topic Re: PFD agreement but then... in Rebuilding Your Credit

PFD agreement but then...

Anonymous — Thu, 16 Jan 2020 16:19:07 GMT

I received a PFD agreement in writing from a CA. I agreed to pay 60% and the agreed to delete upon payment. Today I got an alert that my score dropped 26 points. When I looked, it’s because essentially this account updated to settled for less. I called the CA and the explanation makes no sense to me. Maybe someone can help clarify.....
The rep said that she sees in my file that they agreed to delete but that it will take 30-45 days for the CRA to update. I said...but they DID update as settled for less. She repeated...takes 30-45 days.
Why would the account update and then supposedly later be deleted? Makes no sense to me. I kept saying it DID UPDATE but should have been deleted. Was getting nowhere. Can anyone explain this to me?

Re: PFD agreement but then...

Anonymous — Thu, 16 Jan 2020 19:47:13 GMT

The CA is required to promptly update changes in the account status. Your settlement agreement falls under that. You lost points because it was “refreshed” with a new update. It’s temporary though - when the account is removed, you’ll bounce back.

Re: PFD agreement but then...

outofcredit — Thu, 16 Jan 2020 19:48:29 GMT

@Anonymous wrote:
I received a PFD agreement in writing from a CA. I agreed to pay 60% and the agreed to delete upon payment. Today I got an alert that my score dropped 26 points. When I looked, it’s because essentially this account updated to settled for less. I called the CA and the explanation makes no sense to me. Maybe someone can help clarify.....
The rep said that she sees in my file that they agreed to delete but that it will take 30-45 days for the CRA to update. I said...but they DID update as settled for less. She repeated...takes 30-45 days.
Why would the account update and then supposedly later be deleted? Makes no sense to me. I kept saying it DID UPDATE but should have been deleted. Was getting nowhere. Can anyone explain this to me?

IME this is normal. CA will usually update the status first to show the account is "settled" or paid in full and has a zero balance. This normally occurs within days of your payment happening. Deletion in my experience happens after that within 30 days of the account showing a zero balance due. Give it the 30-45 days and if it isn't deleted then follow up. I've never had a collection account instantly deleted as soon as payment was made, it has always updated to zero, then deleted the next cycle. YEMV.

Re: PFD agreement but then...

dragontears — Thu, 16 Jan 2020 19:49:09 GMT

While it doesn't make sense to you (or me), most of the time when you get a PFD with a collection agency first they update with the payment then within 30 days they delete it.
My advice is to be patient and give it more time

Re: PFD agreement but then...

Anonymous — Thu, 16 Jan 2020 20:28:17 GMT

Thank you all for the replies! The explanations are very helpful and saved me from a slight meltdown! I’ll be patient and wait for it to delete!