraid I jumped into this without the proper research.  I wasn't even thinking about SOLs and the like.  Can I send a PFD with a settlement amount even if the debt is valid?
Valued Member
smlala
Posts: 32
Registered: ‎09-04-2007
0

Re: PFD Example Letter [Did I mess up?]

Hi there-
 
I'm helping my friend get out of some major financial trouble and we've just started looking at his credit report.  He has one particular collection from an apartment he had to abandon after Katrina.  The apartment wasn't damaged, but his place of work was demolished, so he ended up having to move.  Since they "re-opened" the apartments a month or so after the evac, they're now trying to collect $329 from him.  He was current on his rent payments prior to Katrina.
 
Personally, I think this one is a bit of a crock of you know what, although per his lease, he says that he's legally liable.  Does anyone have any opinions on the best way to handle this one?  A PFD letter or a GW letter?  If we did a PFD letter, I would personally want to try for a reduced settlement... but what would a good dollar amount be?  50%?  25% because they're being stupid and ridiculous?
 
Can I tell them I think they're stupid and ridiculous???
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
0

Re: PFD Example Letter [Did I mess up?]



hschiel wrote:
I'm just getting started with my credit repair.  I'm starting with what were my Sears accounts have been sold to a collections agency.
 
My first step was sending a validation letter to the agency.  If they can validate the debt (and I'm sure they can-I know these accounts are valid), can I still send a PFD letter? 
 
I'm afraid I jumped into this without the proper research.  I wasn't even thinking about SOLs and the like.  Can I send a PFD with a settlement amount even if the debt is valid?



Yes.. PFD still applies regardless.
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
0

Re: PFD Example Letter [Did I mess up?]



smlala wrote:
Hi there-
 
I'm helping my friend get out of some major financial trouble and we've just started looking at his credit report.  He has one particular collection from an apartment he had to abandon after Katrina.  The apartment wasn't damaged, but his place of work was demolished, so he ended up having to move.  Since they "re-opened" the apartments a month or so after the evac, they're now trying to collect $329 from him.  He was current on his rent payments prior to Katrina.
 
Personally, I think this one is a bit of a crock of you know what, although per his lease, he says that he's legally liable.  Does anyone have any opinions on the best way to handle this one?  A PFD letter or a GW letter?  If we did a PFD letter, I would personally want to try for a reduced settlement... but what would a good dollar amount be?  50%?  25% because they're being stupid and ridiculous?
 
Can I tell them I think they're stupid and ridiculous???


Why are they saying he owes $329? Unpaid rent from the evacuation?
Valued Member
smlala
Posts: 32
Registered: ‎09-04-2007
0

Re: PFD Example Letter [Did I mess up?]

Since there was no damage to the complex, the apartment opened back up after the evacuation and they expected payment AFTER Katrina.  If you recall, Katrina hit at the very end of August.  I believe this is for remainder of September's rent before he was able to call and terminate residency.
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
0

Re: PFD Example Letter [Did I mess up?]



smlala wrote:
Since there was no damage to the complex, the apartment opened back up after the evacuation and they expected payment AFTER Katrina.  If you recall, Katrina hit at the very end of August.  I believe this is for remainder of September's rent before he was able to call and terminate residency.



Ok. Sounds like he is still liable. I would try a PFD (assuming there is a collection being reported).

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