What Is a Pay-for-Delete Agreement and How Does It Work?

When a collection account appears on your credit report, it can feel like a permanent stain. Even after you pay it off, the record of the collection can remain for up to seven years, hurting your credit score. This is where a **pay-for-delete agreement** can be a powerful negotiation tool.

What is a Pay-for-Delete Agreement?

A pay-for-delete is an agreement you make with a debt collector where you agree to pay a certain amount (either the full balance or a settled amount) in exchange for their promise to **completely remove the collection account** from your credit reports with all three major bureaus (Equifax, Experian, and TransUnion).

This is different from simply paying a collection. When you pay a collection without this agreement, the account's status is updated to "paid," but the negative history of the collection itself remains on your report.

How to Negotiate a Pay-for-Delete

• Communicate in Writing: Never make a pay-for-delete agreement over the phone. You need a written record. Start by sending a letter that clearly outlines your offer.
• Offer a Realistic Amount: You can start by offering to pay a percentage of the debt (e.g., 50%) as a settlement. The collector may counter, but it opens the door for negotiation.
• Get the Agreement in Writing: This is the most important step. Before you send any money, you must have a signed letter from the collection agency on their official letterhead stating that they agree to delete the account from your credit reports in exchange for your payment.
• Pay as Agreed: Once you have the written agreement, send your payment via a traceable method, like a cashier's check.
• Follow Up: Check your credit reports 30-60 days after your payment has cleared to ensure the collection account has been removed.

Important: Not all collection agencies will agree to a pay-for-delete, as it's technically against the policies of the credit bureaus. However, it is a common and often successful negotiation tactic.

Ready to make an offer? Click the button in the footer to use our free pay-for-delete letter template.