How to Write a Pay for Delete Letter

A pay for delete letter is a negotiation tool used to request the removal of negative information from a credit report in exchange for payment. This strategy aims to improve a consumer’s credit score by eliminating derogatory marks that can remain for several years. It is typically used for accounts that have gone to collections, which significantly impact credit standing. While creditors are not legally obligated to agree, this approach can be effective in certain situations.

Gathering Necessary Information

Before drafting a pay for delete letter, compile specific details about the debt and reporting entities. Identify the creditor or collection agency’s full name and mailing address. Obtain the account number, which helps the recipient locate relevant records.

Gather specific information about the debt: the original amount, current outstanding balance, and date of delinquency. Understanding the type of debt, such as a medical bill or a credit card balance, is also helpful. Determine which of the three major credit bureaus—Equifax, Experian, or TransUnion—are reporting the negative item. Note the precise terminology used for the negative mark on each credit report.

Crafting Your Pay for Delete Letter

Start with a formal salutation addressed to the creditor or collection agency, including your full name, current mailing address, and the specific account number. Clearly state your offer for payment, specifying the exact amount you are willing to pay, which can be a percentage of the outstanding balance or the full amount.

Explicitly state that your offer is contingent upon the complete deletion of the negative entry from all three major credit bureaus’ reports. Emphasize that the debt should not be merely marked as “paid” or “settled,” but entirely removed from your credit history. Specify that payment will only be made upon receipt of a signed, written agreement from the creditor or agency. This agreement should be on company letterhead and explicitly confirm that the negative item will be deleted from your credit reports.

Include clear payment terms, such as the method of payment (e.g., cashier’s check or money order) and the timeframe within which payment will be sent after receiving the signed agreement. Provide your current contact information so the creditor can respond to your offer. Conclude the letter with a professional closing.

Sending and Documenting Your Letter

Once your pay for delete letter is complete, send it via certified mail with a return receipt requested. This method provides proof of delivery and confirms the date the letter was received by the creditor or agency.

Retain copies of all documentation, including the completed pay for delete letter, the certified mail receipt, and any subsequent correspondence received. After sending the letter, a waiting period for a response is typical, which can range from a few days to several weeks.

Monitoring Your Credit Report

After sending your letter and potentially making a payment, monitor your credit report to confirm the agreed-upon deletion. You can obtain free copies of your credit reports weekly from each of the three major credit bureaus—Equifax, Experian, and TransUnion—through AnnualCreditReport.com.

Regularly check your reports to verify that the negative item has been successfully removed as agreed. While a paid collection account may show as “paid” within 30 days, complete deletion from your report can take longer, sometimes up to 45 days or more. If the negative item is not removed within the agreed-upon timeframe, or within a reasonable period, you can dispute the entry with the credit bureaus. When disputing, provide copies of your pay for delete agreement as documentation.