Question About PFD Letter

[almost_there]

Hi there,

I'm going to ask Target for a PFD. I only owe them $196 and am still kicking myself for letting this go to CO status, but it is what it is. I don't know if I'll have any luck, but in looking at the PFD letter the opening language is to basically deny the debt. Is this mandatory? The debt is mine. It's something I can pay now. I don't want to piss anyone off by denying it. It was only CO last year. They report it as a CO every month. Would it be okay to claim mea culpa in my PFD letter and beg their positive consideration? Also, do I send the payment with the PFD letter or wait for their response?  Please see my suggested change to the PFD letter below and let me know what you think if you can. I appreciate the feedback.

Thanks!

How the PFD Letter currently begins:

Collection Agency
1212 Maple St
City, State Zip

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

Amount: $196.00

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digits.

In the spirit of compromise, I am willing to pay this account IN FULL (or settlement percentage) 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.

Want to change to:

To Whom It May Concern,

In 2012 I was experiencing financial difficulties that regrettably did not allow me to honor the card issuer agreement for my Target account. Rightly, it was Charged Off and that Charge Off shows on my credit report. However, I am now in a better financial situation and want to honor my debt. It has plagued me this last year or so. I am in the process of rebuilding my credit so that I can have a more secure future and never find myself in this situation again. Target was helpful in first issuing me this card, and I ask for your help once again. Please.

I am willing to pay this account IN FULL if you agree to the immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). If you agree to the terms and accept this agreement, certified funds for the settlement amount of twenty-five dollars ($196.00) will be sent to Target 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.

Target 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, Target 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 explicity 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 request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

You
123 Any Street
City, State Zip

[guiness56]

Never, ever, use that PFD letter.  It is demanding and gives conditions.  You can't tell them how long they have or when it needs to be removed or who they can talk to.

Plus you are disputing the debt which is something you don't want to do.

A PFD is a type of GW.  Go from there.

Who is reporting the debt, the CA or the OC.  The CA has no rights whatsoever to remove an OC account and vice versa.

[almost_there]

Yikes! Okay, but I got this PFD from the forums: http://ficoforums.myfico.com/t5/General-Credit-Topics/Frequently-Requested-Threads/m-p/10675

Is the above link obselete? Is it okay to use the GW letter from this same thread as my template instead? Is the way I changed it in the beginning at least okay?

The OC is the one reporting the debt. Target is who I want to address my letter to.

Thanks!

[guiness56]

It used to work but it is known now that nice and polite PFDs get you much further than threats and demands.

Your paragraph about why you got behind is fine.  Everything after that needs to go.  Make no mention of a dispute at all.

Yes, send the PFD/GW to Target.  The GW examples are fine.

The link isn't obsolete just some things shouldn't be used.

[almost_there]

Okay, got it. Thanks! Wish me luck!

[guiness56]

Good luck!