How To ‘Pay For Delete’ Collections

I have been calling the collection agencys and asking for a pay for delete letter and ever single one of them says they will not delete. advice?

Carl

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Hello Carl,

The collection agency would prefer to show the account as a paid collection.  Unbeknownst to many consumers, a paid collection typically reduces a credit score.

(pause)

How is it that a consumer who pays a collection is considered a higher credit risk than a consumer who didn’t pay a collection?

(rhetorical pause)

There are a few reasons why you are getting resistance but primarily it is because the Metro 2 Manual advises collection agencies not to delete paid collections.  They can accomplish the deletion by entering Account Status Code DA into Base Segment Field 17A.

Read: Collection Agencies Don’t Know Metro

The bottom line is that many collection agencies pervert the credit reporting system with malicious reporting and the fact that a paid collection reduces a consumer’s credit score is further evidence of a broken credit reporting system.

Collection agencies are debt collectors and there is nothing wrong with collecting a just debt.  You can use that to your advantage, because they are debt collectors first and foremost.  They want to get paid.  They’ll get paid if they provide a deletion letter.

If that doesn’t work then read the articles on the FDCPA, FCRA, and your state’s mini-FDCPA.  Catch them in a violation or two and compromise with a deletion letter.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.