Hi I have one more charge off on my acct. a Cap1 from '99. As far I remember the CL was only 750.00 but on all three reports the high credit amount is $1125.00. Also the balance is increasing each month and It shows a balance of $2162 owed Status R9 last reported in 6/02. Where can I find info on how the amount owed has jumped from 750.00 to past due of $2162.00. I'm assuming its interest (the whopping 10% creditors can add here in Calif) plus who knows, seems high to me for a three yr old debt ....I'm probably just wishing it was high..lol Will validating this with Cap1 cause a problem with lawsuit (one more year till sol runs out)....I can't pay the 2162.00 right now . The goal is to make sure they are being honest regarding what I owe and budget a plan to pay them back by May if not sooner. BTW this is still being reported by Cap1 Thanks guys Jamie
Charge offs will do that. My husband has one where the credit limit was $2300 and the actual balance owed is $3561 because of interest and late charges. However, if money is an issue you may be able to settle with them by asking telling them you will pay the amount you owe minus the late charges or do a payment plan. Just make sure you get something in writing that will make it worh your while like a deletion. But the interest and late charges stopped when it officially became a charge off so check you past bills if you can. I do not know if creditors have discression when it comes to being able to charge late fees indefinatley. I doubt it though.
Hi Thanks...so I guess my question is where do I find out what Cap1 can charge on a charged off acct.. This acct was charged off according to my credit reports I guess in 10/00 its status is r-9 date of last activity is 10/99. BUT in Jan when I had a friend/morgage broker run a trimerged report the amount past due was 1999.00. Now my current reports show an amount past due as 2162.00....Cap1 update every month like clockwork... guess I need to figure something out or I will never be able to pay this darn it Jamie
Its less an issue of what they can charge and more a question IF they can charge fees after an account has officially charged off. I would take a good look at the FCRA and the Truth in Lending Act and maybe get some advice from others here who have really studied the laws. I am sure Cap 1 will not be inclined to help you but maybe you should repost THAT question in a general sense as a subject.
Couldn't you request validation of the account from Cap1? Asking for a summary of the charges and a copy of the contract you signed? That should have the info regarding what they can charge interestwise and how long they can charge late fees I would think. I'm not sure but perhaps doing this along with a dispute? I am new, but learning. Hopefully someone else will chime in and let you know if this is the right direction.
Cap one is known to negotiate payment arrangments for charged off accounts. they will change listing from r9 to r5.... you can reach them best by doing a letter via planetfeedback. but i would still verify amounts before agreeing to pay unless you can get them to remove some of the fees, which they did when my dh got his settlement agreement with them.
uniondiva, What exactly is the difference between an R5 and R9. I asked a person at a CRA and they told me they were the same thing and affected your score the same way. She lied to me, didn't she!? Sirrowan
The R stand for a revolving account. 9 is charged off to bad debt. 5 is pays or paid 120+ days past the due date.
That I am not sure about. My understanding is that an R5 is better than a R9, but the point differential?? I'll have to defer that question to someone else with more experience. Anyone out there who can assist?
Several people on this site and some others I visit report being sued by Cap1 for amounts much less than the sum you mentioned. I'd be inclined to lay low until the SOL passes.
Hi Thanks for the info......I've noticed that too I am not intenting to touch that acct till I have funds in hand to bargain with I think...hopefully that will be soon....I appriacte the input..of course on the other thread disputing the acct might prompt Cap1 to send their infamous offer which might be very beneficial in my case...what to do...I guess its amost time to put the options in my hat and shake and draw..lol Jamie
Hi The one where they will grant you a new special card with the objective of paying off old charge off balance you new cards cl is tied in to how much you pay towards the old acct....heres the thread from earlier http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&pgnum=1&postid=222900#post222900 Jamie
Sirrowan, Hockeymom, I believe that there is a scoring difference between r5 and r9. Experian's credit expert modestly improves it's FICO simulator score when you adjust it from collection to 120+days. Also, when an account is charged off it is no longer active with the OC unless they are re-opening it (like Cap1). 120+ days they are still actively trying to collect on it. I'm not sure if this is the same for all CRAs. I'm about to put this supposition to the test this week. I should recieve the report update of a deletion of a paid 120+days this week, and am disputing a paid charge-off right away. I'll make the score improvement comparisons.
