A pay-for-delete letter can be the first step to resolving a collection account and getting it off your credit report. This free sample Pay-for-Delete letter will help you get started.

While a Pay-for-Delete letter isn’t foolproof, it often works, and it won’t cost you a dime. If successful, it can get a collector off your back and significantly benefit your credit score.

Key Takeaways

  • A pay-for-delete letter may help you resolve a debt and clear your credit report. It isn’t guaranteed to succeed but it’s worth a try.
  • You are offering a deal. You will offer to pay all or part of your debt if the creditor removes your delinquency record from your credit report.
  • Strike the right tone. Be apologetic and positive, explain your corrective actions, and hint at future business with the creditor. This is important if you are dealing with an original creditor, not if you are dealing with a collection agency.
  • It may not work. A creditor has no obligation to accept such a deal, and the credit bureau has no obligation to stop reporting a legitimate account.

Free Pay For Delete Template

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    If you write one that succeeds, please email it to us. We’d love to hear what worked for you!

    Pay for delete letter template

    ⚠️ Please Read Before Using This Template!

    This template must be customized to fit your circumstances. You will see instructions for the information that you will need to insert. These instructions are indicated by ____ text.

    Be sure that you fill in all required information and delete the ____ text before you send the letter.

    Your letter will be less effective if our instructions are still visible!

    Why You Need An Agreement

    Having a collection on your credit report is a credit score killer, but you may get it removed with a successful Pay-for-Delete letter. You offer to pay a settlement if the collection agency agrees to delete the negative collection record from your credit records.

    What Is A Pay for Delete Letter?

    It’s exactly what it sounds like. You offer to settle a debt. If the collection company agrees to what you proposed in your letter, then they will delete the negative collection record from your credit report upon receiving payment.

    👉 A Pay-For-Delete letter is sent to a creditor or collection company that you owe money to and has filed a negative record against your credit.

    You must use specific language when making an offer on an open collection account because the letter could be used against you in a lawsuit. If the collection company accepts your offer, be sure to get an agreement in writing or by email. Once you have paid the agreed-upon amount, the collection company will then delete the negative collection records.

    Strategies To Include

    In most cases, when a pay to delete letter is appropriate, it involves an outstanding debt that is in collections.

    The company attempting to collect this debt will usually have legal remedies available such as a civil lawsuit.

    So if you send them a letter admitting that you owe the debt, they could use that as evidence in a lawsuit against you.

    As you write a letter, keep in mind that you must choose your words carefully.

    Because if you don’t, the following things could happen…

    1. You could mistakenly ratify the amount claimed.
    2. You could extend the legal statute of limitations.
    3. You could extend the amount of time the collection could be on your credit report.
    4. You could inadvertently open yourself up to a lawsuit.

    If you’re not sure how to do it, you can speak with one of our top rated credit repair companies about preparing a letter for you. The credit repair business has earned a bad reputation, and scams are rampant, but there are some reputable companies, and we’ve identified several for you.

    Are Pay For Delete Letters Illegal Or Unethical?

    Some people have a problem with these arrangements because they say it is unethical to deny a debt that was yours.

    If you are still dealing with the original creditor, you may feel obligated to pay the full amount of your debt. If you are dealing with a collection agency, the party you owe is no longer in the picture. The collection agency bought the debt for an average of 4 cents for every dollar.

    They can settle with you for much less than you owe and still make a tidy profit.

    There is a more serious question. Credit bureaus are legally obligated to provide an accurate report of your credit history. Deleting a collection account could interfere with a subsequent creditor’s ability to evaluate your credit record.

    For that reason, credit bureaus frown on pay-for-delete agreements. Some collectors won’t offer them because they are afraid of repercussions from the credit bureaus.

    Collection Companies Addresses

    Portfolio Recovery

    4330 La Jolla Village Dr, San Diego, CA 92122

    Portfolio Recovery Associates

    4330 La Jolla Village Dr, San Diego, CA 92122

    Enhanced Recovery Company

    8014 Bayberry Rd, Jacksonville, FL 32256

    Diversified Consultants

    10550 Deerwood Park Blvd #309, Jacksonville, FL 32256

    Jefferson Capital Systems

    16 McLeland Rd, St Cloud, MN 56303

    IC Systems

    444 Hwy 96 E, St Paul, MN 55127

    Stellar Recovery

    4500 Salisbury Rd, Ste 105, Jacksonville, FL 32216

    Phoenix Financial Services

    PO Box 361450, Indianapolis, IN 46236

    Convergent Outsourcing

    PO Box 9004, Renton, WA 98057-9004

    National Credit Systems

    P.O. Box 312125, Atlanta, GA 31131

    Hunter Warfield

    4620 Woodland Corporate Blvd, Tampa, FL 33614

    Cavalry Portfolio Services

    4050 E Cotton Center Blvd, Phoenix, AZ 85040

    Pinnacle Credit Services

    7900 MN-7, St Louis Park, MN 55426

    Ad Astra Recovery Services

    7330 W 33rd St, Wichita, KS 67205

    GLA Collections

    2630 Gleeson Ln, Louisville, KY 40299

    Capital One

    P.O. Box 30279, Salt Lake City, UT 84130-0279

    Midland Funding

    350 Camino De La Reina, San Diego, CA 92108

    IQ Data International

    P.O. Box 340, Bothell, WA 98041-0340

    The Thomas Agency

    PO Box 6759, Portland, ME 04103

    Southwest Credit Systems

    4120 International Pkwy #1100, Carrollton, TX 75007

    Caine And Weiner

    5805 Sepulveda Blvd 4th floor, Sherman Oaks, CA 91411


    700 Longwater Dr, Norwell, MA 02061

    What To Do If Your Settlement Letter Does Not Work

    If your pay for delete letter does not work, you should offer a settlement even without pay for delete agreement. The account will still be on your credit record, but once it’s paid, its impact on your credit score will diminish.

    More important, you’ll get the debt collector off your back, resolve the account, and make sure you won’t face a lawsuit. Remember that collection agencies pay an average of 4 cents for every dollar of debt they buy. They can afford to settle for much less than you owe and still earn a profit. Start low, negotiate up, and make the best deal you can!

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