Pay for Delete: Collection Removal Guide
Negotiate to remove collections entirely — not just mark them "paid." Here's how it works.
A paid collection still hurts your score under FICO 8 — the most common scoring model. "Pay for delete" is a negotiation tactic to remove the collection entirely instead of just marking it paid.
What Is Pay for Delete?
Pay for delete is a negotiation where you offer to pay a collection account in exchange for the collector deleting the tradeline from your credit report entirely — not just updating it to "Paid."
Why does this matter?
- FICO 8: Counts paid collections negatively (most credit card/loan decisions)
- FICO 9: Ignores paid collections
- VantageScore: Ignores paid collections
Since FICO 8 is still the dominant model, removing the collection entirely beats just paying it.
Is Pay for Delete Legal?
Yes — for the consumer. There's nothing illegal about asking.
The grey area is on the collector's side: Credit bureaus require furnishers to report accurate information under the Metro 2 standard. Deleting a valid debt arguably violates that agreement.
However:
- The FCRA doesn't require anyone to report debt — it just requires accurate reporting if they do
- Collectors can choose to stop reporting at any time
- Many collectors will quietly agree to remove items
Who Agrees to Pay for Delete?
| Creditor Type | Likelihood | Notes |
|---|---|---|
| Junk Debt Buyers | Higher | Portfolio Recovery, Midland — bought debt for pennies |
| Small Collection Agencies | Moderate | More flexible, less bureaucracy |
| Medical Collections | Moderate | Often willing to negotiate |
| Original Creditors | Very Low | Chase, BofA, etc. rarely agree |
Original creditors (banks) almost never agree because they have compliance departments and don't want to set precedent. Third-party collectors who bought the debt for pennies are more pragmatic — they'll take cash over credit report leverage.
Step-by-Step Pay for Delete Process
Step 1: Verify the Debt
Before paying anything, send a debt validation letter within 30 days of first contact. Request:
- Original creditor name
- Amount owed with breakdown
- Proof you owe the debt
If they can't validate, you may not need to pay at all.
Step 2: Check the Statute of Limitations
Each state has a statute of limitations on debt collection (3-10 years typically). If the debt is past the SOL:
- Collector can't sue you
- Paying may restart the clock in some states
- Weigh whether paying is even worth it
Step 3: Send a Pay for Delete Letter
Send via certified mail with return receipt. Include:
- Account number
- Your offer amount (start at 40-50% of balance)
- Explicit request to delete from all three bureaus
- Request written confirmation before payment
📝 Sample Pay for Delete Letter
[Your Name]
[Your Address]
[Date]
[Collection Agency Name]
[Agency Address]
Re: Account #[XXXXX]
Original Creditor: [Name]
To Whom It May Concern:
I am writing regarding the above-referenced account. I am prepared to pay $[AMOUNT] as settlement in full for this debt, contingent upon your agreement to the following terms:
1. Upon receipt of payment, you will request deletion of this account from Equifax, Experian, and TransUnion within 30 days.
2. You will provide written confirmation of this agreement before I submit payment.
If you agree to these terms, please respond in writing within 15 days. Upon receipt of your written agreement, I will submit payment via [certified check/money order].
Sincerely,
[Your Signature]
Step 4: Get Written Agreement BEFORE Paying
⚠️ Critical Rule
Never pay without written agreement first. Verbal promises are worthless. Get the deletion commitment in writing on their letterhead before you send a single dollar.
Step 5: Pay and Document
Once you have written agreement:
- Pay via certified check or money order (not debit card)
- Keep copies of everything
- Note the payment confirmation number
Step 6: Follow Up
After 30-45 days:
- Check all three credit reports
- If not deleted, send follow-up with copy of agreement
- File dispute with bureaus if necessary
What If They Refuse?
If pay for delete is refused, you have options:
- Try again later — Different rep, different answer
- Pay anyway — At least removes "active collection" status
- Wait for FICO 9/10 adoption — Paid collections won't count
- Dispute for errors — Date wrong? Amount wrong? Dispute it
- Wait for it to age off — 7 years from original delinquency
Pay for Delete vs Just Paying
Pay for Delete Success
- ✓ Collection removed entirely
- ✓ No negative mark under any model
- ✓ Immediate score improvement
Just Paying
- • Shows "Paid Collection"
- • Still hurts FICO 8
- • Neutral for FICO 9/VantageScore
- • Stops collection calls
Special Cases
Medical Debt
Good news: Paid medical collections are now removed from credit reports automatically. Medical debt under $500 isn't reported at all. Pay for delete is less necessary for medical debt now.
Old Debt Near 7-Year Mark
If debt is 5-6 years old, it may not be worth paying at all. It'll fall off naturally soon. Paying doesn't restart the 7-year clock (that's set by the original delinquency date).
Multiple Collections
Prioritize removing collections with higher balances or from well-known lenders — they may carry more weight with future creditors doing manual review.
The Bottom Line
Pay for delete works — but not always:
- Success rate: 10-30% depending on collector
- Best targets: Junk debt buyers, small agencies, medical collectors
- Worst targets: Original creditors (banks)
- Critical rule: Written agreement BEFORE payment
Even if pay for delete fails, paying collections still stops harassment, prevents lawsuits, and positions you for better scores as FICO 9 adoption grows.