Some brief background. I have a charged-off account with Cap One for about $1000. They sent the account to NCO, which stopped harrassing me after I sent a validation request. Now I just got one of Cap One's offers to move the balance over to a new card, with a one dollar credit limit, which will increase to $50 after I make my first payment. Ummm...yeah, right. My question is, does this mean the account has been returned to the OC? If so, should I go the verification route, or offer to settle? NCO offered to settle for half the amount, but offered nothing in writing. I still have another year before this account goes past SOL.
dont quote me on this....because i am new as well, but personally i feel that cap 1 is hard to get off of your CR after it turns into a CO......so i would def. take that offer if it turns your CO into paying as agreed with a new CL. otherwise you will probably have that CO on your CR until the entire 7 years has past for it to be deleted. VA
I don't believe they remove the charge off even if you take the offer. Accepting will re-start the SOL.
I think it is a bad move to accept this credit card deal. It WILL restart the clock on the SOL, and they will also have access to my banking account information, which I DON'T want them to have. Has anyone else had this experience with Capitol One? How did you resolve it?
There are a number of horror stories about this offer on CB and Christie's site. Accepting it may expose you to all sorts of unpleasant results, so this is a warning. It's not a blanket "don't" though, because Cap1 has a nasty habit of suing. 400+ judgments in Hillsborough County in the last quarter of '03 alone. They're suing at probably 10 times the rate of other CC companies. If you can dig out without being sued, that's a good result.
I've done some more checking. Is a credit card considered an "open account"? If so, then this debt is past SOL. This account was opened in another state with a longer SOL, but I have since moved. Which state do they go by? The one with the longer SOL? If that's the case, then there is another 2 years to go figuring the SOL in the other state.
I think they will go with the state where the acct was opened. It is more beneficial for them to do so.
Re: Re: Another Shady Deal From Capitol One It's also important to check and see whether any of one's actions might have tolled or restarted the SOL. Some states, for instance, toll the SOL while the potential defendant is out of state. Moving away might give the plaintiff an indefinite time in which to sue.
Re: Re: Another Shady Deal From Capitol One Your situation sounds alot like mine. I received a few offers from Cap 1 on behalf of NCO in 2003. My original OC was Spiegel's and the charge off amount was $439. Cap 1 was going to give me a card with a $200 credit limit and forego the remaining amount but it was like your agreement, I think. $50 for every $100 I paid up to the $200 limit. They made it sound so good, I almost took it until I asked a friend of mine whether that was a good deal. She said "Hell no!". My SOL was coming up that November and she suggested that I wait it out until Cap 1 couldn't collect anymore. I haven't heard anything from Cap 1 since late September so I guess that they realized the SOL is up. My thing is - I wonder if Cap 1 offer these deals because the amounts are so small, it's not worth going to court over and they believe the consumer aren't educated in credit and debt laws?
Re: Re: Another Shady Deal From Capitol One This thing is past SOL in the state where I live. The thing is, they keep sending mail to my former address, so I don't think they know (although NCO had my current addy). I think I'm going to ask for verification of this debt from Cap 1. In the unlikely event they respond, then I'll go for settlement for deletion. Anybody else done this? What was the result? Advice? On a different topic, I would have settled this thing long ago if NCO had just been willing to put the agreement in writing. Why must they make paying a bill so difficult?
Re: Re: Another Shady Deal From Capitol One This thing is past SOL in the state where I live. 1*I think I'm going to ask for verification of this debt from Cap 1. 2*In the unlikely event they respond, then I'll go for settlement for deletion. On a different topic, I would have settled this thing long ago if NCO had just been willing to put the agreement in writing. 3* Why must they make paying a bill so difficult? -----------------Buck | 74 `````````````````````````````````````````` 2*Duh Why do that on an illegal uncollectible debt ???????3 3*A law is needed that requires forfeiture of the amount owed where the creditor interferes with the debtors efforts or ability to pay. ..
Re: Re: Another Shady Deal From Capitol One 2*Duh Why do that on an illegal uncollectible debt ???????3 ******************************** You know, I was asking for advice and another point of view, not sarcasm and ridicule. I haven't been a member of this board that long, and yes I've read the Hall of Fame posts. If you have a point to make, please make it, with something other than "Duh". Are you saying not to settle for deletion under any circumstances because it's past SOL in my state? Your "one-liner" doesn't really explain anything. For some of you vets of the board, a little patience goes a long way. You were once where I and others on this board are right now. Maybe you should remember that.
Re: Re: Another Shady Deal From Capitol One Re the states and the SOL, tolling, etc- if you aren't hiding and haven't been living outside the country, you're probably fine. They CAN sue you where you lived when you opened the account - check every now and then to make sure they haven't. They usually make these offers on stale debts anyway - you're right, they think consumers are unaware of the ramifications (a lot of them are, when it comes to credit). Cap One is being sued over this in at least one state, maybe more - can't remember, LOL. I know people who took the deal, were happy to get it, felt they were rebuilding, then couldn't get Cap One to remove the charge off. The implication is that the old charged-off account will become a good, new account. Not so - they assign a new account number and report them both.
Re: Re: Re: Another Shady Deal From Capitol One The only one I see reporting is Cap 1, which leads me to believe they have reassumed the account. My next step is to send DV request. Thanks for the input Butch.
Re: Re: Re: Another Shady Deal From Capitol One Also, this account is listed as a charge-off, yet they keep adding a fee or monthly payment amount to it each month. Can they legally do this if it's a charge-off?
Re: Re: Another Shady Deal From Capitol One Yes, I had an offer like this from Cap1 but with some differences. I know that most will say DO NOT accept the offer. I will give you my experience so that you can see the other side. Had a cap1 charge-off from 1998 or 99. Original limit was $500 secured by $100 but after fees & interest the balance was $1550. In 2001 I received an offer from them to open a new account with a limit of $700. In the beginning I wouldn't have any available credit but as I paid down the old balance I would open up credit. The additional $850 of the balance was put into a "special purchases" account. Every payment made would have a portion put to each side of the account, thereby paying down the old balance & opening up available credit. Also had 9.9% interest and no annual fee. After 6 months of ontime payments they waived 10% of the original $1550 balance. After having the account for approx. 14 or so months they sent me a letter saying that if I could pay down the "special purchases" portion of my balance to $200 that they would increase my credit limit by $200. I was able to do this and they did in fact raise my limit. After a few more months they raise my apr to 16.5% (original letter said 9.9% for 3 yrs but I didn't keep it). I called to find out why and they claimed it was only good for 16 months. Tried to get it lowered by csr but no luck. Used pfb to ask for decrease & Mr. Cooke did so without hesitation. Also asked for cli & was told not at that time but to call him back in about 8 months. When my account hit 26 months they sent me a letter telling me that because I had done such a good job taking care of my account that they were converting it to a "regular" card where I would be eligible for increases & bt's but were also again raising the apr to 14.9%. They also said that they were forgiving any remaining balance on my "special purchases" account (funny thing is, I had already paid it off). Once my card converted to a "regular" account I called for a cli and was denied. I decided to again try pfb and asked for cli & apr reduction. Received an email telling me that email wasn't secure so I would hear from them in the mail. Checked my online account and they had raise my limit an additional $1000 and within about 1 week I received a letter saying that they were lowering my apr down to 12.9% (not what I wanted but better than 14.9%). I was thrilled with both & am very happy with Capital One. My experience with them has been great. I'm not saying that you should or should not accept the deal. You have to do what is best for your situation. I did what I thought was best for me at the time and it turned out to be a very good thing for me. Since having the Cap1 account I have been able to get a few additional cc's with decent limits and I feel that the Cap1 account helped me with that by adding a positive tl. Good luck to you in whatever you decide to do. paw67
Re: Re: Another Shady Deal From Capitol One What effect did this have on your credit reports? Did they delete the negative information once you paid off the charged-off balance? Did it add another trade line in addition to the negative one you had with Cap 1? What effect did this ultimately have on your score? I have heard horror stories about Cap 1 or NCO emptying a bank account once they have your information. The application they sent me asks for my banking info. I am VERY hesitant about giving them my banking info. I'm not broke, but things are still a little tight. I think I'm with Butch on this. If they could give me some assurance they would delete my negative account info in exchange for paying off this balance, I would probably go for it.
