PFD Example Letter

[shanac]

Lasardo, do you recommend doing a PFD for a medical collection or follow the HIPAA process?

[Lasardo]

YMLD-
Congrats on your road to financial freedom!
Congrats on AT&T, that is wonderful.
I think there are some different laws regarding TX you may want to read through this post. I don't know if it will help but worth a quick read.


You then want to check your state statutes to see if your state requires a CA to be licensed and/or bonded. If your state does, check to see if the CA is licensed and/or bonded. If the CA isn’t in compliance with state laws, don’t disclose to them that you know this fact already. You don’t want to “show them all your cards”, keep this for back up ammunition.

If SOL has not expired and you can not PIF, then any action you take on the account will be at your own risk. It is advised not to wake a sleeping giant if you are within SOL and cannot PIF. Even if you do nothing, you can still be sued. You just don't want to put yourself out in the "spotlight" when you cannot PIF and it is within SOL.

The following information is intended for those who are dealing with accounts that the SOL has expired on or they can PIF.

The next important step is finding out who owns the debt, the OC or the CA?

If both the OC and CA are reporting, does the OC show a balance? When an OC sells an account, they have to report a $0 balance. If they still own the account, both the OC and the CA can report a balance.

If the OC still owns the account, I would call them first and ask if they could pull the account back from collections and allow you to PIF. If they agree then you need to pay them in full and then send the CA a DV.

If the OC doesn’t own the account, then the OC isn’t going to be able to do anything for you. You have to deal with the CA.

Send a DV letter CMRRR to the CA. (DV's are never sent to the OC). See this link. You then have to play the waiting game. A CA is under no time limit to answer a DV but all collection activity must stop until they do respond. If you happen to live in Texas you can file a "Notice of Inaccuracy" that compels a CA to respond within 30 days. Here is a link to the Texas Finance Code that covers debt collection.

If they validate properly and you agree with what they sent, then you would want to send a PFD letter. An example can be found here. It doesn’t need to be sent CMRRR. If you get no response or a negative response from your PFD letter, I would search the internet for the names of vice presidents, presidents, managers, etc and address the letter to them. Also look for email addresses and send via email. Google and the BBB are great places to look.


The installment loan you have will boost your score more than a gas card, department store or a credit card so that's great you have it on auto-pay.

A secured credit card is the best way to boost those scores. Within one year I had gone from 554-754 by removing SEVERAL negative items but mainly by getting a few secured ccrds. You mentioned USbank but I would go with Cap1 for now only because they give out cards to just about anyone therefore avoiding a hard inquiry if you are denied ( although inquiry's are not as negative as people think)
Cap1 will give you a small credit line of $99-$500 depending on your credit. I add $25 a month (or you could add per pay check) and watch your credit line grow, the higher the available credit the better, of course. Additionally, when applying for other cards they will look to your credit line with Cap1 and assume that is a credit line you can handle and go with the same amount... Also cap1 does not list their accounts as "secured" on the credit reports like some banks do. You can go to their website and enter some of your info before actually applying.
After you have built say 6 months I would apply for some other cards (avoid 1st premier) I made that mistake. I also got (2) cap1's at the same time.


Unfortunately I do not know a thing about student loans but their is a forum specifically for them. I would inquire what options you have with the experts there.

I truly think you have some very minor problems that are easy to rectify. Within exactly 1 yr (12/11-12/12) I was offered a Citibank 18 months no interest and a $6500 CL.
Like you said keep your utilization down BUT don't let it sit in the drawer collecting dust that defeats the purpose of having a cc and building credit.

Additionally, you may want to look into a"credit builder" account. I have listed it on this website all the benefits available from one abd the details. You can save money while building credit at the same time. Mine gave me 34 points in 6 months. Also, it is listed as an installment loan.

Hope this helps,
Lasardo

[Lasardo]

This was the PFD letter I used over and over again of course I edited to my situation.


Below is an example PFD (Pay for Delete) letter you can use.

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Collection Agency
1212 Maple St
City, State Zip

Re: Collection Account for Original Creditor Account #: 00000xxxx

Amount: $25.00

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digits.

In the spirit of compromise, I am willing to pay this account IN FULL (or settlement percentage) if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

If you agree to the terms and accept this agreement, certified funds for the settlement amount of twenty-five dollars ($25.00) will be sent to Collection Agency in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.

Collection Agency agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Collection Agency will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

If you agree to the above terms, please prepare a letter on your company letterhead explicity agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Collection Agency. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.

Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

You
123 Any Street
City, State Zip



Medical accounts are actually quite easy to remove. The chiropractor, since it is small, I am sure will remove for you.

Even if they have ignored your PFD letter send another, I sometimes had to send more than one and send as many GW letters as needed until you reach a positive outcome.

Hope this helps,

Lasardo

[YMLDC09]

Lasardo: Thank You!

I was wondering why Cap1 secured had a better offer. Thanks for explaining I will also add per pay check as you have suggested. I thought I read the amount does not matter? Your plan is more my speed

I will send the CA for both AT&T and Columbia Gas a DV letter after I PIF as you recommend.

Was your FICO I the 550's when you were offered 2 Cap1's?

[YMLDC09]

Just got the $99/$200CL with Cap 1!!

[Lasardo]

Congratulations on your success with Cap1! !!👏
Those are great CL's! Btw what was your Credit score?
In reference to your gas card and AT&T I would send a PFD letter THEN PIF.
Depending on how old they are you may want to even offer a lesser amount first, if they deny that offer, offer a little more say 50% then 75% THEN offer the full amount. And remember to NEVER admit to the debt.
When I got the CAP1 cards my score was 554, I was given a $300 CL which blew my mind. And I just send in $25 a month I am up to a $675 CL now, but I have a Citibank 0% interest fir 18 months abs a $6500 CL that I use. Yay!
Do you recall the "Credit Builder" Account I had mentioned? I think you would really benefit from one. To save AND build..
This is the way it works:
- You decide how much you want to save. I went with 2,000.
- You can choose between 1k and 5k.
- you pay, the percentage has elated me at the moment, (brain strain), but my payment is $87 a month for 2k so if you choose only to save 1k your payment would be 43.50.
- the payment is put into a CD (Certificate of Deposit)
- you choose the amount if time you want the funds available to you (1-5 years). I went with 2 yrs.
So to recap: I have an account that is a CD that I pay $87 a month for 2 yrs.
- as the funds sit in the CD you EARN interest, pretty cool huh?
- at the end of 2 yrs (or what ever time frame you have chosen) the funds are available to you.
- as you are making on-time, consecutive payment those payments are reported to the credit bureaus.
- it is listed in the credit bureau report as an "installment loan"
On a scale installment loan are listed as:
Dept store/gas cards: 1 star 🌟
Credit cards: 2 stars ⭐⭐
Installment loans: 3 stars ⭐⭐⭐
Mortgages: 4 stars ⭐⭐⭐⭐

So you see an installment loan will give you more good credit than a gas or credit card.
I can tell you in error my credit builder account was closed .. Because it was closed I was able to get a clear picture of how much credit I lost .
34 points in exactly 6 months!(May- Oct) when it was opened again I gained those points again.
- so you see the benefit of it and if you chose to pull the funds out early.. You are only penalized the interest you have earned.

I am buying my first home . Yay! 🎉So I am pulling it out early , I will only lose appx $80 which is not TOO bad, it could be worse.
BTW, the bank I use is BMO HARRIS but if you ask any bank or credit union you'll find that most are offering them now and they are easy to qualify for, I only had that 554 CS when I received mine.
If you have ANY questions do not hesitate to ask.

Lasardo
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[YMLDC09]

Lazardo: did you have a few collections when you went to BMOHarris? I called them and I have to 'qualify'..a bit nervous 😁

[Lasardo]

I had SEVERAL collections. In 2011 I started with 27 collections (mostly medical from 2008/2008) so by May of last year when I opened my Credit Builder I still had many on my report.
I would not be nervous, I am sure you will be fine and honestly hard inquiry's do not have as much if an impact as one would think unless they are in excess.
Keep me posted as to what happens!
Lasardo

[electra]

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@Lasardo wrote:
This was the PFD letter I used over and over again of course I edited to my situation.


Below is an example PFD (Pay for Delete) letter you can use.

-----



Collection Agency
1212 Maple St
City, State Zip

Re: Collection Account for Original Creditor Account #: 00000xxxx

Amount: $25.00

To Whom It May Concern:

This letter is to inform you that the validity of this debt is disputed. I am not sure of the account number, as I have never heard from you regarding this account. The account number I have is the one listed on my Experian credit report – which omits the last few digits.

In the spirit of compromise, I am willing to pay this account IN FULL (or settlement percentage) if you agree to immediate deletion of this account from any and all credit reporting agencies (Equifax, Experian and TransUnion). The purpose of this settlement is merely to have this item removed from my credit files. It is not to be construed as an acknowledgment of liability for this debt in any form.

If you agree to the terms and accept this agreement, certified funds for the settlement amount of twenty-five dollars ($25.00) will be sent to Collection Agency in exchange for full deletion of ALL references regarding this account from my credit files and full satisfaction of the debt. As certified funds will be used for payment, there shall be no waiting period regarding the deletion of this account from the credit reporting agencies.

Collection Agency agrees to delete ALL information regarding this account from the credit reporting agencies WITHIN TEN CALENDAR (10) DAYS following receipt of payment as specified above and will not discuss the terms of this settlement with anyone, excluding your client on this account. If contacted by any third party, including credit-reporting agencies, Collection Agency will not acknowledge that any settlement offer was made, accepted or executed and will, in fact, deny knowledge of any such account.

If you agree to the above terms, please prepare a letter on your company letterhead explicity agreeing to the same terms as the above settlement offer and have it signed by an authorized representative of Collection Agency. It will be implied that this letter shall constitute a legally binding contract, enforceable under the laws of my state.

Your response must be postmarked no later than 15 days from your receipt of this settlement offer or this offer will be withdrawn and I will request full validation of this alleged debt, as provided for by the Fair Debt Collection Practices Act.

Please address all correspondence regarding this account to:

You
123 Any Street
City, State Zip



Medical accounts are actually quite easy to remove. The chiropractor, since it is small, I am sure will remove for you.

Even if they have ignored your PFD letter send another, I sometimes had to send more than one and send as many GW letters as needed until you reach a positive outcome.

Hope this helps,

Lasardo

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No offense, but I would avoid using this template.  I used it early on in my clean up efforts and ended up with the CA marking my account as disputed but otherwise completely ignoring the letter.  (Which Shogun pointed out was correct due to the following sentence in the template: This letter is to inform you that the validity of this debt is disputed.)

Also, the tone is pretty demanding and a PFD is basically a good will letter.  

[awalter479]

Great Letter, love it! I am gona try this with an older Collection on my TU account (parking violation).