Pay for Delete Letter

We all incur debt – credit cards, car loans, personal loans, and mortgages. Either due to mismanagement of your financial affairs, job loss, or sickness, many people find they are unable to repay their debt within the agreed timeframes. Creditors have to manage their cash flow as well and will make attempts to collect the debt or sell the debt to collection agencies. Once this stage is reached, a report is made to credit rating agencies, and your credit score plummets. Even one missed monthly payment can find its way onto your credit rating and negatively impacting your score.

There are multiple methods of dealing with debt. If it is an error, the error should be disputed following procedures that each credit bureau covers on their websites. You may also request the debt to be verified, and if the debt collector cannot provide information supporting the debt, you are not required to repay the debt. Paying off your debt in full has a much more positive impact on your score and saves you the hassle as well. Finally, you can wait it out; however, the reports, etc., will remain on your credit score for seven years or more. As long as you do not need to apply for a loan of any type, including credit cards, this approach may be considered.

A pay for delete letter is another approach to consider, and we will provide the details in the following narrative.

What is a Pay for Delete Letter?

A pay for delete letter is an approach that debtors can use to attempt to improve their credit report by paying some or the total amount owed on debt in exchange for the creditor or debt collector removing the item from your credit score report.

You may propose to repay a portion of the debt in exchange for removal, however, the amount you choose to repay is a negotiation and most debt collectors are looking for a return above 40%.

A pay for delete letter does not always work. The original creditor may not be interested in negotiating the debt, preferring to sell the debt to a collection agency. The collection agency may not be allowed to write down the debt, depending on their agreement with the original creditor.

Once your debt is in collections, a report is generated to the credit bureaus and can remain on your credit score for up to seven years. Obtaining a loan with a low credit score is more expensive and more difficult to arrange.

How to Write a Pay for Delete Letter?

The pay for delete letter is a negotiation tool. As with all negotiations, you should collect all of the information associated with your debt and what the debt collection agency is hoping to obtain from the negotiation. Understanding what they paid to take over the debt collection is a critical piece of information that will help you in your discussions.

Develop your strategy and then reflect your strategy in your letter following the template and format of the letter. Your objectives should include:

  • Removal of the collection account from your credit score
  • A better credit score and
  • Possibly a reduction in the amount you pay on the debt to have it removed.

The debt collector is aiming to make a profit on the transaction. They paid a specific amount to take on the debt. They need to collect this amount, cover administration costs and make a profit.

You may also decide to ask a credit repair company to assist, however, they will charge a fee for the service. You can also use the templates provided in this post, however, take the time to adjust the content to meet your situation and debt.

Pay for Delete Letter Format

(Your Full Name)

(Your Full Address)

(Collection Agencies Name)

(Collection Agencies Full Address)


Account Number: (xxx-xxx-xxx-xxx)

Dear (Name, Title or keep it general e.g. Collection Specialist)

Paragraph 1 – Introduction

Paragraph 2 – Your proposal

Paragraph 3 – Terms and conditions




(Your name printed)

Sample Pay for Delete Letter

(Your Full Name)

(Your Full Address)

(Collection Agencies Name)

(Collection Agencies Full Address)


Account Number: (123-456-789)

Dear Collection Specialist

I am sending this letter in response to your recent letters related to the account number above. I would like to discuss a one time offer to settle this debt which is alleged to be $________. This offer does not acknowledge my liability for the debt, since I have not received debt verification from your company.

Your company can record this debt with credit bureaus and the ability to change the record since you are the provider of the information.

I am offering to pay ($XX.XX as settlement for this debt OR pay this debt in full) in return for your agreement to have all information removed from all credit reporting agencies within ten business days of payment of the debt as agreed.

Please respond in writing, agreeing to these terms. Once I receive the agreement, I will forward a certified payment in the amount of ($XX.XX) to (Collection Agency) in exchange for all of the details and information about to this specific debt removed from all credit agencies.

You agree once you have accepted this offer to not discuss the details of this offer with any 3rd parties, except for the original creditor. Please respond using your company’s letterhead and signed by an authorized agent of (collection company). This letter is subject to the laws of my (State) and will be considered a contract between us.

The Fair Debt Collection Practices Act provides the right to dispute the alleged debt. If a response is not received, postmarked within (XX) Days, the offer is withdrawn and I request a complete verification of this debt.

Please send all correspondence including your agreement to the address indicated above.


I can be reached at – Phone – XXX-XXX-XXXX and email Johndoe @ ISP . com. Please contact me through one of the following at your convenience.



(Your name printed)

Pay for Delete Letter (Word Template)

Pay for Delete Letter

Tips for Sending a Pay for Delete Letter

  • Have all of your details concerning the debt together – the original date, the creditor, the amount, and all previous correspondence concerning the debt. You should also have all of the details concerning the debt collector and details of when they took over the debt.
  • Make sure the debt is yours and not someone else’s. You may need to send a letter requesting verification.
  • When negotiating with the debt collector, remember the debt collector is looking to make a profit on the debt they purchased from the creditor. If you can find out how much they paid to purchase the debt and offer something a little higher to entice them to take the deal offered, they may accept the deal.
  • If the debtor offers less than the debt collector paid for the debt, it is quite likely they will not accept your offer.
  • Request the debt collection agency to confirm in writing that they will request removal from your credit score any mention of the debt, once you have paid the agreed-to amount of debt.
  • Keep the pay for delete letter concise and to the point.
  • The debt collection agency may not accept your proposal, however, try to sound them out with regards to what might be acceptable. This is a negotiation.
  • Be prepared and have the funds on hand to pay whatever you proposed. The debt collector might accept your proposal without further discussion.
  • Send all correspondence by certified mail to ensure that you have proof the letter was sent and received.
  • Keep copies of all correspondence and take notes of what was said during verbal discussions on the phone, along with times, dates, and who you spoke to.
  • Decide what your primary objective is. Have the record removed from your credit report or reducing the actual amount of money you owe or both. Once you know your objective, negotiate accordingly.

What If the Pay for Delete Letter Is Rejected?

Pay for delete letters are not always accepted by creditors or collection agencies. They may not be interested in renegotiating the debt. The original creditor may feel the debt is legitimate and your offer is insufficient. The debt collection agency has purchased the debt from the creditor and does not have the authority to request the debt to be deleted. The amount is just not worth their time and effort based on the terms you offered.

If you wish to continue pursuing the deletion of your debt from credit rating agencies, several approaches can be considered:

  • Review your rights as outlined in the Fair Credit Reporting Act Credit Laws.
  • Improve your offer and resend the Pay for Delete Letter
  • Resubmit the pay for delete letter if the account is moved to another debt collector
  • Pay the debt and wait 7 years for the report to be removed from the Credit report
  • Pay nothing, however, you could be sued for the debt, and credit collection efforts will continue.

Will Pay-for-Delete Improve My Credit Score?

Many different factors must be considered, however in general if you are successful at removing a negative entry from your credit score, your overall score will improve. Even if you miss a payment, there is a negative impact on your score which stays there for many years. Also if multiple debts remain unpaid, your score may improve a small amount, however until these debt reports age out or are removed, your score will remain low.

Unfortunately, there are collection agencies who will accept payment and then fail to have the negative item removed, even if you have a confirmation letter from them indicating they will request the debt collection report removed from your report.

A collection agency may not have the authority to delete the original debt report, even though the debt has been fully paid as per whatever agreement you have negotiated with them.

Then there is the IRS impact. A negotiated debt delete agreement that includes a partial payment as acceptance of payment in full is considered debt forgiveness and must be reported as taxable income if it is over $600.


The pay to delete letter is primarily a formal business communication between the debtor and the creditor or collection agency.

The debtor is offering to pay some portion of the debt up to 100% in return for removing records at all credit bureaus to improve their total credit score. This is above all a negotiation between the two parties and you are protected by the Fair Debt Collection Practices Act and have the right for the debt to be verified before you make any payments.

Always obtain a written agreement to the final deal before making payment to the collection agency. Be prepared to pay whatever amount you are offering. The collection agency will expect payment immediately once an agreement between both parties is formalized.

Every situation is different. Multiple debts will need to be handled individually. There is no guarantee that the collection agency will accept your proposal and agree to remove records from credit bureaus.

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