My husband and I are in the same boat. From what I understand, Pinnacle is known for this type of behavior. Typically the debt is close to the SOL, they reopen the debt in hopes of getting people to do exactly what you're thinking: settle with them, PFD... They buy the debt for pennies on the dollar from the companies that have already taken the loss! Then they harass you, or damage your score, so that you'll just decide to pay, instead of fighting it. They end up making a nice little profit... Fighting it takes a long time, and typically they expect this to deter you, so you'll cave! And pay. Which is exactly what it's done to us. We're in the home buying process as well, and they reopened a debt a month before we were set to close- Pinnacle has made us lose a home because of a Verizon wireless bill from 2006. I suppose it's a lesson learned, always pay termination fees....
The first step is the VR from Pinnacle... A website that I've found with all the paperwork is here, http://www.bills.com/debt-diy/ and it takes you through the process. Whatever paperwork you'll need is there, but I wouldn't suggest contacting BBB until you have all your ducks in a row. Many forms need to be sent to Pinnacle before BBB can consider your case worthwhile. If all paperwork is ignored, or you're given insufficient responses from Pinnacle, then you can contact BBB, they'll demand that Pinnacle respond with a settlement and/or deletion from your CR. They actually aren't BBB Accredited, but they'll respond to them. Or you can go directly to the credit bureaus, but again, all your ducks needs to be in a row.
We've decided to settle for PFD. Unfortunately it's the fastest way we see to get something off your credit report.... Even then, Pinnacle is known for saying they'll delete it, but won't. They accept your payment gratefully, and months later people are still trying to fight them for a clear CR.... We're not giving anyone a dime until we have a signed PFD contract with them, which is what I would suggest you do as well... I am, by no means, an expert. I have been looking into this for the past week since we lost our house, and this is the information I've gathered. I hope I answered some questions, sorry if I didn't, but I know I feel better knowing that others are having the same issues. Good luck!
