Sample Letter – Pay Debt Make It Disappear

Many people have some adverse credit items on an old account, or collection… and those accounts are really pulling credit scores down.The question becomes, can you get those accounts paid and the negative credit taken off?  The answer is MAYBE.  Here’s a sample letter you can use, that says (in essence) I’ll pay this debt if you remove all record of it from my credit report.My experience is that the debt might get removed by one or two of the agencies – but at least one (normally Trans Union with what I’m seeing) will not remove the debt – but hey, I think this is a GREAT thing to try!Collector’s NameCollector’s AddressCollector’s City, State ZipDate:Re: Account Number XXXX-XXXX-XXXX-XXXXDear Collection Manager:This letter is in response to your [letter / call / credit report entry] on [date] related to the debt listed above. I wish to save us both some time and effort by settling this debt.Please be aware that this is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below.I am aware that your company has the ability to report this debt to the credit bureaus as you deem necessary. Furthermore, you have the ability to change the listing since you are the information furnisher.I am willing to pay [this debt in full / $XXX as settlement for this debt] in return for your agreement to remove all information regarding this debt from the credit reporting agencies within ten calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $XXX payable to [Collection Agency] in exchange to have all information related to this debt removed from all of my credit files.If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. This letter should be signed by an authorized agent of [Collection Agency]. The letter will be treated as a contract and subject to the laws of my state.As granted by the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. If I do not receive your postmarked response within 15 days, I will withdraw the offer and request full verification of this debt.Please forward your agreement to the address listed above.Sincerely,Your Name

• Remember to put your information in the bold areas.
• Send the letter only if you have the ability to pay the full amount listed as soon as the collection agent agrees to your offer. You will likely have to send this letter, and make phone calls SEVERAL times before you find a company representative who has the authority, or the willingness to do this.
• Send the letter and your followup payment via certified mail with return receipt requested.
• Make sure you keep a copy of the letter for yourself, and any notes and dates of who you spoke to, what number you called, and what time it was.

Getting your FICO score up, especially if you are going to apply for a job, open a checking account, apply for a car loan or a HOME LOAN is critical. The minimum score requirements continue to go HIGHER!!  For a mortgage loan, you currently need a MINIMUM score of 620 for a purchase… For a refinance, with 20% equity – you need AT LEAST a score of 680 for it to make sense!

If you are considering a mortgage loan – please call Steve and Eleanor Thorne, First Financial Services, Inc. 919-851-3031 x 104