FAQ: Creditor Won’t Delete for Payment? What Now?


Delete for Payment

1787 Debtor’s Prison Window (Photo credit: jimmywayne)

Delete for Payment

Delete for payment is the single most important weapon in the credit repair arsenal.  I have mentioned many times that I strongly advise debtors to insist to creditors that they delete negative entries at the Credit Reporting Agencies in exchange for payment.  Start by making a low-ball offer on the balance under condition of delete for payment.  Remember that they debt collectors only pay .03-.07 cents on the dollar for these older accounts.  Don’t let them tell you they are not allowed to delete for payment the report of the debt.  There is nothing in their contract with the Credit Reporting Agencies that forbids the practice of deleting for payment.

There is Nothing in the Law that Forbids Delete for Payment

If they refuse to delete for payment as a matter of policy you can get around it by making deletion part of the final settlement agreement.  Try language such as this:  “This payment is being made as a settlement of a disputed claim and is not an admission of guilt or liability by the Debtor. Creditor and its agents agree as a condition of payment not to verify the claim when I submit my dispute to the Credit Reporting Agencies.”

This  tactic has never failed me when dealing with unreasonable and ill informed debt collectors.  If you don’t do this before paying you will never get the collectors to delete for payment.  Don’t think that paying an old debt necessarily helps your score.  It may hurt your score because the fresh annotation of a paid debt re-ages the entry.  Older entries hurt your score less.  It’s always sad when a client comes to me who has just paid debts that were about to fall off after the usual 7 years anyway.  The only time you should pay old debts without delete for payment agreement is if a bank insists on it in order to grant you a mortgage.

If you have already paid it, file an objection claiming it’s too old or it’s not yours.  Debt collectors usually don’t bother responding to complaints where they have already been paid.  You win that way.

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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