IMPORTANT: Not all creditors can agree to have debt removed from your credit. In this case, focus on paying off the debt creditors are willing to remove in exchange for payment. The higher the payment, the higher the odds are that the debt will be removed.
For hospital: if the hospital doesn’t receive payment, they will often sell the debt to a collection agency for much less than what you can offer them. In some cases the debt is not sold and is instead managed by a collection agency/department.
Do NOT:
Tell the creditor where you work
Provide your banking information
Pay using a personal check
Pay using your debit card
Be rude with the creditor
Confirm irrelevant data
Make a payment before receiving the written confirmation
Do:
Be patient & polite
Be prepared with the account details from your credit report
Load the pre-paid debit card before making the call
Record the conversation if possible
Write down the agent’s name, the date, & time of call
SCRIPT
Hi, my name is XX and I’m calling regarding a collection account on my credit report. Can you please provide me with some additional information regarding this debt?
Great, thank you for that! I want to first say that I accept no responsibility for ownership of this debt; however, I’m willing to compromise. I can offer a settlement amount of $XX (min 60% of balance owed) in exchange for your written agreement to accept this payment as satisfying the debt in full and you agree to completely remove any and all references to this account from the credit reporting agencies.
Please note that this is not a promise to pay, this is a settlement offer contingent upon you agreeing to the aforementioned terms. Is that something you can do?
No?
Okay, thank you for your time. (Politely end the call) Do not provide any additional information.
Yes?
Proceed below.
Great! Please send me a signed agreement with the company letterhead via mail or email. Once I receive your written agreement, I will pay $XX via (money order/cashier’s check/prepaid debit card). Please note that this is not a promise to pay, this is a settlement offer contingent upon you agreeing to the aforementioned terms.
NOTE
The removal process can take between 30-60 days depending on when the payment was made and when the agency submits their monthly data to the reporting agencies.
If the debt is still on your report after the 60 days has passed you should contact the collector right away. Make sure to have your deletion letter or email handy to provide the necessary information to the collector.
NEXT STEPS
Once you’ve settled your accounts with the creditors who were willing to do a Pay for Delete, it’s time to set up payment arrangements for your remaining accounts. Work with your Money Coach to identify the best strategy for your specific goals.
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Phone Script