cancel
Showing results for 
Search instead for 
Did you mean: 

New here! Pay For Delete OR pay collections first then write GW letter?

tag
Anonymous
Not applicable

New here! Pay For Delete OR pay collections first then write GW letter?

I have about 5 collections on my account and have been browsing around here for some advice. Two of them are from 2015 and the rest are around 3 years old. I have seen a fair share of both PFD recommendations as well as GW lettersafter paying collections off in full.  I'm not sure which one would be best for my situation. My husband and I are trying to buy our first home and our timeline is about a year or so. Which would you guys advise? 

Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: New here! Pay For Delete OR pay collections first then write GW letter?

PFD is always preferable

 

but it depends on the CA, for instance I have PRA on my reports and they are basically impossible to PFD if their reporting is accurate, but they've been okay with GW if you are an easy customer, so I'm just going to PIF and then GW after.

 

Research the CA's on you reports and make an educated guess. 

Message 2 of 9
Anonymous
Not applicable

Re: New here! Pay For Delete OR pay collections first then write GW letter?

Thnks for answering!

 

That makes sense. I called two of the CA's already and asked if they would do PFD but they both said a quick no.  A law office I called even said it will fall off next year and to wait it off.  I'm just concerned that they will pass it off to another creditor and my SOL (7 years) starts again.

 

My CA's are ERC (Enhanced Recovery), CMRE Financial, GC Services, Baker Recovery Services, Credit One, a law office, Collection Consultants, Midland Funding.  Wow, I have 8, sorry for saying I had 5. Im in worse shape than I thought.

Message 3 of 9
RobertEG
Legendary Contributor

Re: New here! Pay For Delete OR pay collections first then write GW letter?

Some consumers will have a need to pay immediately in order to satisfy a requirment imposed by a lendor in order for approval of new credit, partcularly a mortgage.

Since PFDs are optional on the part of the debt collector or other owner, they may no time to wait for acceptance, and thus will pay and then seek a PFD.

 

If you have a year, attempt the PFD route first.

 

If the debt collector wont bite on a PFD offer, you could then contact the creditor, ir fhe creditor still owns the debt, and offer a payment directly to them if they will first termiate their assigned collection authority.  CRA policy requires a debt collector to delete their collection if their collection authoirty is teminated with the debt remaining unpaid.

 

Message 4 of 9
Anonymous
Not applicable

Re: New here! Pay For Delete OR pay collections first then write GW letter?

the account getting sold does not restart the SOL

 

there are very specific things that will restart the SOL, such as making a payment plan and then defaulting on the plan, and a couple of other things, but not the account being sold

 

You might still want to pay the debts, paying them will not prevent them from falling off in the next year, but sometimes lenders look beyond what is on your reports, and paying always looks bettter.

Message 5 of 9
Anonymous
Not applicable

Re: New here! Pay For Delete OR pay collections first then write GW letter?

Robert,

 

Those two situations are possible but I think I will try the PFD route first since I do have some time to try to fix it.  If not, I am still going to pay of all my collections in full since my lender advised I do so anyway.

 

As for the SOL, my potential lender said its best to pay my collections off instead of waiting for them to fall off, which I have 2 that will fall off next year, because he said they could sell them to someone else at that time and it will stay there for another 7 years. So is he wrong? I'm so confused..

Message 6 of 9
Anonymous
Not applicable

Re: New here! Pay For Delete OR pay collections first then write GW letter?


@Anonymous wrote:

Robert,

 

Those two situations are possible but I think I will try the PFD route first since I do have some time to try to fix it.  If not, I am still going to pay of all my collections in full since my lender advised I do so anyway.

 

As for the SOL, my potential lender said its best to pay my collections off instead of waiting for them to fall off, which I have 2 that will fall off next year, because he said they could sell them to someone else at that time and it will stay there for another 7 years. So is he wrong? I'm so confused..


 

As far as I know a CA cannot reset the SOL on a debt simply because they just bought it. It would be inaccurate reporting, and possibly violate the FCRA

Message 7 of 9
Erick12
Valued Member

Re: New here! Pay For Delete OR pay collections first then write GW letter?

Lender's really don't know anything about credit scoring or credit reporting in general. Don't rely on things they say.

 

When it falls offs is tied to the date of first delinquency and that's it. Selling it later on doens't change a thing.

Message 8 of 9
Anonymous
Not applicable

Re: New here! Pay For Delete OR pay collections first then write GW letter?

You guys are awesome! I was about ready to pay off all the collections before all of this. I am glad I researched a bit.  Im guessing my lender wants me to be ingood standing with all of my debts for the loans benefit but not really for the score that much.

 

I just sent out a bunch of really nicely worded pfd emails to most of my creditors and one agreed within the hour!

Im so happy for my first potential win.

Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.