Pay for Delete Letter for Collection Agency Accounts

Paying a collection account does not help your credit score. Unless you get the agency to agree to it in exchange for payment. This is called pay for delete.
Written by Gina Pogol
Financial Expert
Managing Editor
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The only way to improve your credit score when paying a collection (for most credit scoring models) is to convince the agency to delete your account in exchange for payment. Credit experts call this “pay for delete.”

You can use this sample letter to create your own note to collection agencies. Negotiate in writing and don’t send money until you are okay with what you’re getting in return.

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Sample Letter to Send to Collection Agencies

Name of Collection Agency Address of collection agency

Re: Collection Account for Original Creditor Account Number Amount: $XXX.XX

To whom it may concern:

This is to inform you that I dispute the validity of the debt referred to above.

I am willing to pay this account IN FULL (or whatever amount you plan to pay) if you agree to immediately delete the account from all credit reporting agencies to which you report, and follow through with this deletion within 10 days of receipt of the agreed-upon amount.

My sole purpose is to remove the item from my file. Do not interpret this letter as recognition of the debt or acknowledgment of liability for the debt.

If you accept the terms of this agreement, I will send the certified amount of $XXX to your collection agency.

Your agency should delete all information regarding the account from my credit files within 10 business days from the receipt of the payment, as mentioned above. The terms of this agreement will not be discussed with anyone but the original creditor. No third party will be informed if contacted and no acknowledgment of the debt, any kind of payment, or settlement will be discussed if I am contacted by the Reporting Agencies.

Following the acceptance of the agreement, please prepare a letter on your company letter head unambiguously agreeing to the aforementioned terms and conditions and have it signed by your agency’s authorized signatory. This letter will imply a legal contract, enforceable under my state law.

If I do not receive an approval letter within 15 days of your receipt of this letter, I will withdraw this offer.

Please communicate regarding this account to the address mentioned below.

Your Name Your Address State Zip Code

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About Author
Gina Pogol
Gina Freeman writes about personal finance and has been featured on MoneyRates, The Mortgage Reports, MSNMoney, Fox Business, Forbes, The Motley Fool, and other fine websites. Her background includes tax accounting with Deloitte, over 20 years in mortgage sales and underwriting, systems consulting for Experian, and several years in bankruptcy law. Gina enjoys helping consumers make confident and intelligent financial decisions.
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