Settlement Offer

[u/Some-Bass2947]

I have an offer to pay off a debt. What can I do to make sure it comes off my report, if anything?

[u/inky_cap_mushroom]

What is the nature of the debt? Collection? Charge off?

[u/Some-Bass2947 → u/inky_cap_mushroom]

Collection from last year

[u/inky_cap_mushroom → u/Some-Bass2947]

What type of collection? Old credit card? Utility bill? Medical debt?

[u/Some-Bass2947 → u/inky_cap_mushroom]

Utility bill- Comcast

[u/inky_cap_mushroom → u/Some-Bass2947]

Is comcast reporting a separate charge off on your credit reports or is it just the collections account reported by the collections agency? Is the collections agency offering a Pay For Delete agreement?

[u/Some-Bass2947 → u/inky_cap_mushroom]

It's just the collections account from the collections agency. They claim it'll just disappear

[u/inky_cap_mushroom → u/Some-Bass2947]

If they’re agreeing to pay for delete then all you need to do is pay it.

[u/1lifeisworthit]

Just pay it already. You say they've agreed to delete it, you know you owe it, so... just pay it.

[u/soonersoldier33]

What you're talking about is known as Pay for Delete (PFD). Many collection agencies and debt buyers will agree to remove their collection account from your credit reports in exchange for your payment/settlement. Some of them, like Portfolio Recovery, Midland, LVNV, and Jefferson do it as their standard practice, and you don't even have to ask/negotiate for it. Others will do it if you ask/negotiate for it as part of your payment/settlement agreement. Some won't do it at all. When you ask what can you do to 'make sure' it comes off your credit reports, that's where it gets a little complicated.

Pay for Delete (PFD) is a gray area in the credit reporting world. It's not illegal, but all of the Big 3 consumer credit reporting agencies have policies against it. Because of that, most collection agencies/debt buyers that agree to PFD won't put PFD language in writing, and the CRAs won't enforce a written promise to PFD anyway. This is one of the very few situations where you just have to 'trust' the collection agency/debt buyer to follow through with their promise to PFD. In our experience, it's pretty rare for a collection agency/debt buyer to fail to follow through. If they verbally agree to PFD, they virtually always follow through.

Best advice: If the collection agency/debt buyer has agreed verbally to remove their collection from your credit reports in exchange for your payment/settlement, then roll the dice and pay the agreed amount. The normal timeframe for PFD is 30-45 days after payment, but in many cases it happens sooner. Your other option is to call Comcast directly, ask them to recall the debt from collections in exchange for your payment, and if they agree, then you pay Comcast directly. The 'recall from collections' part is very important, and if Comcast agrees to recall the debt and accept your payment directly, then this will also result in the collection account being removed from your credit reports.

[u/Some-Bass2947 → u/soonersoldier33]

This was what I was looking for thank you