Question regarding PFD process.

[Anonymous]

I made a post on here a few weeks ago seeking advice on raising my credit score and got some great info.  I'm now about to pay off a charge-off from Midland Credit Management.  I got a letter a while back saying that they would do a PFD for 60% of the total amount, which is around $1100.  I wanted to make sure I was doing everything the correct way and take no chances on this.  My main question is should I initiate this payoff by calling them and requesting they send a final letter stating the agreement?  I have seen some forum posts with people advising doing all steps by mail, but I did not know if that would really make a difference in this case and I want to get things going as quick as possible. 

Thanks in advance for any info!

[Anonymous]

I did it over the phone by telling them to email me the agreement on a company letterhead with a signature and i called them back and payed after i received the paperwork. Make sure that the amount is on there too.

[RobertEG]

The letter constitutes written agreement to delete provided you comply with the state provision of paying at least 60%.

It is a contract provision that is enforceable in court should they fail to comply.

I would not worry about their failure to comply, as you have recourse to a simple breach of contract action in small clams court.

Additionally, if more than 2 years has also expired since the reported DOFD, then Midland has also made public posting of their standard policy of deletion if you pay or settle the debt.  That is a clear statement of their policy that is also enforceable should they fail to comply.

The only time I might seek another written statement is if they have only provided their promise orally.

While an oral promise made in advance and relied upon in fullfilling your end of a contract is legally binding, it is a bit more difficult to prove the promise itself if they should breach, so it may be prudent to at lease seek a written promise, but it is not essential to preserving your right.

In your case, I would simply remit the agreed settlement amount under a cover letter that references the agreed deletion provision.