06-26-2009 08:59 AM
06-26-2009 08:59 AM - edited 06-26-2009 09:00 AM
Just wondering what a PFD is?
Paid for deletion. Say XYZ Co. has a $500 collection account on your credit report. You offer to pay XYZ Co. in exchange for immediate deletion/update of the CR to remove it. It's a quick way to get rid of a negative and prop up FICO scores a few points. Get the deletion promise in writing.
06-27-2009 06:30 PM
10-12-2010 08:43 PM - edited 10-12-2010 08:46 PM
PFDs are offered before a debt is paid, and can specificy any information that you want deleted from your CR, including a PFD to an OC for deletion of prior monthly derogs and/or any CO they posted. A PFD to a CA only relates to their reporting of a collection to your CR, and not prior OC account reporting.
Who you can offer a PFD to depends on who currently owns the debt. Some collections are posted by a CA as a collection agent of the OC, wherin the OC still owns the debt. In that case, you can PFD either the OC or CA in offer of their agreeement to delete their own reporting.
If the OC has sold the debt to a debt collector, then you can only PFD the CA. Any letters to ask for deletion of prior OC reporting once the creditor no longer owns the debt must, at that point, be done by way of a good-will (GW) letter to the OC.
PFDs are not a magic bullet, and are not always the best course of action. A PFD has absolutely no obligation for any response. They can jsut proceed with current activities, or maybe even escalate them. If you just send a PFD, and sit back and await response, it may never come. Or worse yet, could result in legal action for collection of the debt. PFDs always bear some risk. I woukld suggest, before putting reliance on a PFD offer, that you first be fully aware of your state statute of limitations regarding you legal defense of actions for collection of debt.
10-12-2010 10:25 PM - edited 10-13-2010 02:52 AM
A GW letter is just a retroactive plea for mercy, after money is in their pocket. No current $$ incentive for them to grant. GW must, in my opinion, show future $$ reasons for them to grant.
In fact, the actual granting of any GW request is techinically in direct violation of their credit reporting contract with the CRAs, which clearly specifies that deletion of pior, accurate reporting should NOT be deleted based on payment of the debt.
I dont discourage attempts at GW deletion, but they are easily dismissed with no response even required by the creditor.
Successful GW letters that I have seen offer more than just a plea for mercy. They also offer a reason why the grant of a GW deletion would foster their desire to want further business from you. They are captalists, not social service organizations.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.