negotiating debt payoff

[Solar Specialist]

Well I am trying to clea up my credit and am not exactly sure what to ask for. I am willing to pay off my debt in full but need to be it is marked the correct way where it doesn't hurt my credit rating even though I paid it. What do I ask for exactly? I know there is some number system that they use even if you pay the debt off completely. Someone I know paid his alltel bill off but still received a "9" which is the same as when he hadn't paid any of it. So if anyone knows exactly how credit and credit reports work please help me out. Thanks alot.

[_Charles_]

Well I am trying to clea up my credit and am not exactly sure what to ask for. I am willing to pay off my debt in full but need to be it is marked the correct way where it doesn't hurt my credit rating even though I paid it. What do I ask for exactly? I know there is some number system that they use even if you pay the debt off completely. Someone I know paid his alltel bill off but still received a "9" which is the same as when he hadn't paid any of it. So if anyone knows exactly how credit and credit reports work please help me out. Thanks alot.

Probably a question for the investment/finance forum, there is a thread there about clearing up your credit.

Charles

[Nikon]

Moving to proper forum...

[John]

send them this

Date:
Creditor Address
City, State, Zip


Re: Account Number


Dear Sirs:


This letter is an offer to amicably settle the above account. It is not to be construed as an acknowledgment of my liability for this debt in any form.


I will pay your company the amount of $____ as full settlement of this account.


If you accept this agreement, I will send you a money order or certified cashiers check for the settlement amount of $______ in exchange for a full deletion of all references regarding this account from my credit profile and full satisfaction of the debt. This agreement is binding and will be void should you not hold up to your end of the agreement. Furthermore the debt will be deleted from my credit profile at all three credit bureaus or the bureaus your company regularly reports to in the course of doing business.


If you agree to the above, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order or cashiers check in the amount stated above.


Notice: This agreement is restricted. This is not a renewed promise to pay but rather a restricted settlement offer only. By not signing below, you agree that the debt has not been renewed nor has any concrete written agreements been exchanged.


Creditor’s Authorized Signature: _____________________________ Date:____________


STATE OF_________________
COUNTY OF ______________________

Personally appeared before me, ________________________ the undersigned, a Notary Public in and for said County and State, personally appeared_________________________, with whom I am personally acquainted (or proved to me on the basis of satisfactory evidence), and who upon oath acknowledged that himself/herself to be________________________ of so and so collection agency, the within named bargainor, and that he/she as such_______________________, being authorized to do so, executed the foregoing instrument for the purposes within executed within the instrument for the purposes therein contained, by signing the name of the company by himself/herself as _________________________.

Witness my hand and seal, at office in _______________ name of your state, this day of _______________ 2003.

_____________________________________ My commission expires: _____________________________
NOTARY PUBLIC


Do NOT speak with them via phone, as you have no record of any promises made. And trust me, once it goes to a collection agency, they will tell you anything you want to hear so that they get paid. You have to understand how they work: they buy your debt for 1/3 - 1/2 of its value, often times less. The only thing they care about is getting their money. The thing they fear most is a law suit. So promise them what they want while keeping it all very legal, professional, and cold, and demand what you want in return. If you do this in writing, they will likely comply. If you negotiate over the phone, you have nothing to prove that promise was made, and as soon as they have their money they will say "fuck you". How do I know? This happened to me on a collection account

[_Charles_]

NIce letter...

[Solar Specialist]

Now does this require them to only make it so I don't owe them anything? Because just the fact that it went to collections will hurt my credit right? Is there anything else I can ask for that will make it so this debt looks to be paid off just as if it had been prior to going in to the collections agency? I just don't want to pay them off just for it to go away. Rather try to get it to help if possible. Thanks again.

[_Charles_]

If a negative comment has been placed on your report, you lost points off of your credit score. Simply removing this 'negative' item DOES not automatically restore teh points lost. NOt fair, I know, but that's the way it is. Either way, you want deragatory marks removed from your credit report if possible.

CHarles

[Solar Specialist]

Well I would like to add to that letter something about negative remarks and adding that it has been paid in a timely manner. Is that all I should add and what exact wording will sound correct to them do you think?

[John]

once it goes on your report, its negative even if it shows paid. The fact that it went to collections is bad. Your ideal scenario is to have them remove any reference to them from your credit file.

[Solar Specialist]

Now once it goes to collections, does the original creditor still have you listed on your credit report as well as the collections agency? If not, does the collections agency have the power to make the debt look as if it is a positive debt paid off? I just think that if they do, they probably will agree to just get any money they can get.


Oh and can't I get a free copy of my credit report like once a year or something? If so, where do I go for that? Thanks.

[Illswyn]

www.annualcreditreport.com is the site you want for a FREE credit report, without any free 30 day trial offers.

I got my report from Equifax, will probably do the other 2 in the next few months.