Why do collection agencies refuse something in writing to fix credit report?
EagleLanding asked:
Hi. I am coming to settlement terms with a collection agency. I made an offer with the stipulation that I MUST have something in writing before I pay them a penny which states they will delete the entire history of their entry. The lady told me I’d have to take her word for it. I was like BS! I need that in writing. So here’s my question…
WHY o WHY if a collection agency agrees on a settlement amount do they not want to provide you a letter which states they’ll remove the collection from your report upon payment? They say they can do it, but won’t put it into writing. Why? It would seem like a small request after settling. What do they have to gain by not removing it? Unless they intend to use that as a way to collect the rest down the line. Is that it??
Because they cannot delete the entire history from your report. all they can do is mark it paid
No one can delete a true fact. the fact is you are delinquent on your payments
Because they are NOT ALLOWED to remove it from your credit report. Credits are not allowed to remove ACCURATE information. The credit reporting agencies are cracking down on this and pulling vendors ability to use those agencies. When you stiff a creditor. future creditors would like to know what type of person you are by looking at your history. If people were able to remove negative marks at will, the EVERYONE would have good credit adn the ENTIRE credit reporting system would be pointless. YOU are the one who stiffed a creditor, so YOU should pay the price by having that on your credit report.
Unless your agreement entails payment in full, they have absolutely no incentive to have the Credit Bureaus delete the negative entry. Reading between the lines and speculating a bit . . . they want to come to a settlement agreement but have no intention to ever delete the entry. I betcha that if you were to drop this “pay for delete” issue they would give you the $$$ settlement terms in writing.
Because they might not delete/remove it and they do not want you to be able to prove that promised that they would delete/remove it. If you had proof that they agreed to do it, and they did not do it, then you might be able to sue them. They refuse to provide proof of what they say, because they do not want have proof if they do not do what they say.
This is why I say that you should never ever deal with a collection agency on the telephone and should communicate only in writing.
Don’t go for this B.S. I’ve had companies delete items “payment for deletion” letter. I’ve also had emails sent to me for settlement amounts. It doesn’t take much to send an email. Don’t pay anything without getting something in writing or ask her “do you mind if I record this conversation as proof” if she agrees, then record the deal.
What type of debt is this? If this is for a defaulted/charged-off credit card debt, you’re wasting you time trying to negotiate the complete removal of the item. They can only remove what they report….The original credit card company will continue to report the charge off separately and this stays for 7 years.
For non credit card defaults: You may be able to negotiate the complete removal of non credit card debts like defaulted cell, medical, utility bills etc. from your credit report with a Pay for Delete agreement. This is a written agreement where you get a signed agreement from the debt collector (PRIOR to making any payment) where they offer to remove the negative items from your credit files after an agreed-to amount is paid. They will NOT want to do this….all they want is your money and their commission and they could not care less about your credit rating….Still, you have something they want (money) and that puts you in a position to negotiate on this issue. Example letter:
I am willing to resolve this issue for [$ xx] if your firm sends me a signed letter on your company’s letterhead agreeing that this account will be Paid in Full after this amount has been received and that you will remove all negative notations from my credit report after this agreed to amount is paid. Upon receipt of this letter I will mail you a USPS money order for this amount.
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Again, they are not going to want to do this…if they simply refuse to remove it, then you want to negotiate that they will update your credit report to “Paid in Full.” Get all terms of any settlement deals IN WRITING FIRST, then you pay. Never accept verbal promises over the phone..
Because if it ain’t in writing, it didn’t happen. NEVER pay a collection agency a penny unless you have the settlement agreement in writing first. Also, don’t give the collector direct access to your bank account.
As to deleting the item,some collection agencies will, some won’t. If the debt is a regularly reported item like a credit card or installment loan, the collection agency can’t remove the original creditor’s charge off.
By the way, even if you do get a written pay for delete agreement, it won’t do you a bit of good if the collector decides not to remove the item. Disputing the item and using the agreement as back up, won’t get it removed by the credit bureaus. They discourage creditors from removing legitimate info.