Pay to delete letter ? Will it work?

its_only_a_game_show

Hi guys & girls


Im after some advice,

Im looking to apply for a mortgage in the new year. My credit history is fine (everything always gets paid on time and previous loans all paid off and settled) however i have one blemish to which i believe could effect everything.

In about 2007 I had a default on a orange phone bill to which was passed over to arrow global. I didn’t at first remember this so I asked them to send me proof of the debt i.e a signature of the credit agreement but they recently responded to me with a account number and said that because its a air time agreement it’s not required to provide this information and it’s not regulated under the credit agreement act 1974.

So i am not planning on sending them a letter asking for a ‘pay to delete’ agreement where by if i pay the outstanding balance of £300 they will delete all evidence of my credit report.

As the default is from 2007 it will effectively drop of in 2013 (not too long) so in the letter i am worried that by sending this letter it will move this default date forward. To avoid this I’m going to say i do not in any way agree that the debt is mine however to move things forward i shall make the full payment.

Does anyone thing i should send this letter and what are my chances of them doing this?

Any help appreciated on this would be great. Thanks in advance

Tixy

The default cannot be altered from the original date regardless of what you do now. A default date is a fixed point in time.

You can certainly try writing to them to ask them to remove the default in return for full payment, this occasionally seems to work with mobile phone companies / catalogues but not with banks.

I'd try getting written confirmation from them that the default will be removed before you make the payment. If they won't agree to remove it then its still worth paying up, as a settled default will look much better on a mortgage application than an outstanding default.

Sometimes people have been successful in getting a default removed but then end up with a credit account entry on their file with lots of missed payment markers that then stays on file much longer (as it then stays on for 6years from the date the account was settled).

its_only_a_game_show

I]Sometimes people have been successful in getting a default removed but then end up with a credit account entry on their file with lots of missed payment markers that then stays on file much longer (as it then stays on for 6years from the date the account was settled).[/I][/B][/I][/I][/I]

would they not just delete all record information ? wouldn't i add in my letter that i also do not want any credit entrys left on my report. are you saying once i pay arrow global, the orange payments will come back up showing on my report? i have never heard of this and am now concerned

amorge

I had a default removed a couple of weeks ago. It was virgin media and an amount I was 100% sure I didn't owe, they couldn't provide me with the bills, letters re default etc so removed the default. My recent credit file still shows Virgin Media but has no markers for late payments and no evidence of the default, however, the settled date is Nov '11 (even though account was closed in 2008).

I would imagine the same sort of thing would happen, it would still be on there

its_only_a_game_show

they have a so called account number for me and i cant see them removing it anytime soon so i am thinking of sending the below letter. your thoughts welcome and advice?

Date:

Re: Account Number XXXX-XXXX-XXXX-XXXX

Dear Collection Manager: This letter is in response to your [letter / call / credit report entry] on [date] related to the debt listed above. I wish to save us both some time and effort by settling this debt.
Please be aware that this is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below.
I am aware that your company has the ability to report this debt to the credit bureaus as you deem necessary. Furthermore, you have the ability to change the listing since you are the information furnisher.
I am willing to pay [this debt in full / $XXX as settlement for this debt] in return for your agreement to remove all information regarding this debt from the credit reporting agencies within ten calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $XXX payable to [Collection Agency] in exchange to have all information related to this debt removed from all of my credit files.
If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. This letter should be signed by an authorized agent of [Collection Agency]. The letter will be treated as a contract and subject to the laws of my state.
As granted by the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. If I do not receive your postmarked response within 15 days, I will withdraw the offer and request full verification of this debt.
Please forward your agreement to the address listed above.

Sincerely,

Your Name

Tixy

Thats a USA template, $, states etc. And the Fair Debt Collection Practices Act is a USA law

I presume you are in the UK?

KingElvis

If the default is correctly registered then there is little or no chance of getting it removed.

chanz4

you cant buy yourself a good credit file, also as others have said it does not apply to UK regs

its_only_a_game_show

hi, im a bit confused now as i have been reading around on the net and it seems to tell me quite a bit that as my defualt it less than £400 the company may remove it as a gesture of good will. the bargaining chip that i have is that if they dont accept it they wont get any money. i see it as a win for both parties. is there a uk template letter that would work for this? i cant see the harm in trying as there is no other way of getting it removed. thanks in advance.

MrsTinks

It used to be some years ago that some companies were willing to include in the negotiations that they would remove the default... as far as I'm aware that has been stopped but there is certainly no template for it... And I frankly don't know if they ever actually removed any of the defaults... The US may be somewhat different which is where your template that you posted came from I think?

The problem you will have is that you are intending to send them a letter saying "I'll pay but only if you clean my file - if you don't then I won't pay you..." which unless I have lost the plot is not only admitting the debt but also that you can infact pay it...
SOME creditors will go for a CCJ for less than £400 - imagine the courts mood when you try to explain that you can't pay the CCJ and the creditor presents that statement from you?

You are treading very dodgey waters and my advice would be to pay it, get it marked as settled as it will count for far less, and start rebuilding your credit history. My husband had a default on a joint account with his ex - initially for something like £30 (3 months of fees for the account they had - they'd closed the account but the banks fees were due and they didn't tell them when they closed the account - they then sent debt letters which as his ex's name was first on the letter went to her due to RM redirect and she failed to open them or tell him about it...) - by the time he found out it was £80, we paid it off and got it marked as settled and remortgaged a full month later... at a very good rate. Ok it was before the crunch but it's not impossible!

its_only_a_game_show

hi mrs tine , regarding you saying ther are no default template letters however i have just done a quick search and came across several. they all seem very good and responsible. i dont think they came from the USAunless they use the 3 main credit bureaus.

Im not admitting the debt but im simply saying to save going through the whole courts process i would be happy to pay it as if not i wont be able to get my mortgage.

im sure a lot of people have told me this system has worked for them,