What Is a Pay for Delete Letter?
Sending a pay for delete is a type of negotiation that involves a creditor agreeing to delete a debt from a person’s credit report if the debtor agrees to pay the amount due or pay a lower agreed-upon amount.
You will generally reserve this type of strategy in circumstances where you know the debt is accurate or the collection agency has already validated the debt.
How Does a Pay for Delete Letter Work?
A pay for delete letter is your attempt to leverage a payment in exchange for the creditor removing the negative entry on your credit reports.
Your goal is to get a written agreement from the collection agency, where they agree to accept your full or partial payment of the debt in return for removing the collections from your credit history.
Note: It’s important to remember that while you send and await a response to your pay for delete letter, the 30-day limit provided by the FDCPA for debt validation is ticking.
Pay for Delete Template
You can adjust the pay for delete letter template as needed, but you still need to include some key points such as;
- The payment amount you are offering
- Your payment conditions
- The expected turnaround time (amount of days)
- When your offer expires (how many days)
[Your name & address]
[Collection agency name and address]
Re: [Account Number]
To Whom It May Concern,
This letter is in response to your latest correspondence related to account number [input account number]
Please note that I accept no responsibility for ownership of this debt. I would like to settle the matter for our mutual benefit. However, I retain all rights to request a complete debt verification and validation from your agency in writing.
I am willing to offer a settlement on the alleged debt in exchange for your written agreement to the following terms:
- The debt will not be sold nor transferred to another creditor.
- The payment will be accepted as satisfying the debt in full (following the reception of the agreed-upon amount).
- The payment will not be listed as a “paid collection” nor a “settle account.”
- All references to the account will be deleted from my credit reports from each of the credit reporting agencies (Experian, Equifax, and TransUnion).
I am prepared to pay [debt in full or $$$ as settlement for this debt] in exchange for your agreement to the above-listed terms within ten calendar days of receipt of payment.
Please note that this is not a promise to pay. This remains a restricted settlement offer, and you must agree in writing to the above-listed terms for any payment to be issued. Should you agree, please prepare a written agreement on your company letterhead. This written agreement should be signed by an authorized representative of [collection agency name].
Once I receive your signed agreement, I will pay [$xxx] via [money certified cashier’s check/money order]
After 10 calendar days, the terms of this offer will expire. In the event that you are not agreeable to the terms I have offered, I will proceed with my rights to request a complete debt verification and validation.
I look forward to a timely and positive resolution of this matter.
Your name [typed]
What To Do if Your Pay for Delete Letter is Rejected?
When drafting a pay for delete letter, it’s important to remember that they are not always successful.
Debt collectors are unfortunately not always open to negotiations, and you may have to look into other options.
- If you decide to pay off the debt, you can follow up with a goodwill letter. It’s a second attempt at trying to get that collection off your credit history.
- You can try to negotiate a settlement, although this would be more towards trying to reduce your payment amount.
- If you are approaching the reporting time limit, you can choose to wait it out.
- Seek professional help to improve your odds of getting your collections removed.
While having your offer refused is not the ideal situation, luckily, there are no ramifications to your credit score for making such an attempt.
If you feel you need more guidance than you can find online, a credit repair specialist like Credit Saint can help handle matters for you. A free consultation can help you decide what the next best step is.
Similar Letter Templates
About the author
Clara is the founder of Credit Rise Up, an entrepreneur, personal finance expert, and credit repair enthusiast. She’s committed to helping her readers get on the right track and take actionable steps towards improving their credit by using the experience that allowed her to join The 800 Club. Find out more.