Many people reported to chexsystems leave the reporting bank(s) still owing a debt. I have been asked many times if there is any way that they can just ask the bank for a PFD (Pay For Deletion). Of course you can ask for a PFD but that doesn't mean that it will work. Here are some tips you should remember when considering a PFD.
1. Once the account has went to collections, it is very unlikely that the bank will be able to help you with a PFD. You can ask the collection agency for one but you MUST have something in writing from the bank itself that indicates that they will remove you, not from the CA(collection agency). The reporting bank is the only one that can authorize a removal from chexsystems unless the CA is reporting it.
2. Banks and collection agencies lie and tell consumers that they will be removed from chexsystems once the debt is paid. Some banks and credit unions are unaware of the way chexsystems works. Many believe that you are removed as soon as the debt is paid not realizing that they MUST request this removal themselves.
3. Many bank and credit unions will state that they will remove you but later the decision is made by the loss prevention dept. or the security dept. of the bank to keep you reported to chexsystems and to ONLY update the report to being 100% accurate.
4. Many times paying off the reporting bank can cause you to be reported for a longer period of time than you would have been if you had not paid the debt owed. For example: a report that is from 2006 will be removed in 2011. If it is paid the bank can choose to report it 5 years from the date last paid. So for example a debt on a report from 2006 is paid in 2010, the report would not be removed until 2015. This is why I sometimes suggest NOT to pay the debt owed to the reporting bank(s) especially on accounts that are older ones.
Certain actions can restart the debt statute of limitations on a dormant account. This includes:
acknowledging that you owe the debt
making a payment
entering a payment plan
making an agreement to pay
making a charge on the account
If the clock on the statute of limitations restarts, it starts back at zero. This gives the creditor or collector more time to use the court to force you to paythe debt.
Name of Bank/Collection Agency
Address of bank/collection agency
Re: Account number or Collection account number
Amount: $____
I am willing to pay this account IN FULL (or a settlement percentage, whichever is feasible) if you agree to immediately delete the account from the credit reporting agencies (namely chexsystems, telecheck, Early Warning Services,Equifax, TransUnion and Experian) and any others that you may have reported to. My sole purpose is to get the item removed from my file. It should not be interpreted as recognition of the debt as valid or acknowledgment of liability for the same.
If you accept the terms of the agreement, the certified amount of $___ will be sent to you provided there is complete deletion of any reference to the debt from my file, from all the credit bureaus that you have reported to. As the full amount demanded will be paid back there should not be any waiting phase regarding the deletion of the items from the reporting bureaus. Your agency should be deleting all information regarding the account from my credit files within 10 calendar days from the receipt of the payment as mentioned in the agreement.
Following the acceptance of the agreement please prepare a letter on your company letter head unambiguously agreeing to the mentioned terms and conditions as the above settlement offer and have it signed by the authorized signatory of your agency. The letter will imply a legal contract, enforceable under my state laws.
In case I do not receive any approval letter within 15 days of your receipt of this letter I will withdraw this offer and request debt validation as per the Fair Debt Collection Practices Act.
Please communicate regarding this account to the address mentioned below.
Thank you for your time,
Your signature
Date
Your Name typed
Your Address
City, State
Zip Code.
