PFD-which amount do I offer to pay?

[reereetx]

I'm working on a PFD for an AT&T bill in collections.  The "original" balance was $72 and the "current" balance is $85.  Do I offer to just pay the original $72 as PFD and see if they accept or just cave and do the additional $13?  Not sure what the best "practice" is and after all, if they'll accept the PFD at the $72 original balance....why not save a little?  I have 3 other collections I will be working on although 1 of them is scheduled to drop in January 2016 so I think I'll leave that one alone.  One is for a medical debt of $479 with the date assigned being July 2013.  The other is for a Payday loan (I know I know!)....to Check N Go for $1,269 with date assigned being July 2014.  So I know those will be on my report for a while yet.  I'm starting small so that's why I'm wanting to pay the AT&T one and be done with it.  Right now my scores are in the mid 500's.  They took a hit in the winter when I got behind on a few payments (credit cards and student loan) due to a stillbirth in our family which devastated me and left me depressed and in a zombie like mode for a few months.  I didn't take care of business properly during that time and those lates have really hurt my score which wasn't wonderful before that....but they were at least over 600.  Just trying to get back on track now though.

[Anonymous]

First off, I'm very sorry for your loss. Is the ATT bill with a CA or still with ATT? If it is still with ATT the pay the thing off fully to keep a CA from adding to it. Best of luck.

[Anonymous]

I wouldn't quibble over $13 in interest at this point, the goal is to get it off your reports, and sweetening the pot a little may help achieve that goal.

[reereetx]

It's with a CA

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@Anonymous wrote:

First off, I'm very sorry for your loss. Is the ATT bill with a CA or still with ATT? If it is still with ATT the pay the thing off fully to keep a CA from adding to it. Best of luck.

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[reereetx]

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@Anonymous wrote:

I wouldn't quibble over $13 in interest at this point, the goal is to get it off your reports, and sweetening the pot a little may help achieve that goal.

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Thanks!

[Anonymous]

Agree with Norman. Pay that amount at 100% if they agree to delete. 13 bucks well spent. The payday loan one I would offer a much lower percentage for delete. Also, check the state laws about these companies in your state. I know that TX has been after them hard. 

[reereetx]

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@Anonymous wrote:

Agree with Norman. Pay that amount at 100% if they agree to delete. 13 bucks well spent. The payday loan one I would offer a much lower percentage for delete. Also, check the state laws about these companies in your state. I know that TX has been after them hard. 

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Thanks!  I will take the advice and offer the full balance!  Regarding the PD loan....I will look into that.  I know the original balance was also nowhere near that.  Hard hard lessons learned with those things.  I really did do my best effort to pay it back...the fees just became too overwhelming and I closed my bank account in order to keep them from withdrawing.  It's actually been several years (like 2008)...but apparently it's updated in the last couple of years for some reason.  New CA maybe?

[Anonymous]

Predatory lenders! Do check your state laws on them and your true DOFD. If it is going to drop soon it may not be worth the hassle. Otherwise I would go full out on the CA. They will generally cave easily. Best of luck to you. You have a great start!

[reereetx]

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@Anonymous wrote:

Predatory lenders! Do check your state laws on them and your true DOFD. If it is going to drop soon it may not be worth the hassle. Otherwise I would go full out on the CA. They will generally cave easily. Best of luck to you. You have a great start!

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Thanks so much for the advice!  Quick question though...on PFD letters....are they supposed to be sent CMRR or just the payment when they send documentation stating they will accept the offer?

[RobertEG]

There is a difference in results between a PFD and credit report exclusion.

While you can choose to wait for credit report exclusion, and thus remove the collection from scoring, that does not satisfy the debt.  It still exists, and could become an issue in future quests for credit.

A PFD, even if only a day prior to credit report exclusion, also discharges the debt.