Pay for delete question

[Anonymous]

Hello, Portfolio Recovery Sent me a letter to settle down the debt. The original debt Chase was $1000 now Portfolio Recovery is offer me pay them one time payment for $400 to settle down the debt and they will send me 1099 tax. I have some question. What mean "pay to delete" can tell them about that? And how will looks in my credit report? Thanks

[RobertEG]

First, I would advise paying them at least $401 on a settlement of a $1,000 debt.

If the difference between the full and settled debt amount is less than $600, there is no tax obligation for the consumer.

A pay for delete is an offer by the consumer to pay the debt in exchange for the agreement by the debt owner (creditor or debt collector) to delete their reporting of derogs to the CRAs.  The PFD offer can be for the full amount of the debt, or for a lesser amount  Chances of their acceptance usually increases if the PFD offer is for the full amount of the debt.

Simply paying a debt does not remove the derogatory reporting of monthly delinquencies, a charge-off, or a collection, and thus does not result in score improvement in payment history.  However, if they agree to delete the derogs, then they are obviously removed from your scoring.

[Anonymous]

Thanks

So is better pay them the full amount because I have better chances Ok then.

I have some additional questions
1/If I paid them $401 and they don't want erase me as delinquent, charge off or collection this will be erase after 7 years or not? Or how long will take this to be erase?
2/If I paid them $1000 full amount if they're still not want be erase can I appeal this with 3 credit borou?
3/Can I talk directly with Chase I don't want deal with collector?

Thanks for your time.

[bdhu2001]

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@Anonymous wrote:

Thanks

So is better pay them the full amount because I have better chances Ok then.

I have some additional questions
1/If I paid them $401 and they don't want erase me as delinquent, charge off or collection this will be erase after 7 years or not? Or how long will take this to be erase?
2/If I paid them $1000 full amount if they're still not want be erase can I appeal this with 3 credit borou?
3/Can I talk directly with Chase I don't want deal with collector?

Thanks for your time.

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No.  You can't appeal it. Contact them and counter offer. Tell them you like their $401 offer, but would like them to also delete the derog from your Credit.  How old is the original late?  Sometime the age late and the fact that it may be past the statue of limitations for them to force collection can help.

You can only appeal it if you get the agreement in writing and they don't uphold their end of the agreement. Any way start with the amount they agreed upon and if they so no try $600.  Best of luck to you.

[Anonymous]

Thanks for your answer.

The original date was June 2012, I live in NY here is I think 6 or 7 years SOL I'm not sure.

I spoke with Equifax today about a question about my credit report. Even if I paid and even they can't delete my negative account in Equifax will erase it automatically after 7 years. 

I'm sorry if I ask many questions but I wanna see the possibilities to get track my life one more time I don't know how credit cards coamoniesompanies and collector thinking.

-So let guess I paid them the offer $401 without any change of delete this negative account anyways will be erase right I just wanna be sure? Like says Equifax or is any tricky loophole here I don't know or they don't want to tell me? Or something hiding from collector this won't ever erase from my credit report?

-Also the credit cards companies will know I paid less money to their debt so in the future they can put me in blacklist? Or I will be fine? Because they offer me $401?

Thanks a lot for your patience!

[Anonymous]

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@Anonymous wrote:

Thanks for your answer.

The original date was June 2012, I live in NY here is I think 6 or 7 years SOL I'm not sure.

I spoke with Equifax today about a question about my credit report. Even if I paid and even they can't delete my negative account in Equifax will erase it automatically after 7 years. 

I'm sorry if I ask many questions but I wanna see the possibilities to get track my life one more time I don't know how credit cards coamoniesompanies and collector thinking.

-So let guess I paid them the offer $401 without any change of delete this negative account anyways will be erase right I just wanna be sure? Like says Equifax or is any tricky loophole here I don't know or they don't want to tell me? Or something hiding from collector this won't ever erase from my credit report?

-Also the credit cards companies will know I paid less money to their debt so in the future they can put me in blacklist? Or I will be fine? Because they offer me $401?

Thanks a lot for your patience!

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Welcome to the myFico Forums!

The collection agency does not have to delete if you pay them, unless they agree in writing in advance.  As stated previously, they are more likely to accept if you pay in full, however, some will never delete regardless of what you pay.

If you offer them less than full, the account will show something like 'legally paid for less than full'.  That is still better than not paid.  Other creditors will be able to see that remark, and make their own opinion of it.

The original creditor would be the only one that would put much emphasis on the fact that you had a Charge Off with them.  Some never let you back in unless you pay all past amounts, others will let you back in.  I am not sure about Chase.

It was suggested that you insist that you settle for at least 401 dollars on the debt so that you would not get a 1099c for cancelled debt and have to show it as additional income on your IRS forms.  If the amount forgiven is less than 600, they cant use that form.   So we are suggesting you insist on at least 401 instead of the 400. 

I have had several accounts that were settled for less than full and all have had to wait the full 7 years to become excluded.

Keep in mind that after the seven years, the accounts are not 'erased' from your reports.  They are 'excluded' from normal views but not erased.  If you dont settle an account before the 7 years, it is still an open debt, just not shown any longer.

Hope that Helps

[Anonymous]

Thanks for welcoming me to the forum.

I'm agreed with you for their internal records some banks you're expecting paid them everything plus interest rates but in the other hand they are just offer me settle their amounts with less money so is a sword with double edge, I nee to think about it, I could prefer talk with the general manager or supervisor and see if he/she can work out a better settlement for both parties mine and them, and get something in write if it's possible. but thanks for you answer was really informative.

"Keep in mind that after the seven years, the accounts are not 'erased' from your reports.  They are 'excluded' from normal views but not erased.  If you dont settle an account before the 7 years, it is still an open debt, just not shown any longer."

This lead more questions about my credit and I'm sorry if I ask too much, but I think this will be the last question.

So credit cards companies just have access superficial or actual open accounts? But they don't have the "power" to see the last 10 years of old credit cards? Or "Excluded" accounts? I just wanna be sure. I just don't want screw up and after I will be regret big time.
So let guess I paid Chase $401 will show the comment section; legally paid for less than full" after 7 years that will be for my personal record but other viewers won't see that like credit cards companies, landlord or car dealers?

I really appreciate your time and help me to track again to have a good score!