Want to request PFD to pay off collections, but worried that it will restart the collection process

[lithium78]

I have 2 collections on my credit reports and they are really dragging my scores down.  They are due to fall off my CRs by the end of the year, but I want to pay them off so they won't reflect badly on me when I apply for a mortgage next year.  I'd like to request PFD for both collections, but I'm worried that if I do so, I will claim "ownership" of the debt and the CAs will be able to reset the 7 years for the collections on my CR.  Does anybody have any experience with this who can tell me what to expect and give me some advice?  Thanks.

[ztnjpv]

It doesn't work that way. 

The clock starts ticking toward the 7 year statute from the first date of the deliquency that led to the collection. Paying it off won't change that. You can either wait for it to fall off or get a guaranteed PFD letter IN WRITING before paying in full and get it removed sooner. That's it. It's your choice. 

Keep in mind that paying for less than the original amount will not get cooperation. It has to be paid in full. 

[llecs]

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@ztnjpv wrote:

It doesn't work that way. 

The clock starts ticking toward the 7 year statute from the first date of the deliquency that led to the collection. Paying it off won't change that. You can either wait for it to fall off or get a guaranteed PFD letter IN WRITING before paying in full and get it removed sooner. That's it. It's your choice. 

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+1. Nothing can reset the 7 yrs. It'll fall off no matter what you do.

BTW, if falling off this year, and you are applying for a mortgage next year, then know that they won't reflect badly on your credit when you apply for the mortgage...because they'll be gone. Though, IMO, I'd aim for a PFD now. Even if SOL and CRTP expires, they can collect forever. It's a nuisance. Also, aiming to get them off now means you can apply for the mortgage sooner, if you wanted to...or at least have the option.

[RobertEG]

....gone, unless the mortgage lendor asks if you have any unpaid, delinquent debt.  It might be less than truthful to state no simply because it is no longer being included in your CR.

There also remains the possibility that, if the mortgage app is for a principal amount of $150K or more, they could ask for a full credit report that includes any derogs that have otherwise been excluded from your normal credit report.  It is always best to have no unpaid bad debt. 

It is always possible that a creditor, particulary when the principal is large, could obtain access to the info on an old, unpaid bad debt.

[webhopper]

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@llecs wrote:

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@ztnjpv wrote:

It doesn't work that way. 

The clock starts ticking toward the 7 year statute from the first date of the deliquency that led to the collection. Paying it off won't change that. You can either wait for it to fall off or get a guaranteed PFD letter IN WRITING before paying in full and get it removed sooner. That's it. It's your choice. 

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+1. Nothing can reset the 7 yrs. It'll fall off no matter what you do.

BTW, if falling off this year, and you are applying for a mortgage next year, then know that they won't reflect badly on your credit when you apply for the mortgage...because they'll be gone. Though, IMO, I'd aim for a PFD now. Even if SOL and CRTP expires, they can collect forever. It's a nuisance. Also, aiming to get them off now means you can apply for the mortgage sooner, if you wanted to...or at least have the option.

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+1....  I would do the PFD after you get the DV

[RobertEG]

I dont see the benefit of a DV at this point.  The goal is apparently prompt CR deletion.

First, a DV would most likely be untimely at this point, and thus not invoke a cease collection bar.  Ergo, no pressure to respond.

And it is also not likely to promote a feeling of grant of GW deletion, which is what a PFD request includes.

If timely, a DV would bring all negotiations to a screeching halt due to its cease collection bar.

Meanwhile, you sit and wait for response to a DV that most likely invokes no penalty for not responding.