Collection Agency question. Told paying will stop reporting

[Anonymous]

I called Ltd Financial services about an account I want to settle and have deleted. I asked if they will delete it or request that the credit bureaus delete the collection after I pay the settlement amount. I was told that once it's paid "they will stop reporting it and it should fall off." Is this the same as them removing it from the credit bureaus? I want the collection removed to improve my score. But if they stop reporting and it doesn't come off will this still help too?

[gdale6]

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@Anonymous wrote:
I called Ltd Financial services about an account I want to settle and have deleted. I asked if they will delete it or request that the credit bureaus delete the collection after I pay the settlement amount. I was told that once it's paid "they will stop reporting it and it should fall off." Is this the same as them removing it from the credit bureaus? I want the collection removed to improve my score. But if they stop reporting and it doesn't come off will this still help too?

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No its not the same as a PFD, they have an obligation to report that its paid off and then it stops its monthly reporting and begins to age back in time in Ficos eyes, it then will drop typically at the 7 year mark from the accounts DoFD. I would formally request the PFD from them. Welcome to the board

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/td-p/2031275

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

[Mortgage-Specialist]

It's not the same. Speak w someone else there to get a deletion letter. This will remove it from your bureau as if it never existed which is by far the best option for improving your credit.

Sometimes you need to play hardball and let them know hat you're only willing to pay it off it they delete it.

I doubt you will see any score improvement if you pay a collection to a $0 balance without it being deleted. If you're planning on an FHA loan, you wont be required to pay it off collections.

[Anonymous]

Thank you both so much for the reply and information. I figured there might be a difference between stopping reporting and deleting the item.