Reply
Member
JohnL1900
Posts: 37
Registered: ‎12-02-2012
0

PFD letter to settle $481 collection? Need advice.

I have a medical collections account from August 2007 for $481. I was going to ignore it as chances they will sue are probably very small since it's such a small amount but seeing how much success people on here have had with a PFD letter, I am thinking of going that route.

 

Would offering 50% be a good way to go about it? Are there any sample letters anyone can recommend? I found this online but it seems pretty lenghty: http://credit.about.com/od/debtcollection/a/payfordelete.htm


Starting Score: Equifax: 529
Current Score: Equifax: 672
Goal Score: 720


Take the FICO Fitness Challenge
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: PFD letter to settle $481 collection? Need advice.

Example letters - PFDs, GWs, DVs, etc.

 

There's an example in the above link. The settlement amount is your call. Some are very open to a settlement. Some are not. And yet others don't accept PFDs at all. Personally I like to offer 100%, but that's because the time to get it off is more important than the money saved. I never wanted to be in a position where they rejected a fixed percentage, like 50%, to which I had to back track with counter offers in new letters at 60%, 70% and so on.

Member
JohnL1900
Posts: 37
Registered: ‎12-02-2012
0

Re: PFD letter to settle $481 collection? Need advice.

[ Edited ]

I'm kind of split on that. It's scheduled to drop off my credit reports automatically  in 1.5 years and I'm not even sure exactly how much damage it's even doing on my reports since it's pretty old. 

 

This is the letter I crafted from a template. Thinking to change the part where it says "This letter is in response to the letter on 03/31/2008 This letter is in response to your letter on 03/31/2008 related to the debt listed above. I wish to save us both some time and effort by settling this debt." as that seems odd since it's so old plus it's aknowledging  the debt. . Maybe I could do "This letter is in resposne to your credit report entry. I wish to save us both some time and effort by settling this matter."

 

 

 

Dear Collection Manager:

 

This letter is in response to your letter on 03/31/2008 related to the debt listed above. I wish to save us both some time and effort by settling this debt.

 

Please be aware that this is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below.

 

I am aware that your company has the ability to report this debt to the credit bureaus as you deem necessary. Furthermore, you have the ability to change the listing since you are the information furnisher.

 

I am willing to pay $240.93 as settlement for this debt in return for your agreement to remove all information regarding this debt from the credit reporting agencies within fifteen calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $240.93 payable to Bureau of Medical Economics in exchange to have all information related to this debt removed from all of my credit files.

 

If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. This letter should be signed by an authorized agent of Bureau of Medical Economics. The letter will be treated as a contract and subject to the laws of my state.

 

Please forward your agreement to the address listed above. 


Starting Score: Equifax: 529
Current Score: Equifax: 672
Goal Score: 720


Take the FICO Fitness Challenge
Mega Contributor
RobertEG
Posts: 17,815
Registered: ‎03-19-2007
0

Re: PFD letter to settle $481 collection? Need advice.

Is your stipulation that their offer be signed by an authorized official unconditional?  It sounds so.

Your choice, but it may be a show stopper.  A written agreement fowarded by the agent of the "authorized official" might be adequate... your call.

 

A PFD is a form of good-will request.  The offer sounds more of demand than request for good will. As such, I would leave out the binding legal contract part.

It might dissuade them from continuing any negotiations under peril of legal action asserting their agreement has reached the stage of contract that you will attempt to enforce.

Not, in my opinion, necessary.

Member
JohnL1900
Posts: 37
Registered: ‎12-02-2012
0

Re: PFD letter to settle $481 collection? Need advice.

I just took and pasted what I found online so I'm open to any suggestions and appreciate them. :smileyhappy:

 

I took that part as sort of a "suggestion" or "directions" to the colletions agency, in case they hadn't done one of these before. Should I completely delete the ending "

This letter should be signed by an authorized agent of Bureau of Medical Economics. The letter will be treated as a contract and subject to the laws of my state." and just finish the letter with "If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. "?

 

Also, is it important to include the part where it says "you also agree not to discuss the offer with any third-party, excluding the original creditor."? Why would it matter if they discuss the offer with a third-party?

 

I do want it to sound friendly and not demainding. 


Starting Score: Equifax: 529
Current Score: Equifax: 672
Goal Score: 720


Take the FICO Fitness Challenge
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: PFD letter to settle $481 collection? Need advice.

Agreed with Robert.  I sent out a PFD with the standard stuff you find in PFD templates online, like 14 days to submit delete, company letterhead, company official, sets of fingerprints, etc.  They ignored it all.  Luckily they accepted it anyway, and I was plenty happy about it.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Member
JohnL1900
Posts: 37
Registered: ‎12-02-2012
0

Re: PFD letter to settle $481 collection? Need advice.

Changed the second part of the letter to this...better, or trying too hard?

 

"

I am willing to pay $240.93 as settlement for this debt in return for your agreement to remove all information regarding this debt from the credit reporting agencies within fifteen calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $240.93 payable to Bureau of Medical Economics in exchange to have all information related to this debt removed from all three credit bureaus (Equifax, Transunion, Experian).

 

If you are willing to accept this offer, please prepare a letter on your company letterhead agreeing to the terms and forward your agreement to the address listed above. 

I appreciate your consideration.

 

Sincerely, 

 

Name"


Starting Score: Equifax: 529
Current Score: Equifax: 672
Goal Score: 720


Take the FICO Fitness Challenge
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: PFD letter to settle $481 collection? Need advice.

I like that better.  :smileyhappy:


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!
Regular Contributor
jandj80
Posts: 230
Registered: ‎09-22-2012
0

Re: PFD letter to settle $481 collection? Need advice.

I agree, that sounds much better. Save the big guns for later, if need be. (o:


Starting Score: EQ 416 TU 498 EX 468 Lender Fico's July 2012
Current Score: EQ 548 (Myfico) TU 655 (Walmart) CK 672 EX?? CS 642
Goal Score: For now: 640s


Take the FICO Fitness Challenge
Member
JohnL1900
Posts: 37
Registered: ‎12-02-2012
0

Re: PFD letter to settle $481 collection? Need advice.

Got the letter out today, Registered Mail w/ Return Receipt. It's going local so they should get it tomorrow. Here is hoping for a good outcome.

 

I have one other "Paid in Full Collection" on my credit report that isn't due to fall off until 05/2016. I'm going to see if I can send them a GW letter after I see what happens to the medical collections account, take it one at a time. Luckily that one only reports to one credit bureau so it's not so bad, especailly for things like a mortgage loan where they pull all 3 and take the middle score.


Starting Score: Equifax: 529
Current Score: Equifax: 672
Goal Score: 720


Take the FICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}