How to Get a Pay for Delete from a Collection Agency

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A "pay for delete" is simply a way to pay a debt owed to a company — usually a collection agency — in exchange for the deletion of the negative item from your credit report. Accomplishing this objective involves a certain strategy and procedure but is eminently doable.

  • Understand what you are up against. Collection agencies are very hesitant to do pay for deletes and will probably initially refuse. Persevere.

  • Call at the end of the month with your offer. Collection agency representatives have quotas to meet. Some may be more than willing to take your offer to keep their jobs.

  • Offer more than the last settlement offer you received. This is especially enticing to a collection agency.

  • Never admit the debt is actually yours. Just claim that you are willing to pay to have it removed. Merely admitting the debt is yours can cause you problems with the statute of limitations resetting in some states.

  • Write an agreement for the collection agency representative’s signature. Include the amount to be paid, the deletion of the item within a certain time frame and the agreement of the collection agency not to sell the balance of the debt to any other collector.

  • Fax your agreement. If you want to keep your deal, you have to help the representative make quota. This arrangement has to be completed as quickly as possible.

  • Make sure you get a signature. Your agreement is not valid without a valid signature. The agencies know this. Do not accept a stamp, and do not sign the agreement yourself. Your signature could migrate to unwanted places.

  • Overnight a money order to the collection agency. Do not, under any circumstances, send a check or allow a direct draft from your checking account. In the event that you are forced to do this, close your checking account and open a new one.

  • Wait out the time limit you specified, then pull your credit to make sure the negative tradeline no longer appears.

Tips & Warnings

  • Call and talk to different representatives. One representative may refuse simply because he has already made his quota that month. Keep trying.
  • It is all over the Internet that you can force a collection agency to abide by a pay for delete if you simply write the agreement on your check. Once the agency cashes the check, it is legally bound to delete. Perhaps, but the company likely won't bother. This leaves you in a position where you have to file a lawsuit that you may or may not win, since pay for deletes are a violation of the Fair Credit Reporting Act. Plus, the agency will gain full access to your checking account, which you certainly do not want.

References

  • Photo Credit Jupiterimages/Photos.com/Getty Images
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