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PFD - will that work when have to do payment plan?

Established Member

PFD - will that work when have to do payment plan?

I've done searches through the forums but can't find the answer to this question...


I have several recent charge offs due to divorce (totalling about 10,000, both joint and individual).  I don't have the money to pay the amounts in full, but would like to work out payment plans for each.  I have received dunning letters, but have not yet replied because of what I have read in the forums (too scared...Smiley Happy ).  My question is, can I do a request for PFD contingent upon satisfactory completion of a payment plan?  Or, do these usually only work if you pay the total amount owed in one payment?  Should I work out a payment plan first, and then when I am almost done making payments, then request a PFD?  Any advice is sincerely appreciated!!


Message 1 of 4
Moderator Emeritus

Re: PFD - will that work when have to do payment plan?

before thinking about making payments or a PFD.  You must know what the DOFD/DOLA is on all accounts.


What your SOL is so you do not get sued!


In the divorce   was anyone ordered to pay excisting debt?


A PFD can be done either way!   It is up to whoever it is that you are paying.


Who is reporting an OC  CA or both?



Message 2 of 4
Established Contributor

Re: PFD - will that work when have to do payment plan?

Most collection agencies will require either a balance in full or settlement in full in order to have a PFD. However, if a debt collector promises that a PFD is contingent upon the last payment in the payment plan...You need that in writing!! It is rare for most CA to offer that bennefit for consumers on a payment plan. Keep in mind that these collectors work on a comission based salary and a quota. So they are gunna want to have a SIF or BIF in exchange for PFD. Not all CA does an PFD due to corporate policy and compliance with Metro 2 and FCRA. Hope that helps, good luck!
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Message 3 of 4
Valued Contributor

Re: PFD - will that work when have to do payment plan?

The amount of PFD varies with the age of debt - CRTP and SOL status are the main pressure points for any CA.


If one can't be sued and the debt might fall off the Credit Reports soon, the value of that debt is less than 10% of the principal, approaching 0% very fast.


I personally settled PFDs for 15% and 25% of the original amount - not that old 4-5 years..


Palisades Collections owner is a public company that for few years tried to be really hot on the stock market - they were doing lot of PR about their financial health, showing they were buying lots of debt for little money - all upside in their view. Some folks even bought their stock.


However, all the press releases showing they bought huge amounts of debt for pennies to the dollar, one public transaction was $820 Millions of debt for $30 Million purchase price (<4% of the value), started hitting back when people realized most of it was junk, never collectable, hence the discount price, and they started dumping the stock. Some courts and AGs didn't see this favorably either when Palisades brought people in court without any documentation about their claims.


There is no such a thing a compliance with corporate policy - I never heard of signle CA that didn't PFD at one point or another.


There is no such thing as comliance with FCRA - the only FCRA obligation is to report correctly - there is no obligation to report at all. In fact companies pay to report - some report to only one bureau because is expensive.


So any response that says we can't because of policy or FCRA is complete total BS. They are just negotiating back.




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Message 4 of 4