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Pay for deletion letter 2024 (guide + free samples)

This post covers everything you need to know about pay for deletion letter.

Your credit might suffer greatly from late payments, skipped payments, or any other kind of credit delinquency.

In fact, 11% of U.S. Consumers have poor credit Scores. On a scale of 300–850, FICO scores that fall under the 580 threshold are considered to be very poor. (source)

If you have credit issues, you should look for practical solutions to fix your credit.

The simplest and least expensive option is to send a pay for deletion letter.

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What the heck is pay for deletion letter?


Here you will learn everything you need to know about that including;

  • What is a pay for deletion letter?
  • Is a pay deletion letter binding?
  • When to use a pay for deletion letter?
  • Can a Pay for Delete Letter Really Repair a Credit Report?
  • What if your pay for deletion letter does not work?
  • What should you do after sending a pay for deletion letter?
  • How do you write a winning pay for deletion letter?
  • pay for deletion letter template
  • pay for deletion letter sample
  • etc

Let’s get started

What is a pay for deletion letter?

A pay for deletion letter is a brief statement of facts written by an individual to negotiate with a creditor or collection agency to have a bad item removed from his credit reports in exchange for paying off the debt.

The following is how things work.

Imagine finding out that you have poor credit as a result of bad information on your credit report resulting from an unpaid bill.

You can ask a debt collector to remove a bad record from your credit report in exchange for paying part or all of the amount using a “pay for deletion” letter.

Writing a pay for deletion letter is an excellent option because it is a quick procedure to improve your credit score.

It is crucial to understand that making an offer to settle a debt in order to have it removed from your credit report does not imply that you are pleading guilty to the debt.

A pay for delete letter informs a debt collector that you are amenable to paying back a debt that the collection agency claims you owe.

In exchange, you ask for an agreement confirming that they would remove negative information from your credit report.

Remember that if you’ve already paid the debt and want the negative item erased, a pay for delete letter will not work. Try a goodwill deletion letter instead.

Is a pay deletion letter binding?

In short, a pay deletion letter is not binding.

A pay deletion letter is merely a legal negotiation tool with no binding effects.

Here I will tell you why!

The major credit bureaus have agreements with the majority of bill collectors. (you can see a sample of debt collecting agency agreement here)

They are frequently forbidden from deleting accurate data from their customers’ credit files under these contracts.

Your credit report should contain any accurate charge-offs, late payments, and delinquent accounts for the standard seven years.

Because their industry is based on data accuracy and trust, creditors dislike when legitimately unfavorable information about you is removed from your credit history when it is true.

Taking away truthful information weakens that goal.

If a creditor or debt collection agency entertains a pay for delete letter, they may be breaking their collection agreements with the bureaus.

When to use a pay for deletion letter?

You have already seen that a pay for relation letter is not binding.

Should I still use it?

Absolutely YES.

Here is why

First, a pay for deletion letter should only be used for debts that your creditor has already validated.

Legally, the creditor cannot try to collect the debt or record it to your credit report if it hasn’t been verified.

If a creditor is attempting to collect money from you for a debt that has not been verified, be sure to submit a debt verification letter to them.

Second, a pay for deletion letter is extremely helpful to clear recent debts.

According to Fair Credit Reporting Act (FCRA), it is illegal to include over seven years of debt in a credit report. (you may learn more about how to deal with time-barred debt here)

All outstanding debts can be reported to the major credit reporting agencies until seven years have passed.

Your credit score may decrease if you fall behind on any of your accounts.

The original creditor will consider your account delinquent if you have more than 30 days without paying a certain bill.

They’re likely to view the debt as a charge-off for about 180 days at which point they enter the “seriously delinquent” stage and look for a debt collection firm to help them get their money back.

Your best option by that point might be to settle the debt and seek its deletion.

Third, delete letters are typically considerably more effective when dealing with smaller debts, such as past-due phone, utility, and credit card bills, small medical expenses, etc.

Pay for deletion letters are unlikely to be successful when dealing with “big creditors” like banks or debts with high amounts.

If you are suffering from big debts I advise you to seek an accredited credit firm for more help.

An accredited, nonprofit credit counseling firm can offer you a free credit counseling consultation if you’re having trouble paying off significant debts.

Will assist you in developing a thorough, completely unique plan to handle your debt going forward.

Fourth, send the pay for delete letter only if you can make the entire payment once your offer is accepted.

You could only have a limited amount of time to pay before the offer is withdrawn and collection efforts start up again.

How do you write a winning pay for deletion letter?

A pay for deletion letter is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the collector or creditor’s address, and state that you are writing to offer to settle the alleged amount due in exchange to remove a bad record from your credit report. Finish with “Sincerely,” followed by your name and signature.

REMEMBER! the main purpose of your pay for deletion letter is to improve your credit report.

Therefore, to write an effective pay for deletion letter, do the following.

  • Include your name and contact information
  • Include the date of the letter
  • Include the creditor/collector’s address
  • Include only the information (account numbers, original creditor, the amount listed, etc.) already provided by the debt collector in her previous communications (If you give the debt collector more information than they already have, they may be able to use it against you in court if they sue.)
  • Clearly stating that you are only offering the amount of money to settle the debt does not constitute your acknowledgment of its liability.
  • Do not admit that you owe the debt (refer to the debt as the “alleged debt.”  all the time. If you admit that you owe the debt, you may be able to reset the statute of limitations timeline.)
  • State that you are willing to agree to settle the debt so long the certain circumstances are met. (provide your conditions, if you have no idea, refer to the sample letter below)
  • Say how you can be contacted for further steps
  • State what you want the recipient to do in response to your letter
  • Provide the timeframe you will wait for their response
  • Maintain a professional tone
  • Be honest

other useful tips

  • Send your letter by certified mail with a return receipt requested so you know when and if the creditor receives it.
  • Keep a copy.

Pay for deletion letter template

Your Name
Your Address
City, State, Zip Code


[Collector’s Company]
[Collector’s Street Address]
[Collector’s City, State, and Zip Code]


Account Number: [#]
Original Creditor: [Name]
Amount Listed: [$#]

Dear [Collector’s Last Name]

I, [Debtor Name], am writing to make a one-time offer to your credit department to settle the stated amount outstanding for [$#]. Please keep in mind that while I am giving this sum of money to pay the debt, this does not constitute my acceptance of its liability.

However, while I disagree with the overall amount owed, I am willing to pay the full amount owed if the following conditions are met:

  1. Condition 1
  2. Condition 2
  3. Condition 3
  4. etc.

If you accept the offer, please draft a letter agreeing to the terms on your firm letterhead. This letter must be signed by your representative. The letter will be considered a contract and governed by the laws of my state.

I have the right to dispute the alleged debt under the Fair Debt Collection Practices Act. If I do not hear from you within [#] days, I will consider this offer withdrawn.

I can be contacted through [email] or [phone number].




Pay for deletion letter sample

Merry Christmas
1 Fairfield Dr
South Hamilton, MA 01982
(781) 871-5705

May 27, 20…

John Bush
Mass Collectors
100 Wells Ave
Newton, MA 02456


Account Number: 14728733
Original Creditor: South Shore Hospital
Amount Listed: $1,009

Dear Mr. Bush

I, Merry Christmas, I’m writing to make a one-time offer to your credit department for $1,009 to pay the listed debt amount. Please bear in mind that while I am willing to pay the debt, this does not represent my acceptance of its accountability.

Note further that I am willing to pay the entire amount owed if the following conditions are met:

  1. Remove all debt-related information from Experian, Equifax, and TransUnion credit reporting bureaus;
  2. Payment will be made to fulfill the complete payment under the Account
  3. This debt will be erased from your records
  4. No reference to this debt or settlement will be made to any third (3rd) parties.

If you accept the offer, consider writting a letter on your company letterhead consenting to the terms. Your representative must sign this letter. The letter will be treated as a contract and will be regulated by the laws of Mass.

Under the Fair Debt Collection Practices Act, I have the right to contest the alleged debt. Therefore I will consider this offer withdrawn if I do not hear from you within 30 days.

I can be reached at the aforementioned email address or phone number.



Merry Christmas

Pay for deletion letter pdf


What should you do after sending a pay for deletion letter?

You will need to wait to hear back from the debt collection agency once you write and send the letter to them. Be aware that you might or might not get a response.

If the debt collector responds, make sure their response includes a guarantee that they’ll accept your suggested terms: their removal of negative information from your credit report in exchange for your paying off the debt in question.

This guarantee should be in writing, preferably on their company letterhead.

Make sure to pay the debt collection agency what you have committed to pay if they accept your offer in writing to settle the debt in full or in part with a payment plan.

They can ask you to pay using a cashier’s check or money order. The debt collection agency should follow up by erasing the item from your credit record after you’ve settled the bill or started payments via an agreed-upon installment plan.

Remember that the collection agency may “reply by not responding” if they reject your offer rather than inform you of their decision.

Your pay for delete letter may have been ineffective if you didn’t get clear, positive responses from them in writing.

Can a Pay for Delete Letter Really Repair a Credit Report?

Yes, it is possible, but you should be aware that such letters often have a low to medium success rate overall.

Here is why

A pay for deletion letter may not be necessary if you pay off your debt because the most recent credit scoring models (FICO 9, VantageScore 3.0) exclude collection accounts that have been paid.

Unfortunately, the majority of lenders continue to employ outdated FICO scoring methods.

As a result, it can still be worthwhile for you to send a pay for delete letter.

Additionally, in some cases, negotiating via pay for delete can be successful;

  • If the collection company is willing to work with you to resolve debt and repair your credit.
  • if you are having problems with your phone, energy, or medical bills. Getting rid of this kind of debt is considerably simpler than getting rid of bad credit records related to mortgages, auto loans, etc. from credit reports.

To improve your chances of success, find out as much as you can about the type of debt you owe and honestly evaluate your capacity to repay it.

Ask in your letter whether you can make a settlement offer to pay in installments if you are unable to repay the amount in full.

Also, make sure your letter makes it obvious that you’re prepared to repay the debt you owe in full in exchange for having it removed from your credit report.

Even establishing an installment plan might necessitate further discussion with the debt collector, sometimes this is sufficient to start the process.

What if your pay for deletion letter does not work?

There is, regrettably, no assurance that the pay for deletion offer will be accepted. The offer to pay for deletion is merely a request.

If your letter didn’t work, here is what you can do;

  1. Pay up your debts in full anyway; a zero amount is preferable to an outstanding balance.
  2. Make a settlement offer to the creditor or collector to Settle the account for less than the full balance due.
  3. Wait until the account is transferred to another collector (which usually happens every six months, but occasionally not at all) and send a new pay for delete or settlement offer.
  4. Pay nothing and wait until your credit reporting limit is reached and the item is removed from your credit report. It is important to note that collection efforts will continue (you can stop third-party collector calls with a cease and desist letter) and that you may be sued for the debt.

Isack Kimaro
Isack Kimaro

Isack Kimaro, a lawyer, Creative Writer and self-taught SEO expert has been a prominent author of law-related topics since 2017. Through hard work, dedication, and a relentless pursuit of knowledge, Isack has successfully navigated the legal industry by providing valuable and easy-to-understand legal information to 500,000+ individuals of all levels of understanding.