topic Re: Downside of Pay for Delete? in General Credit Topics

Downside of Pay for Delete?

Anonymous — Tue, 08 Jul 2008 12:15:40 GMT

Hello Everyone, I have a tradeline from a collections company reporting a write-off, bad debt. Several years ago, I received an enormously high cell phone bill from Verizon (my teenager's phone!) It went to collections & I paid what I thought I owed. Anyway, now there is this trade line that I want to get rid of.

I will pay the amount they say I owe. Though morally I think it is wrong - what can you do, they have you over a barrel. I want this off.

My question is - is there a downside to a pay-for delete? I do not want to make this situation worse. Any advise would be very much appreciated. Thank you & God bless.

Re: Downside of Pay for Delete?

Anonymous — Tue, 08 Jul 2008 13:18:07 GMT

IMO- the only downside of offering a PFD is when you can't pay if they accept. If inside of SOL it can wake a sleeping giant.

A few years ago- I had my cell with my local phone company and they had a "billing mistake" and charge me $18,000 for my cell bill and AUTO debited from my checking account. They reversed the debit quick- but the next month charged me interest on the $18K -

This was never completely resolved- I closed my account

Re: Downside of Pay for Delete?

llecs — Tue, 08 Jul 2008 15:18:05 GMT

Timothy wrote:
I had my cell with my local phone company and they had a "billing mistake" and charge me $18,000 for my cell bill and AUTO debited from my checking account.

Re: Downside of Pay for Delete?

llecs — Tue, 08 Jul 2008 15:32:49 GMT

newlycheap wrote:
Hello Everyone, I have a tradeline from a collections company reporting a write-off, bad debt. Several years ago, I received an enormously high cell phone bill from Verizon (my teenager's phone!) It went to collections & I paid what I thought I owed. Anyway, now there is this trade line that I want to get rid of.

I will pay the amount they say I owe. Though morally I think it is wrong - what can you do, they have you over a barrel. I want this off.

My question is - is there a downside to a pay-for delete? I do not want to make this situation worse. Any advise would be very much appreciated. Thank you & God bless.

Downside to PFDing a CA? First, you should DV them. Even if you agree with the balance due, DVing creates a paper trail by which to base you PFD off of.

One downside is, as Timothy mentioned, that the CA could wake up and resume collection activities, including being sued if within SOL. If they are already chasing after you then that is not too much of a concern (because they are already doing that). Also, if the CA is reporting to one CRA and not the others, then they could add onto the other CRAs. I recently sent a PFD to an OC and they rejected it and changed the DOFD on me to the correct date, but it was a newer date unfortunately. Other than these, PFDing is relatively safe. But DV first.

Question, is Verizon Wireless reporting? If so, how does it read? Who did they pass the debt to? I'm dealing with a Verizon Wireless CO and sent dozens and dozens of PFDs to them without any luck. They told me that they would delete upon selling the debt to the 4th CA. They said that they will send 3 CAs after me and that none of them are contractually prohibited from reporting, but once they sell it, then the 4th CA will report. I'm on CA #3. If I pay Verizon Wireless without a PFD, then they insist that they will continue to report for the full 7 yrs. I'd rather take my chances with the CA (assuming it isn't like LVNV or AFNI or the like).

Re: Downside of Pay for Delete?

Anonymous — Wed, 09 Jul 2008 11:24:12 GMT

I may be wrong but pretty sure I read on these forums that cell phones fall under federal SOL which is two years.

Re: Downside of Pay for Delete?

RobertEG — Thu, 10 Jul 2008 02:02:51 GMT

If they delete, you will lose the entire age of the account in your length of credit history.

Re: Downside of Pay for Delete?

fused — Thu, 10 Jul 2008 02:07:09 GMT

Is this debt reporting as a derog trade line or collection...there is a big difference when a PFD removes one of these.

Re: Downside of Pay for Delete?

Anonymous — Thu, 10 Jul 2008 19:02:44 GMT

Thank you for your responses. Here is a little bit more about the situation & answers to your questions.

1. Is Verizon reporting? If so, how does it read? Who did they pass the debt to?

Equifax: Verizon is listed as the account & no contact information is provided.

Experian: Verizon Wireless is listed as the account & no contact information is provided.

TransUnion: Verizon Wireless Mid Atl as the account & the contact information as National Recovery, P.O. Box 1850, Folsom, CA 95630 Phone #800-852-1922.

2. Is this debt reporting as a derog trade line or collection….there is a big difference when a PFD removes one of these.

It is being reported as a derog trade line. Do you mean there will be less positive impact on my score in this case as opposed to a collection account? (Also, please see my other post regarding a collections account I do have.)

3. Little more information:

On all the reports these are the dates listed: "Status as of: May, 2005" "Date opened: Jun, 2003" “Date of last activity” is different on each report – April 2004, November 2004 & March 2005" "Date of last payment is reported on the Experian Report as March 2005" "Date closed is reported on the TransUnion Report as November 2004."

Question regarding these dates: when is the Date of First Deliquency & is that the date the statue of limitations runs from?

Thanks for all your help. My sincere best to all of you!

Re: Downside of Pay for Delete?

fused — Thu, 10 Jul 2008 19:10:49 GMT

Since this item is reporting as a derog trade line, if it is your oldest account and it is removed, your credit history length will be shortened. This will cost you points. Call the CRAs and found out when the DOFD and fall-off dates are. Once we know these, then we can give advice on what to do.

Re: Downside of Pay for Delete?

Anonymous — Thu, 10 Jul 2008 19:40:50 GMT

fused - thanks for your speeeedy response!

The length of my credit history is not a problem (I'm an old broad & have a 26 year credit history - thanks for reminding me!) I need to get my credit score up & have been having success following some of the advice I have read here. Two negative trade lines were removed using good will letters. And I anticipate being able to bring it up even more as I continue to follow the excellent advice I am receiving here. Keep up the good work!

I believe, after looking a little closer at this report that the date of first delinquency on this particular account was November 2004.

Any further guidance is appreciated.

Re: Downside of Pay for Delete?

llecs — Thu, 10 Jul 2008 19:56:44 GMT

newlycheap wrote:
Thank you for your responses. Here is a little bit more about the situation & answers to your questions.
1. Is Verizon reporting? If so, how does it read? Who did they pass the debt to?
Equifax: Verizon is listed as the account & no contact information is provided.
Experian: Verizon Wireless is listed as the account & no contact information is provided.
TransUnion: Verizon Wireless Mid Atl as the account & the contact information as National Recovery, P.O. Box 1850, Folsom, CA 95630   Phone #800-852-1922.
2. Is this debt reporting as a derog trade line or collection….there is a big difference when a PFD removes one of these.
            It is being reported as a derog trade line. Do you mean there will be less positive impact on my score in this case as opposed to a collection account? (Also, please see my other post regarding a collections account I do have.)
3. Little more information:
On all the reports these are the dates listed: "Status as of: May, 2005"   "Date opened:           Jun, 2003"   “Date of last activity” is different on each report – April 2004, November 2004 & March 2005" "Date of last payment is reported on the Experian Report as March 2005" "Date closed is reported on the TransUnion Report as November 2004."
Question regarding these dates: when is the Date of First Deliquency & is that the date the statue of limitations runs from?
Thanks for all your help. My sincere best to all of you!

I take it from the post that there is no CA reporting on behalf of Verizon Wireless but rather this is a CO.

You can't send a DV. I had thought that this was a collection. You can only DV a CA not an OC.

Based on your overall history, I think you'll be OK if it were removed. 26 yrs vs. a few short years. It would depend on your avg. history. If your avg. history (usually listed on pg 2 or 3 of TU and EQ FICO reports) is older than this Verizon Wireless account, then removing Verizon Wireless will likely help your history, beside the fact you will have killed off a major baddie. Your score will increase.

The tough part is removing Verizon Wireless. From personal experience, they very rarely accept PFDs. It would be a large long shot. Moreover, based on VZW's SOP, if they sell the account they will delete it off your reports., however a new CA will take over and that could tank your scores. Be cautious with them. I've offered many PFDs without any luck. I may have to pay them without a PFD.

Re: Downside of Pay for Delete?

Anonymous — Thu, 10 Jul 2008 20:19:24 GMT

Though not listed as a collections, this baddie was reported by a collections agency, namely National Recovery - does that make a difference?

Re: Downside of Pay for Delete?

llecs — Thu, 10 Jul 2008 20:24:35 GMT

newlycheap wrote:
Though not listed as a collections, this baddie was reported by a collections agency, namely National Recovery - does that make a difference?

National Recovery in Folsom, CA isn't a CA. It is a Verizon Wireless' internal office that handles baddies. I call them weekly and have gotten to know them quite well.

Re: Downside of Pay for Delete?

llecs — Thu, 10 Jul 2008 20:27:54 GMT

And to add, on your CRs, especially via this site, the way it is displayed makes it appear as if it was another company. I too was unclear on this. I even googled the address and phone number and found a few sites that even mention that this is a CA. I checked and rechecked and confirmed that it isn't.

Re: Downside of Pay for Delete?

Anonymous — Thu, 10 Jul 2008 20:30:29 GMT

Ohhhh - OK thanks. That's good to know. I remember my conversation with them from 3 years ago or so very clearly. Let's just say - they were not very helpful or accomodating. I guess they got the last laugh on me!

Who knows may-be this will make an activist out of me.

Did anyone hear the woman on National Public Radio on the Fresh Air Show last week? She is an attorney - lobbying for rights for consumers & for the right of "ownership" to one's own information & credit history.