Pay for Delete or Settle on Debt?
Date: Wed, 07/14/2010 - 06:34
I am a full time student. I make about $500 a month. Cavarly is showing up on my credit report. I've done some research on this company and they have a D- rating with the BBB and there are hundreds of complaints.
Orchard says that the account is no longer with them. I would rather deal with the original creditor of HSBC but I'm not sure if that is possible.
Would it be possible to pay Orchard directly, do have the debt paid, and then contact Cavalry to show that the debt has been paid to the original creditor? Wouldn't the CA have to remove the item from the report or at least show that it was paid in full if I paid Orchard directly?
Which would be more useful in this situation...
1. Try to arrange a pay for delete with Cavarly to remove the debt from my credit file (My score is 488... REALLY trying to bring it up!)
or
2. Try to reason out a settlement with the CA for less than the amount owed to have it paid off quicker and shown as "settled, paid" on my credit file.
Thank you for all of your help in advance!
If you send a letter disputing the debt to Cavalry, they have to
If you send a letter disputing the debt to Cavalry, they have to remove it from your credit report while they are confirming the validity to you. Request that they show you proof that you really owe them the debt, there are several strategies and wording you can use to indicate the proof you require, the idea is to put them on the defensive which will strengthen your ability to negotiate even 10 cents on the dollar or less. There is a lot of good information and a free e-book available on freedomfromcreditors.com which will help get things going for you.
the first thing you do is send a Debt Validation Letter, CMRRR,
the first thing you do is send a Debt Validation Letter, CMRRR, to make sure they have the legal right to collect on this debt, include in the letter to make contact only by USPS. If they respond with PROPER validation then you can try to work out a settlement with them. Just make sure EVERYTHING is in writing before you give them or any collector a dime or access to any bank account you have. If its not in writing then no payment. That is strictly for your protection. You can find a DV letter on this site by using the search bar above and tailor it to your situation. DO NOT sign it, print your name only.