To PIF or Not to PIF? That is the question...

[JYKim1]

I just pulled my EQ report and found a handful of small collections that I wasn't even aware of. I do remember them, but they were not present on the EX or TU report. There are two Medical bills for small amounts in 2008 that I could PIF or try to settle. I don't know if I want to wait 2 years to wait for them to fall off. Should I call them and get a written agreement to PFD?

[guiness56]

Not every creditor will report to all 3 CRAS, which is a good thing.

If you know they are yours write them and ask if they would be willing to delete for payment.  Sometimes they refuse to give anything in writing but say they will delete.  You just need to go with your gut feeling about trusting them.  Most will.

Email can work too if you have the address.

[RobertEG]

+1

As for the option of waiting two years for them to fall off, while it will prevent others from becoming aware of the unpaid debt by viewing an unpaid collection in your CR, the debt will still remain unsatisifed after credit report exclusion of the colllection.  It could still become a factor in subsequent apps for credit, as they could become aware of the continued presence of unpaid debt via other means, such as simply requiriing a lisiting in your credit app.  It is always best, other than $ out of pocket, to have no unpaid, delinquent debt in your credit history.

As for settlement vs. PIF, obviously, the best situation is to obtain a PFD, and thus no credit reporting remains.

In the event they wont bite on a PFD, the next best option is to attempt to settle for less, thus saving $, with their agreement not to report paid/settled for less to the CRA.

In that event, the acct will appear the same to others viewing your CR as if you had paid in full.

If they wont agree not to report paid/settled for less, then a PIF will avoid that comment.  You can pay the full amount to avoid others seeing that, in the past, you did not fully pay your entire obligated debt.  It might be worth the $.

[JYKim1]

Ok. So I have looked at other threads on here, and I'm confused on the suggested route. Do I contact the OC to get the account withdrawn from the CA so I can PIF? But then what? Contact the CA and ask for a DV or GW and hope that they pull it off? Or am I better off contacting the CA and asking for the PDF?

[guiness56]

If you know the debt is yours you can go straight to a PFD.

[RobertEG]

+1

If you are able to obtain acceptance of a PFD by the debt collector and pay thru them, it removes any issues of their having to delete after you pay the OC based on termiantion of their collection. 

It's the direct route, and any PFD agreement becomes a binding contract that you can enforce.