Collection agreed on 'pay for delete' then no action so far

[Anonymous]

Hi dear myFico users,

This forum was really helpful and I recently succeeded in getting written agreement for

'Pay for Delete' from my baddie collection agency. However after a month or so, there was no update in my credit file, so I guess they are too lazy to honor the agreement to remove the items yet. In this case, what should I do for them to remove? Write another letter to collection threatening legal action against them or send a letter to CRAs with copy of Pay for delete agreement asking removal of bad item?

Thanks for your help!

[Anonymous]

what did THEY agreed to?

[Anonymous]

They agreed to remove items from three credit bureaus upon receipt of full payment, and I sent money order. This is the actuall letter they sent to me after my pay for delete offer

"As per our agreement, you will pay the account in full and the account is completely settled.

Also all three credit reporting agencies will be advised to remove the relevant records from files. "

[Geordi]

---

@Anonymous wrote:

They agreed to remove items from three credit bureaus upon receipt of full payment, and I sent money order. This is the actuall letter they sent to me after my pay for delete offer

"As per our agreement, you will pay the account in full and the account is completely settled.

Also all three credit reporting agencies will be advised to remove the relevant records from files. "

---

I am no expert but have you considered disputing with the CRAs and including a copy of the letter the CA provided?

GL

[Anonymous]

I would not dispute with CRAs - that's always the last resort, and can lead to protracted reporting.

Unless pressed for time (applying right now for a loan) I would wait up to 45 days from the date they cashed the payment - if not gone by then, send the CA a notice of Breach of Contract and give them 7 days from receipt to remedy or else (get a copy of an ITS letter on this site and adjust it).

[Anonymous]

Today I found they merely updated it as 'PAID'. They didn't honor the agreement. I'm going to send 'Notice of Breach of Agreement' to them

[Junejer]

For all who will read this now and in the future, this is precisely why we state never talk to a CA over the phone, and to always get everything in writing. Good for you junyea. You did it right.

[Anonymous]

there are great examples on this site, and if necessary, this is what I used recently (amended to protect the innocents). Should be adapted to reflect a particular situation.

August 30, 2008

Evil CA or OC
Hell's Way
Burning Place, HL, 66666

Re: Settlement of account #1234567890

N O T I C E    O F    B R E A C H   O F   C O N T R A C T

To Whom It May Concern:

On July 16, 2008, Evil CA, LLC agreed by letter to remove all references to the above account from my credit reports upon payment of $666.66.

Evil CA, LLC has received payment in certified funds per this agreement on August 4, 2008, and cashed such payment on August 11, 2008.

25 (TWENTY-FIVE) days have passed since your receipt of certified funds and the account #1234567890 HAS NOT been deleted from my credit files at the three major Credit Reporting Agencies (TransUnion, Equifax and Experian), and I have not received any notices stating that this alleged debt has been satisfied.

Furthermore, the three Credit Reporting bureaus (TransUnion, Equifax and Experian) are all stating that recent reporting activity has been performed on this account, as recently as August 25, 2008.

Evil CA, LLC has not performed its obligations and further reporting of this account appears in violation of the Fair Credit Reporting Act and Fair Debt Collection Practices Act.

This letter is formal notice of Breach of Contract.

EVIL CA, LLC has 5 (five) days from the receipt of this letter to cure its breach by fulfilling its obligations, summarized as follows for your convenience:

Evil CA,  LLC must delete ALL information regarding account #1234567890 and the Evil CA, LLC  collection account from my files at the three major credit reporting agencies (Equifax, Experian and TransUnion) and will not discuss the terms of this settlement with anyone. If contacted by any third party, including credit-reporting agencies, Evil CA,  LLC will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

After this term, I shall file suit against you without any further notice. At that time, you will also be responsible for any attorneys fees incurred.

I shall also immediately file complaints with the BBB, the AG offices in my and your home States, and the FTC. Should any further violations of the FCRA and FDCPA occur in relation to the handling of this account after receipt of this letter, I will not hesitate to pursue all legal remedies available to me.

Sincerely,
Your Name
Your Address
Your City

[Anonymous]

$666

[RobertEG]

I see no basis upon which the CRA will delete without first receiving a request directly from the CA.  The CRA is not an arbitor of private party legal agreements.  It is the CA who made the agreement, and thus it is the CA obligation to fulfill it.

Their letter to you is a legal "meeting of the minds," with tangible acceptance of benefit by both sides.  They agreed to take your money in exchange for their promise to report an update in your credit file.  It is a legal contract, for which the CRA is not the enforcer.

I would simply send a letter to the CA, asking them to fullfil their terms of the contract with the same haste that you have done so. 

But, unless your "contract" with them included specific time limits for each of you to fulfill its terms, I would not, at this point, accuse them of "breach of contract."    Just an unreasonable delay in fulfilling its terms.

Message Edited by RobertEG on 10-27-2008 09:55 PM