What is a Pay-For-Delete Letter?

What is a Pay-For-Delete Letter?




As the amount of personal debt continues to increase, more and more people face debt collection from bill collectors.  Defaulting on debt payments can lead to negative comments on a person’s credit report.  Negative comments can cause a severe credit score drop and remain on your credit report for seven (7) years.


A Pay-For-Delete letter is one option to attempt to resolve the negative comments reported on your credit report.  Pay-For-Delete letters provide an opportunity to ask debt collectors to remove negative comments on a credit report in exchange for making a payment to the debt collector to settle the outstanding past due debt balance.


Debt collectors are not obligated to agree to remove negative comments from a person’s credit report.  However, it is worth asking as part of an offer to pay a lump sum to settle a debt balance.


The Pay-For-Delete letter should request the debt collector to remove the negative comments on your credit report, which has been reported, in exchange for a lump sum payment amount to settle the debt balance and provide a deadline in which the debt collector must respond to accept your offer in writing.  Be sure to request that the debt be removed from all three (3) credit reporting agencies (Equifax, Experian and Transunion).


If a debt collector refuses to remove the negative comments from your credit report, settling the debt with an offer of a payment for less than the amount due is still beneficial.  Settling a debt avoids bill collector harassment, lawsuits, and garnishment of wages and bank accounts.


Debt settlement presents an opportunity to increase your credit score.