From Dave Sullivan

“Pay for Delete” refers to a collection company offering to delete a collection account from someone’s credit report if you pay them in full. There is no formal “pay for delete” plan with the repositories or collection companies.

The Repositories disapprove of removing correct negative information simply because it has been paid. They will give a collection company that continuously makes this request warnings and could eventually restrict the collection company’s ability to report to that repository. Some repositories agreements clearly state “Paid in full collection accounts must not be deleted” & “Do not delete paid in full collection accounts.”

Recently collection companies have been instructing debtors to pay the collection and then file a dispute with the repositories and the collection company will tell you that they will not respond to the dispute and it will be removed per the Fair Credit Reporting Act. The problem with that method is you have nothing to fall back on when someone unfamiliar with the arrangement re-verifies the debt.

So there is a lot of gray area when trying to use the “Pay for Delete” strategy. Although it should always be your goal when dealing with collection accounts. Whatever the conclusion get your agreement in writing, on company letterhead, signed with ink. Then you will no longer need someone at the collection company to fix your report

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