@RobertEG wrote:
The ultimate goal of the credit reporting system is to encourage as much reporting as possible, to retain accurate information at least until it has passed its credit report exclusion date. PFD and other subjective good-will deletions weaken that objective, and diminish the value of credit reports in the business perspective of the CRAs.
Spot on.
Moreover, I just want to point out that the idea that PFD involves any "goodwill" is spurious at best. To wit: The debtor, although possibly earnest in their intentions to resolve a debt, reluctantly agrees to pay, primarily just so that the negative reporting is deleted from their credit history; thus benefiting themselves well beyond what they would customarily receive according to correct credit reporting... which would otherwise just report it as a settled debt.
Conversely, there is no goodwill coming from the debt collector either, as they would only consider removing the debt record as a means to procure payment. So, at the sole expense of the data aggregator... the debtor and the collector both get away with a great train robbery. Thus, no goodwill has been given.
Goodwill would imply that someone involved take a selfless action, often giving up something, out of the kindness of their heart, or self sacrifice. Further, the data aggregator doesn't get a choice here, with no knowledge of this scheme against them; and if they were aware of it, the bureaus would surely choose to uphold the reporting of valid debts, since the creditors and collectors have already agreed to report any debt repayments as such.
Clearly, PFD is nothing more than quid pro quo, more akin to bribery, since it involves payment for the procurement of a deliberate circumvention of accurate credit reporting.
Perhaps there are some consumers that would willingly satisfy a debt, even if it weren't showing up on their credit reports. But, that's not what's going on here. So, let's at least call it what it is. The enemy of my enemy is my friend.
The reason that all this proliferation of PFD bothers me is because of this whole, holier than thou approach to credit repair. PFD has emerged as some kind of honorable way to repair one's credit. Just a reminder: there's no honor amongst thieves.
Moreover, disputing a debt through proper FCRA channels is no less honorable. In fact, it can be argued to be moreso.
All "credit repair" has a spectre of moral turpitude to it. But, pursuing legal means to improve one's financial standing is not designed to satisfy ethics standards. It's purely following the law of the land, to a tee. Which is no different than utilizing any other law, as written. Call it a loophole, if you will, but at least following procedures sanctioned by statutes has legal standing.
Conversely, bribing a collector to remove the reporting of a legitimately reported debt, is actually less legal, and less ethical, than just utilizing otherwise workable statutes to get that same reporting removed, based on a technicality, oftentimes without paying at all.
There's also the other brutal possibility that the collector spurns you, and you end up further acknowledging a debt, that continues to be reported in posterity. - So, the whole PFD scheme has much more downside to it.
Now, I know that this doesn't seem all the way right; and I tend to agree with a lot of that sentiment... about how things should be. I'm just the messenger. I don't necessarily agree with the way things are. I just try to share, based on my own life experiences; so that other people don't get the false impression that making deals with junk debt collectors is at all a good idea... just because they read it on some web forum. Talk about making a deal with the devil. There are just as many people that have horror stories of their dealings with untrustworthy, harassing debt collectors.
Don't under any circumstances trust a junk debt buyer; because they have zero obligation to go against credit reporting protocol. Also, they frankly just despise debtors, and think of all possible debtors as dead beats, that are nothing more than prospective marks. This is why they constantly and willfully harass people at work, trying to sully their reputation… to bully them into giving up their credit card number. They don't really care whether the accounting is accurate. Rather, I've seen many people get stuck getting huge monthly payments snatched out of their accounts... that add up to many times what they ever could have owed.
Sure, they might talk turkey about deleting something, under the table. But, based on their past behavior, in screwing people as often and as much as possible... they don't deserve the time of day. They are under no circumstances to be trusted. They're just as likely to go off and re-sell the debt to someone else, after you've already paid them... or, at least, thought you did. - No wait, there was some other additional interest they had totally spaced about; but really just made up out of thin air, when they got reminded by your tasty credit card number that... once a mark, always a mark.
I say... find a better way, that protects yourself in the process.
