topic Re: PFD response - what does this mean ? in Rebuilding Your Credit

PFD response - what does this mean ?

Anonymous — Tue, 09 Apr 2013 03:30:55 GMT

What does this mean? I mailed out a PFD to CA Professional Finance (original creditor Atmos) last week thanks to this forum. Received this from them (on their letterhead):

"We are in receipt of your offer to pay in full the above-referenced account on the condition that it is removed from your credit report. Professional Finance Company will correct any inaccurately reported information, but we can not accept payment subject to conditions. Upon receipt and clearance of your payment in the amount of $51.00, Professional Finance Company will forward a report to all credit reporting agencies reporting the account as a 'paid, closed collection item'."

I'm understanding that they will submit that it's been paid but that's not what I want. So now, should I pay? and then what could I do to get it removed (GW)? Should I send out another letter reiterating 'removal'? Please help, what is my next move? I want this removed.

Re: PFD response - what does this mean ?

DaBears — Tue, 09 Apr 2013 03:36:01 GMT

They understood your PFD letter. They just won't remove it once paid in full. You can try a GW afterwards but I highly doubt it will do any good.

Re: PFD response - what does this mean ?

Anonymous — Tue, 09 Apr 2013 18:45:29 GMT

Would you suggest paying the CA & agreeing to the 'paid, closed collection item'?

Is it better to show a 'paid, closed collection item' rather than a still owed/derogatory status on a report? By paying would this have a positive/negative/neutral impact on cr?

Who then would I GW (OC or CA) if I pay it?

Would GW calling and speaking to Supervisor and asking for a PFD help? Or is the rule of thumb not to contact CA only OC?

Any and all help would be greatly appreciated! Thanks

Re: PFD response - what does this mean ?

Anonymous — Tue, 09 Apr 2013 18:50:28 GMT

@Anonymous wrote:
Would you suggest paying the CA & agreeing to the 'paid, closed collection item'?
Is it better to show a 'paid, closed collection item' rather than a still owed/derogatory status on a report? By paying would this have a positive/negative/neutral impact on cr?
Who then would I GW (OC or CA) if I pay it?
Would GW calling and speaking to Supervisor and asking for a PFD help? Or is the rule of thumb not to contact CA only OC?

Any and all help would be greatly appreciated! Thanks

Since it is the debt you owe, paying would be the right thing. However, once you pay, you lose most of the leverage in getting it deleted. Purely from FICO score perspective a paid collection will not look any better than unpaid one. I think it comes down to a moral decision.

Re: PFD response - what does this mean ?

Anonymous — Tue, 09 Apr 2013 21:34:51 GMT

A collection account whether paid or not has the same negative impact on your credit report. There is no benefit to paying the account if they won't PFD. Given its only $51 it's unlikely they will sue you so the choice is yours, personally I'd send them a PFD letter every 6 months, they may begin to realize they are better off agreeing to your terms than going through collection efforts on such a small amount. Personally, I've had much better success with PFD than GW with collection accounts. I 've been sending GW letters to a collection agency that had a medical collection of $50 from 2008, I paid in full in 2009 and they simply won't budge on removing it. It's so frustrating!!!

Re: PFD response - what does this mean ?

RobertEG — Tue, 09 Apr 2013 21:58:07 GMT

There is still a HUGE benefit to paying, even though they wont agree to CR deltion, and thus wont result in an immediate FICO score boost.

It is more than simply a moral issue of obligation. Future creditor determinations are not based solely upon a three-digit FICO score.

The presence of unpaid debt alone can kill any approval of new credit, chances at a CLI, etc.

CR exclusion, if and when it occurs, does not alter the fact of still having unpaid, delinquent debt. While CR exclusion shields its presence merely by a pull of the consumer's credit report, it is still information that requires disclosure if asked.

If still within SOL, it would also remove any chance of legal action.

Re: PFD response - what does this mean ?

750orbust — Wed, 10 Apr 2013 02:17:31 GMT

I had a collection from this same CA and the same OC. I contacted the original creditor and found out that they in fact owed me a refund. I would call Atmos and offer to PIF and ask if they would recall the collection from the CA.

Do you still use Atmos? Chances are if you do, they might of screwed up like they did with me and perhaps they owe you a refund to?????? It's worth a shot to check into it. What they did with me is, I never paid my final bill but I had actually been required to pay a $250 deposit before starting service with them. They allowed they account to go delinquent and put it into collections and never bothered to apply my deposit to the final payment.

Re: PFD response - what does this mean ?

blk8 — Wed, 10 Apr 2013 02:38:09 GMT

Save your money for the other collection agencies that are willing to accept PFD.

Re: PFD response - what does this mean ?

Anonymous — Wed, 10 Apr 2013 13:12:04 GMT

No longer have Atmos. Thank you 750orbust for this information, I will be calling Atmos today and offer a PIF & it’s very likely I may have a refund too. Same scenario as yours, paid a deposit before starting service and assumed the last bill would be deducted from there. Never received a refund and then come to find this on the CR. They obviously let the account go delinquent, into collections and just like you never bothered to apply my deposit to the final payment.

Thank you everyone !

Re: PFD response - what does this mean ?

750orbust — Wed, 10 Apr 2013 13:29:31 GMT

Let us know how it goes

Re: PFD response - what does this mean ?

Anonymous — Wed, 10 Apr 2013 13:29:50 GMT

Let us know what happens.