topic Re: Should I settle with Collections??? in Rebuilding Your Credit

Should I settle with Collections???

Anonymous — Tue, 06 May 2008 17:56:51 GMT

Need to know if settling my medical collections on my CA will have a negative affect?? Also define: DV, SOL and PDF?

Re: Should I settle with Collections???

Anonymous — Tue, 06 May 2008 18:24:38 GMT

Definitely PFD...but DV first...some say not to DV within SOL...PIF...Settled...none of that has a different score impact...only deleting you might see a score increase...although...try to get a PFD response in writing...

Re: Should I settle with Collections???

Anonymous — Tue, 06 May 2008 18:39:14 GMT

Here's the skinny on paying collections:

First, the status of a collection doesn't matter to FICO. Pay it, settle it, flip 'em the bird and don't pay a dime--your score won't change. If you want to help your score, it has to be REMOVED entirely.

Second, the status does matter somewhat to human beings reviewing your credit report. A paid charge-off does look a little better than settled, which in turn is slightly above open and unpaid. I have also heard anecdotal evidence that some automated reviews look at status in addition to score.

Third, trying to DV or PFD a collection within SOL can result in a lawsuit. Doesn't happen often, but be sure you have the money to PIF before tickling that sleeping dragon.

Re: Should I settle with Collections???

Anonymous — Tue, 06 May 2008 20:07:21 GMT

The responsenses are helpful though i would like to know what the acronyms SOL, DV, PFD and PIF mean?

Re: Should I settle with Collections???

Anonymous — Tue, 06 May 2008 20:15:20 GMT

SOL - Statue of Limitation

DV - Debt Validation

PFD - Pay for Delete

PIF - Paid in Full

There is a list of commonly used abbreviations at the beginning of the forum.

Re: Should I settle with Collections???

Anonymous — Tue, 06 May 2008 20:16:33 GMT

Thank you Kennedyr!

Re: Should I settle with Collections???

Anonymous — Tue, 06 May 2008 20:21:34 GMT

now to PFD does it require to pay total balance or agreed amount?

Re: Should I settle with Collections???

Anonymous — Sat, 17 May 2008 01:28:17 GMT

i dont mean to sound stupid but how do i PFD

Re: Should I settle with Collections???

llecs — Sat, 17 May 2008 02:10:20 GMT

There are PFD examples in here. Search for "PFD example" and you'll probably find one quickly. You can PIF or offer a settlement for less than full. I recommend PIF because it will sweeten the deal for the OC or CA to accept. However, creditors don't have to respond or accept a PFD.