negotiating a pfd with a creditor

[Anonymous]

How does one approach a creditor to approve a pfd?  Once you get the creditor interested and of course that is an if, what do you need from them to ensure they will honor the agreement?  If they agree, do you need a letter from the before you make payment?  Obviosuly verbal would not be enough.  Could it be in the form of an email or does it have to be in writing?  Will they say just pay it and the letter will follow?  I am totally new to this type of negtioiating as a result I would be fresh meat to a creditor.  Just looking for some guidance.  Thanks in advance for all your help.

[Anonymous]

My only experience with a sucessful PFD was Midland Funding. I called, and asked for PFD. The customer service rep said that they would be able to do that, and promised me they would. I handed over my CC information, and then about a month later it was gone from my credit.

[RobertEG]

A verbal agreement can be enough, as verbal contracts are enforceable.

The problem is that, if the creditor asserts they made no such agreement, then it is harder for the consumer to prove the contract agreement in court.

Creditors have good reason for not putting PFD agreements in writing, as they violate the conditions of their credit reporting agreements with the CRAs.  CRA policy explicitly instructs furnishers not to make such deletions, as they are in business to sell credit reports ,and the more complete the credit history, the more their value to their customers.

Midland is mentioned, and is currently an exception, as their PFD policy has been reduced to public writing on their web site and it numerous general offers sent to consumers.  They have a current policy, notwithstanding their contract agreement with the CRAs. to delete collections if paid and at least two years delinquent.  They are thus actually enforceable as a written contract based on public policy statements beyond your personal converstations with them.

It is certainly prudent to attempt a written agreement, but if they decline to reduce the agreement to writing, it also may be prudent not to make it a show-stopper.  Once paid, the furnisher has no remaining financial reason to contest a PFD oral contract, and fighting the issue in court is likely not in their interest.  I would generally recommend accepting an oral agreement if they balk at reducing to writing.

[Anonymous]

My account is in collection, it is a Cap One account over 24 months old.  Would it be possible for me to negotiate with Cap One directly or must I go to the collection agency which I assume will be more difficult?  If possible to negotiate with Cap One, which department would I ask to negotiate with.  As usual, thanks in advance for all the information.  It is invaluable knowledge that everyone should know.

[RobertEG]

Creditors report activity, including payment history derogs, that occured on their account.

Debt collectors separately report collections, which represent continued efforts to collect on delinquent debt.

A creditor can only agree to delete their own reporting.  Thus, if you secure agreement from a creditor to accept payment directly to them, they cannot enter into a PFD agreement that binds the debt collector to delete their reporting.

A PFD offer only applies to information reported by the party to whom you are making the PFD offer.

If you are seeking deletion of a collection, the direct route is thus to make the pfD offer to the debt collector.

If they accept, you have a binding contract agreement with the party who made, and thus is authorized to delete, the reporting.

An around-the-barn approach that is often pursued if the debt collector will not agree to a PFD is to offer payment directly to the creditor, but with the condition that before they accept payment, they terminate their collection assignment to the debt collector.

If a debt collector has their collection authority terminated prior to payment of the debt, CRA policy instructs them to delete their collection.

Thus, you can, with proof of termination prior to payment, pursue deletion of the collection based on CRA policy.  That depnds upon the debt collector following thru on their reporting of deletion, which is often not prompt or even ignored, and can lead to problems.

[Anonymous]

Thank you very much, very informative.  This is knowledge that I am just not privy to.  I will start making phone calls and hopefully report back to this forum with good news so that other people can learn and improve.

[Newbie2018]

An update would be greatly appreciated. Good luck to you.

[Anonymous]

I am in a similar situation with a old cap one debt. Keep us posted thanks

[Anonymous]

I certainly will let the forum know what happens.  FYI, my debt is more than 24 months old and it is with a collection agency at this time.  Until recently didn't even know pfd was an option thanks to this forum I am now informed.  To be continued....