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Collections

dana
New Visitor

Collections

Paying off collections on your credit report, will that help raise your credit score?
Message 1 of 8
7 REPLIES 7
llecs
Moderator Emeritus

Re: Collections

No. The collection has to be wiped from your report and that usually doesn't happen by paying it.
Message 2 of 8
HouseHunter
Frequent Contributor

Re: Collections

If you send a PFD (pay for delete) letter and the CA (collection agency) agrees and responds back with a letter outlining the terms you asked for in your letter, then you would be pay the settlement amount with a certified check and they would delete it from your credit report(s) if they held up to their end of the bargain.  If they didn't automatically delete it, you could dispute it with the CRA's (Credit reporting agencies) and per the agreement, they would not be allowed to verify the debt which should mean that it would drop from your credit report(s).
 
Do a search on these forums for PFD examples.  When I frequented the boards before, I remember seeing some really good examples of these and actually used some when helping repair my Mom's credit.
Message 3 of 8
Bklyn395
New Contributor

Re: Collections

I have a question along these lines... I have 3 collection accounts and I have made payments on each one already, can I still send a PFD for the final payment?  All are scheduled to be paid off with a final check on 5/15 and the amounts are fairly small ($88, $94, $106) so I'm not sure if it gives me any leverage.  Most of the PFD letters I have seen look like you should have sent them before making any payments, but unfortunately I didn't know anything of PFDs when I started paying.  Any suggestion on possibilities for getting the info deleted?  I'd rather have them paid in full because they ARE my debts, but bottom line is what's best for my scores is what I'm interested in.   
 
I also have a Cap One account also in collections (I know, I'm a mess) that I have made one payment on, but now I'm thinking since I made the payment I acknowledged the debt and lost any leverage.  The amount on that is $769, so if they demanded payment in full for deletion I can cover it.  Does one payment also lose me the advantage, or should I attempt the PFD as though I haven't sent a payment?
 
Thanks for any feedback!
Message 4 of 8
freezingfrog
New Visitor

Re: Question on Collections

I have a $20 collections for Time Warner Cable a $29 collections for Verizon (which I paid, but can't find my carbon copy of my check to prove it), a $56 collection for a medical thing and a $188 for a medical thing. The Time Warner and $188 medical thing is from 2003 and the $29 is from 2005 and the $56 is more recent. Should I pay these off or will they wake up the seven years?? Thank you!
Message 5 of 8
Moderator Emeritus

Re: Collections



ekb117 wrote:
I have a question along these lines... I have 3 collection accounts and I have made payments on each one already, can I still send a PFD for the final payment?  All are scheduled to be paid off with a final check on 5/15 and the amounts are fairly small ($88, $94, $106) so I'm not sure if it gives me any leverage.  Most of the PFD letters I have seen look like you should have sent them before making any payments, but unfortunately I didn't know anything of PFDs when I started paying.  Any suggestion on possibilities for getting the info deleted?  I'd rather have them paid in full because they ARE my debts, but bottom line is what's best for my scores is what I'm interested in.   
 
You might modify the PFD letter and try. If it doesn't work, then send GW letter after they are paid.
 
I also have a Cap One account also in collections (I know, I'm a mess) that I have made one payment on, but now I'm thinking since I made the payment I acknowledged the debt and lost any leverage.  The amount on that is $769, so if they demanded payment in full for deletion I can cover it.  Does one payment also lose me the advantage, or should I attempt the PFD as though I haven't sent a payment?
 
I don't know if making payment acknowledges the debt or not. But I'd still send PFD and see what they say. Have you DV'd?
 
Thanks for any feedback!



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Message 6 of 8
Moderator Emeritus

Re: Question on Collections

Payment only resets LEGAL SOL, not REPORTING SOL or CRTP.
 
Paying them will not restart the 7 year time period that they can be reported and will still be removed when the 7 years is up.
 
Have you DV'd? Tried for a PFD?

freezingfrog wrote:
I have a $20 collections for Time Warner Cable a $29 collections for Verizon (which I paid, but can't find my carbon copy of my check to prove it), a $56 collection for a medical thing and a $188 for a medical thing. The Time Warner and $188 medical thing is from 2003 and the $29 is from 2005 and the $56 is more recent. Should I pay these off or will they wake up the seven years?? Thank you!


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Message 7 of 8
Bklyn395
New Contributor

Re: Collections

Thanks so much for your response.  I think I will go ahead and send the final checks with a "By depositing this check you are agreeing to these terms" type of letter.  I am afraid to wait past the 15th to get the check in because I don't want them to be able to put another KD on my account for May 08.  If they deposit the checks without deleting, then I'll send the GW letters.  
 
On the other Capital One account, it is a CO and I have not DV'd it.  I got the collection notice and sent a check.  Cap1 is reporting to the CRAs, but the payments are going to the Associated Recovery Systems.  I guess I should DV and then offer the PFD?  Cap1 is reporting a KD every month even though ARS is cashing my checks and the balance is lowering on my credit report.   
 
I have another older Cap One (Legally paid in full for less than the full balance) that is scheduled to be deleted in June 08, so I was thinking of making payments and laying low on this account until the other falls off so that there was no confusion.
 
Thanks again!      
Message 8 of 8
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