Have you been receiving calls from LVNV Funding and aren’t sure why? LVNV is a debt collection company that specializes in purchasing debts from other companies and attempting to collect the debts for a profit.
They may have called and offered something known in the credit reporting and collections industry as “Pay for Delete.” This is an offer by which, if you pay them, they’ll delete the collections account from your credit report. While this isn’t illegal, it’s a shady business practice and you’re probably better off calling a licensed credit repair service in Atlanta.
What Is Pay For Delete and Why Is It Frowned Upon?
Perhaps it was a canceled autopay that kept billing, or perhaps it was a bill that you already paid—it doesn’t matter to the collector. Because many debt collectors such as LVNV purchase debt from other companies for pennies on the dollar, nearly any amount they can collect from you is most likely a profit for them. For this reason, many debt collection companies will try and get you to settle for something like 25% to 50% of the original debt.
In doing so, they’ll promise to wipe your credit report clean of the collections record. However, unless it is in writing, they are under no obligation to do so. Furthermore, deleting a collections account on your credit report is quite difficult, and even if the company asks the credit reporting bureaus to delete the account, they may refuse.
In most cases, the only way to “close” a collections account is by paying the debt—then, the collections agency will mark the file as paid or settled. It will still show up on your credit report for years afterwards, but it will appear in a better light, as it will be marked as ‘paid.’
Pay for Delete is seen as unethical in the credit reporting business because the collections agency is claiming to the credit reporting bureau that the debt never existed, even though they collected money from you. This can land you, the collectors, and the credit reporting bureaus in hot water.
Many people who don’t even owe a debt are conned into Pay for Delete just to get something off of their credit report. For this reason, it’s best to avoid Pay for Delete offers, as most don’t pan out the way the collections agency promises.
Credit Repair—the Right Way to Delete Collections
If you’re receiving calls for a debt you’re sure isn’t yours, you should reach out to a certified credit repair company like The Phenix Group. Our credit repair specialists will work with the collections agencies, the credit reporting bureaus, and the banks to get illegitimate debts wiped from your credit report.
Once it’s been proven that the debt doesn’t belong to you, the credit repair specialists will communicate with the credit reporting bureaus to ensure your record has been wiped clean. With the negative marks no longer weighing down your credit profile and score, your credit score will rise. You’ll now be able to apply for loans you were previously denied, and you can obtain lower interest rates.
Lastly, our credit repair specialists will work with you side by side to evaluate your current credit report and individual financial situation. They’ll provide recommendations on ways to improve your overall credit profile and score, so you can keep saving money with lower interest rates on future loans and credit cards.
In Conclusion
Pay for Delete is a fast way to try to fix a credit score. However, at best, it’s a shady practice—at worst, it’s a con that could get you into big trouble. If you have credit score problems, a legitimate credit repair company like The Phenix Group can help you the right way.