How To "Pay For Delete"

[Trish]

A PFD (pay for delete) is one way route to take to try and get an acct deleted. I have seen this work with CAs and OCs. It NEVER hurts to try.

One thing I can tell you for sure, is that the older the acct is the more likely this will work. If it's out of SOL, even better, because they KNOW that they can no longer legally collect on the date (i.e. take you to court/sue you for the debt). You can try to bargain them down for a lesser amount but honestly if you really want it deleted and it's not a large amount just offer to pay it off in full for exchange that they delete it.

So....if you are going to try a PFD, the first thing you need to make sure of is if the your state's and the CA's state laws honor restrictive endorsements.
(in my next post, I will be listing a link to the ALL of the state's U.C.C.s w/information on accord and satisfaction)


Below is a sample letter:

You can find more pay for delete sample letters here.

(this is one that I used for an OC. The CA was reporting but the debt was only assigned so I wanted to pay the OC and make sure they didn't send the payment to the CA - otherwise the CA could report it as paid and I would've had a harder time getting a delete)

*Just be sure to modify it to fit your situation

Date
Your name
Your addy

OC Name
OC Addy

Re: Acct # xxxxxxxxxxxx

To Whom It May Concern:

I am sending this payment via certified mail #xxxx xxxx xxxx xxxx xxxx to ensure that you receive it.
Enclosed please find personal check #xxxx from < your name > in the amount of $xxx.xx made payable to OC.

By cashing this check OC agrees to the following terms:

1. Acct # xxxxxxxxx is considered paid in full.

2. Remittance is payable ONLY to OC and may not be signed over or transferred to < CA name > or any third party collection agency.

3. The debt will be recalled from < CA name > and any collection activity will cease and desist.

If these terms are agreeable to the aforementioned parties, please accept the enclosed check in the amount of $xxx.xx.

Please note that cashing the enclosed check will bind you to the terms set forth in this letter.



Best Regards,

Your name


*Then on the back of the check under the endorsement area, I put "For Deposit Only to the Account of OC" (That way they cannot transfer the payment to the CA)


Staple the check to the letter and make a photo copy.
This way you have solid proof that if they received that check, they received the letter as well.

Once the check has cleared, give it about 10 days. If you haven't heard anything from them or your TL hasn't been deleted......then you need to contact them and find out why it hasn't been removed yet.

**Please keep this in mind.
This is not the ONLY way to do this. It's just one way. It's a little more gutsy to hand over payment and expect them to delete it. Some people have chosen to call and discuss (if you can keep your calm) payment options and getting an agreement to delete (then of course you want to get it in writing if possible). Some people have sent the PFD letter promising payment (I've even seen them enclose a picture of a MO or cashier's check) in exchange for a written agreement to delete it, however I haven't seen as much success with that.

IMO, if you give them the money, so it's right in their hand, then it is VERY tempting for them to cash it. And DO NOT give them a personal check. Not only does that give them your bank information but you can put a stop payment on a check (or it can bounce). If you give them a MO or cashier's check, it is guaranteed funds.

Also, if anyone has any different PFD letters they would like to share or any other ideas please feel free to contribute. I will also see if I can find some other PFD letters and post them later.

[Trish]

Once a creditor deposits or cashes a full payment check, they can't come after you for the balance. (Even if they strike out the words "payment in full" or write "I don't agree" on the check.)
The states in which this law is enforced:


Arkansas
Colorado
Connecticut
Georgia
Kansas
Louisiana
Maine
Michigan
Nebraska
New Jersey
North Carolina
Oregon
Pennsylvania
Texas
Utah
Vermont
Virginia
Washington
Wyoming

Certain states have modified this law.
In the following states, if a creditor cashes a full payment check and explicitly retains their right to sue you by adding
"under protest" or" without prejudice" along with their endorsement, then they can come after you for the remaining balance.

Those exact words must be used.
If they write "without recourse," on the check,or other indication that is partial payment, it is not enough.
If they communicate to you verbally or in writing , separate from the check itself, that is not sufficient either.
They MUST use the EXACT words above, on the check itself.

States following the modified law are:

Alabama
Delaware
Massachusetts
Minnesota
Missouri
New Hampshire
New York
Ohio
Rhode Island
South Carolina
South Dakota
West Virginia
Wisconsin



Here is a great link to the U.C.C.:
LII: UCC - Locator

[karlmich]

You mean to tell me that if I was to send them a payment for a charge card payment and I live in Michigan I can stop paying if they cash it? hehehe that is awesome. anyone from Michigan try it?

[Trish]

Here is another example of a PFD letter that a friend of mine gave me permission to post.......he called it the ultimate PFD letter because he used it twice and it worked for him both times.


Feb 9, 2007

First Renegade Assurance

Address, State

Re: Acct# 123456 OC



Regarding OC and the above account number, please find enclosed payment by personal check#123, in the amount of $X to be considered payment in full on the alleged balance of $xx.

As per our agreement, this payment will prevent the reporting of my account to all three credit bureas.

Regardless of the total amount you have alleged is owed, this payment represents payment in full and is made on the following conditions:

1. By cashing this check, First Renegade Assurance agrees not to report any information about this account to any of the credit bureaus.

2. Any and all inquiries and negative trade lines made by First Renegade Assurance and/or OC will be deleted from Mike G's credit reports within 10 business days.

3. No accounts will be verified to any of the credit bureaus.

4. Mike G will be provided a letter from First Renegade Assurance stating that the account is closed and will not be verified to any CRA or other third parties.

5. First Renegade Assurance is prohibited from selling, assigning, or otherwise transferring this account to any third party CA.

If these terms are agreeable and acceptable, please accept the enclosed check for $x.

Please note that cashing the enclosed check will bind you to the terms set forth in this letter.

Mike G

*On the check he wrote "by cashing check FRA agrees to permanently delete any/all information from all CRAs"

[oneilldn]

Hey Trish,

Do you know if for this to apply both states needs to be accepted? Or just my state?

Thanks...

[Trish]

For restrictive endorsements, it is preferable that your state allows them. That's where it will be enforced but you'll also want to check to see if it's allowed in the OC/CA's state. Even though you'll be enforcing it in your state, there is no guarantee they won't fight it if their state doesn't allow it.

[karlmich]

Originally Posted by Trish

For restrictive endorsements, it is preferable that your state allows them. That's where it will be enforced but you'll also want to check to see if it's allowed in the OC/CA's state. Even though you'll be enforcing it in your state, there is no guarantee they won't fight it if their state doesn't allow it.

SO this is the definition in Michigan

Sec. 1207.

(1) A party who with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved. Such words as “without prejudice”, “under protest” or the like are sufficient.

(2) Subsection (1) does not apply to an accord and satisfaction.


History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993


© 2009 Legislative Council, State of Michigan


So does this mean that accords and satisfactions are not enforcible even if they write Under protest on the check?

Thanks for your help.

[karlmich]

OK also I was reading this section. Under sections UCC3 -311 It is very confusing but there looks to be a way out for the creditor and there is a lot you have to do to establish this accord and satisfaction. can you break it down for me in lay mens terms. this is very confusing.


here is the link

Michigan Legislature

thanks again

[Trish]

Well, I was able to look over that link a bit. Yes, it is confusing.
I do not claim to understand all of it. I have stayed up many nights trying to comprehend that crap. :p What I do know is that when researching restrictive endorsements.......you should be looking under the section "negotiable instruments". I did a little more looking in that area of the Michigan UCC and found negotiable instruments (section 3204) but where I believe the law applies is in section 3206.

Take a look and tell me if that makes a little more sense.
Michigan Legislature

[jlyriq]

For PFD do you suggest send a personal check or a money order? and i send those CMRRR or CM?