Pay for delete letter: how it works and a free template

A pay for delete letter offers a debt collector payment in exchange for removing the collection account from your credit reports. It is legal to ask. The collector does not have to agree.

What "pay for delete" means

When an unpaid debt goes to collections, the collection account can appear on your credit reports for up to seven years from the date you first fell behind on the original account. Paying it changes the status to "paid," but a paid collection usually still shows up.

A pay for delete is a deal: you pay all or part of the balance, and the collector agrees to ask the credit bureaus (Equifax, Experian and TransUnion) to delete the account instead of just marking it paid.

Will a collector agree?

Some will, many won't. Collectors that report to the credit bureaus agree to report accurate information, and the industry's reporting guidelines discourage deleting accounts that are accurate. Original creditors, like your credit card company, rarely agree. Collection agencies that bought the debt for a fraction of its value are more likely to.

Never pay based on a phone promise. Get the agreement in writing first.

Before you send anything

1. Make sure the debt is yours and the amount is right. You can ask the collector for validation. Under federal rules, collectors must send you a validation notice, and if you dispute the debt in writing within the validation period, they must pause collection until they respond.
2. Check your credit reports. Get your free reports at AnnualCreditReport.com. If the collection is inaccurate, incomplete or can't be verified, dispute it with the credit bureaus. That's free and you don't need to pay anything.
3. Check the statute of limitations. In some states, making a payment on an old debt can restart the time a collector has to sue you. See our statute of limitations guide.
4. Check whether it's medical debt. The three credit bureaus no longer report paid medical collections, or medical collections under $500.
5. Know how scores treat paid collections. Newer scoring models, including FICO Score 9 and VantageScore 3.0 and 4.0, ignore paid collections. Many lenders, especially mortgage lenders, still use older models that don't.

Free pay for delete letter template

Send it by certified mail and keep a copy. Don't include your Social Security number or bank details.

[Your name]
[Your address]

[Date]

[Collection agency name]
[Collection agency address]

Re: Account number [account number]

To whom it may concern,

This letter is about the account listed above. I am not acknowledging that I owe this debt or that the amount is correct.

I am willing to pay $[amount] to settle this account in full if you agree to request that Equifax, Experian and TransUnion delete this account from my credit reports.

If you accept, please sign and return a copy of this letter, or send your own written agreement, on your company letterhead. Once I receive it, I will send payment within [number] days.

This offer is not a promise to pay and expires on [date].

Sincerely,
[Your name]

After they agree

• Pay with a method that leaves a record, such as a cashier's check or money order. Don't give a collector direct access to your bank account.
• Check your credit reports about 30 to 45 days later.
• If the account is still there, send the bureau a dispute with a copy of the signed agreement, and send the collector a copy too.

If they say no

You can still negotiate a settlement for less than the full balance, or pay it in full. Either way it will show as paid, which most lenders view better than unpaid. Get any settlement terms in writing before you pay.