When Collection Agency Agrees to PFD - But Won't Send a Letter Saying it

[Anonymous]

Hello--

I spoke to a collection agency yesterday (they are collecting on behalf of the original creditor--confirmed by by OC and agency, so the agency does not own the debt). 

Both OC & agency have both said they will not take less than full balance for this debt at this time (default date was in December 2019--so it's new)

The collection agency said they would pay for delete (PFD) after I paid in full, but they won't send a letter indicating it. 

What are my options?   

- I did have an idea to write up a custom PFD letter & then get a cashiers check from my bank, then mail both to the collection agency.   The check would have language that said if they deposit/cash, they're agreeing to the terms/conditions in the PFD letter (then on the PFD letter, document the check number and standard PFD language) --is that a good/bad idea? 

Any constructive feedback/comments are much appreciated--thanks!

[Brian_Earl_Spilner]

The OC won't recall the debt? If they're showing the charge off along with the collection, PFD of the collection will still leave the OC charge off.

[Anonymous]

Tried the OC a few different ways (letter--was ignored, called a few times--they refer to the collection agency and won't really get into many details), but they won't recall---I even offered to pay them in full in a lump sum, but it was also a no go.

Oddly enough, there are several lines on my reports from the OC...it was a place that offered small installment loans....each time I took a new loan, they put a new line on my report.    There are no negative comments in my report from the OC--they're actually listed in the "Satisfactory Accounts" section on my report---so if I can get this collection off there, it would be awesome!

[Anonymous]

I am never comfortable with the verbal/phone guarantee that a collection agency will do the PFD. If they announce the call is recorded, then that would calm my apprehensions a little. Only a little.  But, as a matter of policy we should always push to get something in writing before paying. It formalizes the commitment.  Collection agencies are in the business of collecting, and are not obligated to offer PFD and likely not obligated to honor a verbal agreement.  I don't know.

Get them back on the phone.  Ask the rep if they can make an exception and have a letter sent. The problem is that most of these, if not all, agencies won't email the agreement.  They know a lot of people don't have access to a fax.  Moreover, their experience is probably that they have lots of PFD letters out there and no delivery from the debtor. You should always have a fax number.  I use My Fax which has come in handy; that way, as soon as they say, "we can only fax it.." - they're betting you don't have a fax! - you reply, "oh great here is my fax number...."

Tell them you will be able to give them a debit card or check by phone. 

You cannot trust them, even on a recorded line.  You need something in writing.

Let us know how things go.  I think it will work out for you.

Good luck!

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@Anonymous wrote:

Hello--

I spoke to a collection agency yesterday (they are collecting on behalf of the original creditor--confirmed by by OC and agency, so the agency does not own the debt). 

Both OC & agency have both said they will not take less than full balance for this debt at this time (default date was in December 2019--so it's new)

The collection agency said they would pay for delete (PFD) after I paid in full, but they won't send a letter indicating it. 

What are my options?   

- I did have an idea to write up a custom PFD letter & then get a cashiers check from my bank, then mail both to the collection agency.   The check would have language that said if they deposit/cash, they're agreeing to the terms/conditions in the PFD letter (then on the PFD letter, document the check number and standard PFD language) --is that a good/bad idea? 

Any constructive feedback/comments are much appreciated--thanks!

---

[Anonymous]

The problem is the collection agencies are bound contractually with the CRAs not to do PFDs. Consequently they’re obviously hesitant to put it in writing. Because that would be a clear violation of their contractual relationship.

Yes, a verbal contract is binding and enforceable. The problem is what if they don’t admit to the contract? Then it becomes your word against theirs.

What’s the middle ground? Well, depending on the state you live in, the laws are different on recording phone calls. Some require only one party have notice, while some require both parties have notice.

Nevertheless you can record the call and advise them the call is being recorded, if your state requires it, and then make the verbal contract. 😉

[CYBERSAM]

I had few CO that was removed by verbal agreement over the phone. Also had couple that was reporting CO and OC. It took couple of months but they removed it.

Their goal is to recover some or all payment as soon as they can. Get the name of the person you speak with and make it very clear before making a payment.

[kflo01]

I had CA say they delete on payment but refuse to put it in writing.  They all have honored that. I would say for it.

[gdale6]

A verbal agreement is enforcable as well should the need arise. Most who agree to do it and wont put it in writing will still follow through. As stated above CRAs discourage a PFD so some are hesitant to give written proof.

[Anonymous]

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@Anonymous wrote:

The problem is the collection agencies are bound contractually with the CRAs not to do PFDs. Consequently they’re obviously hesitant to put it in writing. Because that would be a clear violation of their contractual relationship.

Yes, a verbal contract is binding and enforceable. The problem is what if they don’t admit to the contract? Then it becomes your word against theirs.

What’s the middle ground? Well, depending on the state you live in, the laws are different on recording phone calls. Some require only one party have notice, while some require both parties have notice.

Nevertheless you can record the call and advise them the call is being recorded, if your state requires it, and then make the verbal contract. 😉

---

There is a way around the CA agreement with the CRA's not to do a PFD - and that's a very good Non-Disclosure Agreement (NDA). Here's how it would work:

1: You and the CA agree never to disclose to any third party anything about this matter. Nothing whatsoever, to anyone. They agree to that.

2: You also include a Liquidated Damages clause in the NDA that says something like "any breach of this NDA will necessarily cause damages to the aggrieved party. Both parties agree that such breach will cause reasonable and agreed upon liquidated damages in the amount of One Hundred Thousand ($100,000.00) dollars". You may get some push-back from the CA on this, but my position would be "well, if you are not agreeing on what the damages for breach of contract will be, you obviously do not intend to adhere to the terms of the NDA agreement. As long as you adhere to the terms of the NDA there is no problem."

3: After they have signed off on this agreement (NOTHING is to be verbal), you pay them.

4: Thirty days after you pay them, you dispute the TL with the CRA. Since you are disputing somehing and not saying anything about the debt other than the TL is incorrect, you are not violating the NDA. Under FCRA the CRA will contact the CA and ask "Is your TL accurate and correct?". The CA has three choices:

4A: Say nothing and do not respond. This would be in accorance with the NDA. At that point the CRA must remove the TL pursuiant to FCRA. End of issue.

4B: They update the TL to "disputed". This is a breach of the NDA and now they owe you $100,000 or whatever amount is in the Liquidated Damages clause.

4C: They verify the TL. This is also a breach of the NDA and now they owe you $100,000 on the same basis as 4B.

I call this the "Back Door PFD" because while it is nota PFD agreement, it functions just like one.

[Chill121]

@Anonymous 

Thank you for sharing this intonation! Have you ever used the "back door PFD" method? What were the results? Do I need to get a lawyer in order to attempt this method?

I current have a Macy's CO around $900 that is outside the SOL with 2 years of credit reporting left to go and I'm carefully calculating my next steps towards trying to get them to delete it if I pay it.

Thanks!