“Pay for Delete” is a method of paying and requesting the removal of derogatory items from your credit report. Regardless of whether you are facing a financial crisis, or if you forgot to pay a debt you owe, collection debts can happen. They can significantly affect your credit score. It is, however, possible to get them removed and mitigate the negative impact of such debts by reaching out to the creditor for a pay-for-delete arrangement.
A pay-for-delete letter should be written in a professional, organized, and a well-structured manner. The letter should be concise and with accurate information.
What should be included?
- Your full name and address
- Creditor’s full name and address
- Account number/reference number
- Alleged amount owed
- A brief explanation of the set of circumstances that caused you to default on your debt
Pay For Delete in Three Easy Steps
There are various ways you can get a negative mark on your credit report removed by the creditor. When you are looking to write a pay for delete letter, here are three easy steps you should take:
- Step 1: The first step is finding out which creditor you owe the debt. In most cases, they will contact you to try and get you to pay the debt. If you can’t recall the debt or if they fail to contact you, you can check on your credit report; they should be listed on it. You can also reach out to the organization that loaned you money they will most definitely have a record on file.
- Step 2: The next step is to write a pay-for-delete letter. You can download an already preformatted template from here to use when drafting your letter. If you agree to pay the full amount or agree to a payment plan, then the creditor will, in most cases, remove the negative listing on your credit report.
- Step 3: If the creditor agrees to have the negative mark removed, keep the pay-for-delete letter on file and pay the agreed amount. You can later use the letter to remind the creditor of the agreement they made if the negative mark is still on your credit report.
How Does a Pay-For-Delete Letter Work?
A Pay-for-delete letter is your opening bid in a negotiation to have your debt settled and a negative listing cleared from your credit report. When the negotiation works, it’s usually because the creditor or the collection agency has determined that the amount you are offering to pay to settle the debt is enough to motivate them to have your credit report cleared of any negative marks from them.
Do Pay-For-Delete Letters Work?
A pay for delete letter is a letter sent to a creditor requesting them to remove a negative mark from your credit report. In most cases, the letter is sent after attempts by the debtor to negotiate a debt. Before removing a negative mark on your credit report, the creditor will require that you pay your debt in full or agree to a payment plan.
What You Should Do If Your Pay-For-Delete Letter is Rejected
In some cases, the creditor may reject your pay-for-delete request, and you may be left wondering what to do next. A creditor may not find value in complying with your proposal. It is, however, worth a try, and having a positive outcome is always great.
If your pay-for Delete is rejected, you still have several ways in which you can remove a negative listing on your credit report under the Fair Credit Reporting Act credit laws.
You can also offer to negotiate a debt settlement plan with the creditor without any conditions. In most cases, the creditor will accept any model presented to them to have their money repaid, whether partly or in full.
Tip: Depending on the amount you are offering a creditor, the more likely they will accept your request to clear your credit report of any negative marks. You should offer a reasonable amount if you can’t be able to pay the debt, you can agree to a payment plan.
If your pay-for-delete request is rejected, you should consider offering to pay the full amount. In doing so, the creditor may decide to have your credit report corrected.
Pay for Delete Letter Samples & Templates
Sample 1: Pay For Delete Letter
To whom it may concern,
This letter is in response to your mail regarding the amount owed I am considering to pay this debt fully. Kindly be aware that I acknowledge no responsibility for this debt since I have not received any information to verify this debt.
I can offer a full settlement of the debt in exchange for the following conditions:
I am willing to pay ($ XXX debt) in exchange for your total cooperation to remove all the information regarding this debt from collecting agencies within a stipulated number of days of payment. Agreeing, on these terms, I will then wire the certified amount of money to the given account number.
The agreement will not be discussed to third parties; you will not try to transfer this debt to another collecting agency.
If you accept this offer, kindly prepare a letter that you have agreed on the terms, it should be assigned with authorized agents; this letter will act as a contract that the debt was settled.
If I do not receive any feedback within fifteen days of the calendar, I will draw out this offer and follow up with debt verification.
Please forward your written agreement to the address given below (provide address) at your convenient time look forward to finding a solution to this issue quickly.
- MS Word
Sample 2: Pay For Delete Letter
2348, Hank Street
Austin, TL 10408
October 10, 2008
Gallo Collection Agency,
69048, Abrams Street.
Texas, 1040 Old Mutual.
Re: Account Number: 2346-1286-2346-6010
Debt owed: $250,000
To whom it may concern,
This is to inform you about the offer to settle the debt owed to our mutual benefit, about the account named above.
I dispute the validity of the allegedly owed amount; however, there is a possibility of me paying the debt in exchange for the following conditions listed below, all in a written document:
• You agree to delete all the references related to this account from the credit reporting agencies within 15 days of the calendar of receipt of payment of this debt.
• Third parties not involved in this whole process will not know any information concerning the above account.
• You will not transfer the account information to another collecting agency.
After I receive a written document from you regarding the conditions listed above, as an agreement to it, I will pay $220,000 via wire transfer as a show of goodwill.
However, if I do not receive any approval letter within 15 working days, I will withdraw this offer and follow up with other methods.
I look forward to your prompt response. Please mail your agreement to the address given above.
- MS Word
Frequently Asked Questions
If your pay-for-delete request is accepted by the creditor and they remove the delinquency from your account, you could witness a slight increase in your credit score.
No, it is not illegal. However, major credit bureaus, e.g., Equifax, TransUnion, and Experian, frown upon the practice as it impacts the reliability of the companies’ credit score.