Goodwill question?

[Anonymous]

Ok I've been reading on the goodwill. Ready to make my letter. One thing I'm a not confused on though. Do I send the letter to the bank that I was late on? Or to the collection agency I ended up paying in full in the long run? Much appreciated. 

[Gidgetmom]

I will start off with YMMV....I had tried several times to get PFD for some medical collections last year.  The CA refused to PFD.  After I paid them off, I waited a month or two, then wrote Goodwill letters to the CA.  When my reports updated that month they were gone.  You have nothing to lose by requesting it.  Worst they can do is say no.  Wait another month or two and ask again!

[Anonymous]

Thanks but what is YMMV? And also what if I don't know the account number I an referring to? I see that most GW letters say to include the account number but its been over a year and I don't know how I could even find the account number. Also I owe this bank for overdraft on my checking account. Do you think that gives me leverage? If I tell them I will pay them for removing my lates. Which I will if they will. 

[RobertEG]

If the creditor or business has reported any derogs to the CRA, you can send them a good-will request for removal of their reporting.

If there is also a debt collector and they have reported a collection, you can send them a good-will request for removal of their reported collection.

A special type of good-will request is a request that also includes an offer to pay the debt in exchange for their agreement to delete their reporting.   It is an offer by the consumer that includes something of monetary value, and thus is a valid contract offer.

A normal good-will request is only an informal plea that they remove.

You can only pay once, so you would only offer a pay for deletion (PFD) to one or the other.

Consumers will usually consider a collection to be the more serious derog, and thus choose to send a PFD offer to the debt collector.

However, nothing precludes sending a PFD to the creditor that agrees to pay in exchange for the creditor deleting derogs that they have reported.  A PFD offer to a creditor would not place any deletion requirments on the debt collector, as the creditor can only agree to delete their own reporting.

[Anonymous]

Thanks Robert. The thing is I already paid the collection. Collection was never reported. So I cant PFD. BUT I do owe them for a separate checking acct overdraft from the same time and was wondering if I can Pay on that for the deletion of the lates on my credit card report. (Checking account isn't on my report).  I'm sure its never been tried so maybe I should just try goodwill first. Just thought it might be easier with some money leverage you know. 

[Gidgetmom]

YMMV = your miles may vary.  as RobertEG has weighed in on your dilemma, I will politely bow out.  He is very well informed on legal matters surrounding all things credit.

[Anonymous]

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@Anonymous wrote:

Thanks Robert. The thing is I already paid the collection. Collection was never reported. So I cant PFD. BUT I do owe them for a separate checking acct overdraft from the same time and was wondering if I can Pay on that for the deletion of the lates on my credit card report. (Checking account isn't on my report).  I'm sure its never been tried so maybe I should just try goodwill first. Just thought it might be easier with some money leverage you know. 

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Your checking account would likely be reported to Chex System (?) - anyway, it's a separate report from your credit report and probably would proclude you from opening any sort of bank or credit union account and I believe lenders pull your Chex System (?) report too when you apply for mortgages, car loans and personal loans depending upon the potential credit grantor.  IIRC, I had a bank debt on a closed account years and years ago and was unable to open another checking account until I paid the debt.  In my case, it was automatically deleted from my Chex System once paid (I'm just questioning if this is the correct company I remember the bank telling me had a "baddie" reporting).

Anyone, if I'm posting anything incorrect or now outdated, please correct me - this was a long, long time ago.

[Anonymous]

Wow. You are absolutely right. I just looked it up. See I learn something new on here every day. Wow. Good thing I havent tried to join NFCU yet. And here I sat thinking I never had to pay them back lol. Which I don't. It drops off in 5 years but I'd rather take care of it anyway for car loans etc. Like you said.