Pay for Deletion Questions

[Anonymous]

I have recently reviewed my credit report and I am looking to rebuild my credit. I have closed negative accounts with some collection agencies. I have reviewed my options, and it looks fairly obvious that I should try to request a Pay for Deletion on my accounts with CA's before doing anything else (except to validate the account in some instances). However, I have some questions:

1.) If I have MULTIPLE accounts with one CA, can I request a Pay for Deletion on just ONE account (due to financial limitations), until I get the funds to pay off another?

2.) Will requesting or paying a PFD reset the SOL?

3.) If the CA has approved a PFD and it is paid, is the account completely removed from my credit report? Will my score go up (if at all)?

I do understand that when dealing with PFDs, I need everything in writing and sent through certified mail for the purposes of a paper trail. Is a USPS money order the best form of payment? Is there a way to verify when they received that payment? Thanks in advance!!!

[Anonymous]

---

locklin wrote:

I have recently reviewed my credit report and I am looking to rebuild my credit. I have closed negative accounts with some collection agencies. I have reviewed my options, and it looks fairly obvious that I should try to request a Pay for Deletion on my accounts with CA's before doing anything else (except to validate the account in some instances). However, I have some questions:

1.) If I have MULTIPLE accounts with one CA, can I request a Pay for Deletion on just ONE account (due to financial limitations), until I get the funds to pay off another?

Sure.

2.) Will requesting or paying a PFD reset the SOL?

Requesting shouldn't, since you deny the debt in the letter. Check local statutes as to what does/doesn't reset SOL so you can make certain the letter is worded correctly. Paying, doesn't matter b/c you are paying so no reason for them to sue.

3.) If the CA has approved a PFD and it is paid, is the account completely removed from my credit report? Will my score go up (if at all)?

That depends on whether you have more collections remaining on your report, how old the collection was, when it was last updated, etc.

I do understand that when dealing with PFDs, I need everything in writing and sent through certified mail for the purposes of a paper trail. Is a USPS money order the best form of payment? Is there a way to verify when they received that payment? Thanks in advance!!!

The PFD sample letter states to send certified funds. If you send your letter CMRRR, you can track it online at www.usps.com and know when they signed for it, plus you'll get your greencard back, which should be dated.

---

[Anonymous]

Excellent post! It did bring up one question I forgot about eariler...

What state's SOL applies to me? The one I currently reside in or the one the account was opened (or closed) in? Is there a link or website that lists the states SOL and how they apply to delenquent accounts? Thanks again!!!

[Anonymous]

They can sue in either state.

Some states toll SOL, meaning if you move from the state the SOL can be frozen.

You need to check state statutes to make sure what resets SOL and if SOL can be tolled and if it can, under what conditions.

You can find basic SOL here -

http://www.bankrate.com/brm/news/cc/20040116b2.asp

[Anonymous]

I had one final question. When sending a PFD letter and denying the debt, can the CA send a letter of validity for the other accounts, therefore not allowing me to request a PFD on them since it is proven that the debt is mine?

[Anonymous]

---

locklin wrote:

I had one final question. When sending a PFD letter and denying the debt, can the CA send a letter of validity for the other accounts, therefore not allowing me to request a PFD on them since it is proven that the debt is mine?

---

You can always request a PFD.

The reason for not acknowleding the debt in the PFD is to keep them from resetting SOL, if in a state where that would reset SOL.