Downside of Pay for Delete?

[Anonymous]

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.

[Anonymous]

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

[llecs]

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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. 

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[llecs]

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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.

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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).

[Anonymous]

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

[RobertEG]

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

[fused]

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

[Anonymous]

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!

[fused]

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.

[Anonymous]

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.