Quick PFD/CC Question

[Anonymous]

So I'm gonna be as precise as possible.

I am about to attempt to send in a PFD letter to get my Sprint crap handled. However, I want the letter looked at first and if any suggestion are to be made, please do so!  The account recently went to collections, and is now showing up on my credit report (still using CK since I'm broke for now). So if it is just now showing up, less that 30 days ago actually, will a PFD matter or count? Or should I just pay it off at once and hope for the best?

My second question is about my score in general and my CC. A few weeks ago I checked my score and it had, at first, both collections attached to it, my CC, and my score went from 659 to 554. When I checked, literally the next day, the collections were somehow taken off but the CC is still there? And when I checked last week, the Sprint thing showed up again and it is still there today. However that thing only dropped my Equifax score another 50 points (from 647 to 550 to 500 now). So is any of this making sense, possible, or even a real thing? And if so, can a 97% utilization on a CC drop a score over 100 points as well?

Also, I know you probably read that and went "**bleep** kid? How do you get 97% utilization?" Well I lost my job (laid off), didn't find another one in time to cover bills, my WF account overdrafted, I stopped using direct deposit cause I still had bills I needed to handle, account got closed, and I ended up using my CC as a debit card to pay bills as checks wouldn't get sent in time and some places (like my at the time insurance company) make is cheaper to use a card and do it online. I kind of had no better option. I am just now back on my feet and lowering that amount because I really don't use that card much. It just paid for my Netflix, but I recently ended that account so I could focus on lowring the amount. Not yoyoing it around. 

So besides that issue above, what about the other two questions (bolded for ease of noticing but the second question sorta involves the entire paragraph being read)? 

And below is the PFD letter I plan on using. Is it good enough? I sorta found it online (here) and tweaked it to fit my situation.

Account #:  ###
Amount: $436

To Whom It May Concern:

I am willing to pay this account in full 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. 

Certified funds for the full amount of $436 will be mailed to GC Services Limited Partnership, if you agree to the terms. In exchange for doing so, GC Services Limited Partnership will delete all references regarding this account from my credit files, and this debt shall be satisfied. 

GC Services Limited Partnership agrees to delete all information regarding this account from the credit reporting agencies within thirty days following receipt of payment as specified above and will not discuss the terms of this settlement with anyone. If contacted by any third party, including credit-reporting agencies, GC Services Limited Partnership 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 agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of GC Services Limited Partnership.


Please address all correspondence regarding this account to: 

My Legal Name

My Address

City, State, Zip

Thanks in advance,

My Name Again

[titanofold]

The letter seems to forget you are asking for a favor.

Be less legal, and more friendly, because a PFD is actually illegal.

Be nice.

[Anonymous]

Is it illegal? I looked around and saw it was legal, just shady sounding.

And exactly how then? Like I get I should be nice but I'm also attempting to not have them take my cash and then proceed to go "well, it's not like you have any proof that we had an agreement" so now I'm out 400 and owe 400 more and there's nothing on my side.

[gdale6]

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@Anonymous wrote:

Is it illegal? I looked around and saw it was legal, just shady sounding.

And exactly how then? Like I get I should be nice but I'm also attempting to not have them take my cash and then proceed to go "well, it's not like you have any proof that we had an agreement" so now I'm out 400 and owe 400 more and there's nothing on my side.

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A PFD is not illegal, a creditor that reports an account must report accurate information but there is no law that says they have to report anything at all, its up to the creditor as to whether or not accept or decline a PFD. Its a known thing that the CRAs dont want collectors to remove the collection once its paid but that doesnt stop a creditor from being able to make that decision. There are numerous examples of PFD Im going to give you the links to them so you can get an idea on how to write one. Welcome to the board

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

[Anonymous]

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A PFD is not illegal, a creditor that reports an account must report accurate information but there is no law that says they have to report anything at all, its up to the creditor as to whether or not accept or decline a PFD. Its a known thing that the CRAs dont want collectors to remove the collection once its paid but that doesnt stop a creditor from being able to make that decision. There are numerous examples of PFD Im going to give you the links to them so you can get an idea on how to write one. Welcome to the board

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

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The link you sent with the PFD looks WAY better than mine. I'll try using that one and changing some of the info to match my particular situation. I just want it all in writing in case I get a would-be **bleep** who decides to screw me over. That's all

EDIT: I completely forgot, now rereading it, why I was iffy on using that version. I did in fact get confirmation, however I also moved twice sense then. So would that still apply to me?

[titanofold]

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@gdale6 wrote:

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@Anonymous wrote:

Is it illegal? I looked around and saw it was legal, just shady sounding.

And exactly how then? Like I get I should be nice but I'm also attempting to not have them take my cash and then proceed to go "well, it's not like you have any proof that we had an agreement" so now I'm out 400 and owe 400 more and there's nothing on my side.

---

A PFD is not illegal, a creditor that reports an account must report accurate information but there is no law that says they have to report anything at all, its up to the creditor as to whether or not accept or decline a PFD. Its a known thing that the CRAs dont want collectors to remove the collection once its paid but that doesnt stop a creditor from being able to make that decision. There are numerous examples of PFD Im going to give you the links to them so you can get an idea on how to write one. Welcome to the board

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

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A federal/state/local law isn't required for something to be illegal. The agreements creditors and CAs have with CRAs do state that they musn't remove an account just because it was paid.

This doesn't mean that CAs can't or won't do a PFD, but they may state that as the reason they won't if they don't like you. Which is why you want to sweet talk instead of being forceful.

[gdale6]

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@Anonymous wrote:

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A PFD is not illegal, a creditor that reports an account must report accurate information but there is no law that says they have to report anything at all, its up to the creditor as to whether or not accept or decline a PFD. Its a known thing that the CRAs dont want collectors to remove the collection once its paid but that doesnt stop a creditor from being able to make that decision. There are numerous examples of PFD Im going to give you the links to them so you can get an idea on how to write one. Welcome to the board

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

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The link you sent with the PFD looks WAY better than mine. I'll try using that one and changing some of the info to match my particular situation. I just want it all in writing in case I get a would-be **bleep** who decides to screw me over. That's all

EDIT: I completely forgot, now rereading it, why I was iffy on using that version. I did in fact get confirmation, however I also moved twice sense then. So would that still apply to me?

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If you did get an agreement to PFD and didnt follow through you would need to confirm that they are still willing to do it so I might give em a call explain you had to move and see if the deal can still be used.

[Anonymous]

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@gdale6 wrote:

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@Anonymous wrote:

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A PFD is not illegal, a creditor that reports an account must report accurate information but there is no law that says they have to report anything at all, its up to the creditor as to whether or not accept or decline a PFD. Its a known thing that the CRAs dont want collectors to remove the collection once its paid but that doesnt stop a creditor from being able to make that decision. There are numerous examples of PFD Im going to give you the links to them so you can get an idea on how to write one. Welcome to the board

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

---

The link you sent with the PFD looks WAY better than mine. I'll try using that one and changing some of the info to match my particular situation. I just want it all in writing in case I get a would-be **bleep** who decides to screw me over. That's all

EDIT: I completely forgot, now rereading it, why I was iffy on using that version. I did in fact get confirmation, however I also moved twice sense then. So would that still apply to me?

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If you did get an agreement to PFD and didnt follow through you would need to confirm that they are still willing to do it so I might give em a call explain you had to move and see if the deal can still be used.

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I meant that I did get confirmation on the debt, as the example letter does say "I am not sure of the account number, as I have never heard from you regarding this account.".

I did hear from them, I just moved twice since the first time. But I was told ahead of time about the debts, I just never had any cash whatsoever to pay them. So I had no choice but to let it go to collections.

[Anonymous]

A federal/state/local law isn't required for something to be illegal. The agreements creditors and CAs have with CRAs do state that they musn't remove an account just because it was paid.

This doesn't mean that CAs can't or won't do a PFD, but they may state that as the reason they won't if they don't like you. Which is why you want to sweet talk instead of being forceful.

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Titanofold, you are incorrect and misleading people. It *may* amount to a breach of contract between the CRA and CA but it would not be illegal unless there is a federal/state/local law that would be violated. Also not sure how you are privy to the contracts that CAs have with the CRAs and your post amounts to speculation.

To OP: I would absolutely try and get them to respond to a PFD letter, and if they do just take a deep breath and pay for it. The cost of having it drag down your credit and affect your life for the next several years is too great to not pay.