Drawbacks on PFDs that settle for less than owed?

[tbucket101]

I was reading up on some of the examples of PFD letters and noticed a respected contributor stating......"beware of the ramifications of settling an account for less than owed" by using a PFD.....any ideas on what those may be?

[Anonymous]

I am not sure what was meant by that.  If you settle, the account is paid.  And while settling would be a negative factor on your score, if the account was deleted, it will make no difference.

The only thing that comes to mind is the wording of the PFD settlement, which would hold true for any settlement.  That is making sure the creditor/collectors acknowledge that the settlement terms will satisfy the debt and hold you to no obligations of further collections.

[tbucket101]

Thats kinda what I was thinking but wanted some imput from the "pros"......there is a good PFD sample I found on here on a sticky, its kinda abrasive but blunt and straight to the point so hoping it will work......thanks G-56 for the input as always!

[Anonymous]

No, don't use that PFD example.  It is too abrasive and demanding.  A PFD is a type of GW so it needs to be somewhat nice.

Don't give them time limits or tell them who the can or cannot discuss the settlement with. 

Basically tell them while you neither acknowledge nor dispute the debt, in the spirit of compromise, you are willing to pay __________ to have it deleted from all 3 CRs.  Something along those lines.  Nice and to the point.

[Shogun]

A PFD is a type of GW so you wouldn't want to be abrasive with them.  Be nice polite and to the point.