How To Write A Pay-For-Delete Letter
If you’re considering a pay-for-delete letter, here’s some guidance on how to write one.
Pay-For-Delete Letter Template
An example pay-for-delete letter that you can fill in with your details is below:
[Your Name]
[Your Address]
[City, State and ZIP]
[Name of Creditor/Collection Agency]
[Creditor/Collection Agency Address]
[Creditor/Collection Agency City, State and ZIP]
[Date]
Re: Account Number [0123456789]
Dear [Creditor/Collection Agency Name]
I’m writing you regarding your recent letter about account number [0123456789]. I’m willing to settle my debt with you in the amount listed below provided you accept the following terms:
Your acceptance of this payment shall release me from further responsibility for the debt.
You agree not to mark the debt as a “paid collection, “settled account,” or “paid as agreed.”
You will remove any and all references to this collection account from any credit reporting agencies (including but not limited to, Equifax®, Experian™ and TransUnion®) to which you have validated the debt.
In exchange for your cooperation, I’m willing to pay [the full balance/$XXX to settle this matter]. No promise is being made to pay other than under the terms of this agreement. If you haven’t responded within [X] days, I’ll assume you’ve rejected the offer and rescind it.
If you accept, please send a letter back signed by an authorized representative under your letterhead. Once received, I will pay [$XXXX] by [cashier’s check/money order/wire transfer].
I appreciate your time and attention in this matter and look forward to your response.
Sincerely,
[Your signature]
[Your name]
Tips For Writing A Pay-For-Delete Letter
Before you write your pay-for-delete letter, we recommend doing all of the following:
Make sure the debt is real. There are numerous debt collector scams out there. If the “collection agency” you’re talking to is referencing debt that you don’t recognize or that you know is either current or long since retired, your antennae should go up. Politely tell them to send you a letter. Any legitimate collection attempt requires you to be given response time. Even if you’re unsure, this buys you time to contact the original creditor directly and verify the status of your account.
Wait for the debt validation letter. Debt collectors are required to give you all the information about your debt and your options for dealing with or disputing it. This will typically be in the form of a debt validation letter. You’ll also have exactly how much you owe in writing before doing anything by waiting.
Do your research on the collector. You should know whether the collection agency is reaching out on behalf of your original creditor or if they’ve bought the debt from the original creditor. If the debt has been purchased, it’s typically bought for something less than the original amount owed. Because of this, they may be more likely to settle with you for less than what you owe, but more than what they paid.
Understand your leverage. In some cases, state law imposes a time limit on how long collectors have to actually collect. If the time limit in your jurisdiction is near, the creditor may be willing to remove the collection from your report in exchange for a smaller payment.
