Collections/PFD Question

[SoccerFan]

Before I found this great source of information, I aggreed with the CA to payoff $650 in 3 payments. The 1st payment was just made today. Is it to late for a PFD? What's the best course of action at this time?  

[nothingman02]

Did you sign an agreement with the CA for this payment plan to settle the debt?

[Anonymous]

Straying from an agreed upon plan is not going to earn you any brownie points with the CA.

Can you pay the rest of the balance in full instead of the two more payments?

If so, fire off a PFD stating you'll make a lump sum payment for the rest by XX/XX/XXXX if they will agree to delete the entire account.

[SoccerFan]

I did not sign any agreement, it was a verbal agreement but we did setup electronic payment via my checking account. I do have the funds to payoff the balance, should I try PFD? Thanks everyone.

[Anonymous]

I would fax them the PFD letter rather then mailing it. I am not sure how often you have to make the payment but if you hold off on paying the rest of the balance until you get a PFD decision back then you might be hit with additional penalties. I would PFD them today if you have a fax machine at your convinience or since you already have an agreement I would even trying calling them. The worst they can do is say no and they wont further harass you since you already have a payment agreement. Make sure that if you do respond to the PFD that it will clearly state that the account will be DELETED FROM ALL THREE BUREAUS. I was dealing with one of my collection agencies over the phone and they "agreed" to do a PFD so I ask them to fax me a copy, I received a letter with a very vague description, somethink like " we will update your account", what this realyl translates to is that they will update it to being paid, not actually removing it. Make sure you feel comfortable with their agreement before sending any money. You can be a little pushy and tell them that this will all be settled today if they just PFD. If they know that money will be coming their way then they are sometimes more flexible. I dealt with another collection that I just paid in full and then disputed it directly with credit bureaus, since the collection agency was too lazy to verify, the credit bureaus deleted my collection, I honestly dont understand the benefit of debt collectors playing this game rather then deleting accounts, I am sure it would bring in more money this way.

[SoccerFan]

I just noticied on my CR that the CA is not reporting this account. Will they report down the line?

[SoccerFan]

Just got off the phone with CA, they indicated they are not reporting to CB or intend to. Which is partially true, not showing up on CR. The CA said that the CCC will report to CB. When account has been paid for, the CA will notifiy CCC that account has been paid who is currently reporting "Charge Off". 

Do I just pay off quickly and GW the CCC?  Or should I insist on PFD from the CA even if they claim they do not intend to report?

[nothingman02]

I  thought about the same thing, about  why the CAs cant just delete the negatives and conviniently accept the PFD.

Heres my take on this;

The OCs suffered because of the derogs and negatives. They could very well accept the PFDs directly from the consumers. But I think they wont do that cause

1) Its usully a while before the consumers start to correct their accounts and start offering PFDs.

2) They obviously dont want the consumers who have messed up their accounts to immediately return back to them applying for their CCs with their slates clean. 

Besides they dont have the  time to collect so they let the CAs have it. And depending upon the deal they get, they let the CAs know if they could accepts PFDs or not.So on and so forth.

Even, if the CAs could accept PFDs, the OCs would, I'd imagine prefer those CAs who have a reputation of obtaining payments without deletions. Hence the CAs typically refuse PFDs.

Message Edited by nothingman02 on 03-27-2009 01:05 PM

[Anonymous]

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SoccerFan wrote:

Just got off the phone with CA, they indicated they are not reporting to CB or intend to. Which is partially true, not showing up on CR. The CA said that the CCC will report to CB. When account has been paid for, the CA will notifiy CCC that account has been paid who is currently reporting "Charge Off". 

Do I just pay off quickly and GW the CCC?  Or should I insist on PFD from the CA even if they claim they do not intend to report?

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PFD would not be appropriate as it isn't reporting, there isn't anything to delete.

I would ask for something in writing stating that they won't report this debt on your CR.

As for the OC, when was the account opened? Do you have other accounts opened this long ago?

Removing it may do more harm than good.

[SoccerFan]

I've had this Chase acct. since 5/02, along with 2 other CC's (good standing) opened around the same time. I will contact the CA to see if they will put in writing something stating that they will not report to CB.

Should I GW Chase after CA has been satisfied? Or should other actions be taken. 

Again, thanks everyone for the great advice!!