Well, this is the third time that Capital One has sent me an offer to give me a new credit card for the purpose of transferring an old collection account balance. This really infuriates me to no end. They are going through old collection accounts of mine, one by one, and then sending me offers to transfer the debt onto a new card. Once the old debt is paid off (after being transferred to this new credit card), then I would get the full credit line to use as one would normally use the credit line. Does this make any sense at all? On the offer I received, it shows this as being a joint offer by Capital One Services and The Westmoreland Agency. It goes on to say that the Westmoreland Agency will service the collection account and will report the collection as paid in full. Then once paid in full, I would have the credit line open for use. Hey, Is Capital One up to soemthing here? I smell a rat! This seems like a conflict of interest or something along those lines. What do you think? Needless to say, I tore up this poffer and trashed it like I did the previous two. Thhis burns me up. The accounts they're offering to take over are ten years old and uncollectible...they can't even be reported on my credit file anymore...not legally. I feel sorry for those poor suls who think this is a good deal...they will be burned when they look at their credit report to find all their old collections back on there. I don't like this at all, but I have really like Capital One up to this point. Now I have mixed emotions. Calmest_LA
My fiance took Cap One up on an offer to buy an old Citibank chargeoff/collection acct from a long time ago. At the time we were not aware of the SOL for debt collection (dumb!). However, I must say that it turned out well--the Citi account isn't anywhere to be found on his reports, and the Cap One is showing as a positive trade, "open/never late". This might be just a fluke, but it worked well for him.
I would bet the original account is also approaching the SOL. Capital One and other credit card companies have been purchasing collection agency debt and maing these offers. If you accept you are essentially borrowing money to have them pay the account and the new account restarts the clock for the SOL. I can see why this would annoy some, but I'll admit I have accepted two of these offers. The interest rate is good 9.9% considering my scores in the 400 range, I paid both accounts off quickly and have full access to the credit line and have two cards I did not have before - the offer also forgave 10% of the debt after 6 months if payments were timely. The collection agency did report as "Paid by settlement" on my report, but I have since manage to have deletions by disputing several times with the CRA. I think after a few months, since the account was paid, they just didn't bother to respond to the CRA when I disputed. I know many posters would say I was foolish to pay these debts in this way, when essentially they were uncollectable by lawsuit. For my part, I hate being abused and mistreated by the CRA's and collectors, but the debts were truly mine and I wanted to pay them. Cap One's offer gave me a chance to do this and still get a card I would not have otherwise been able to get, considering the APR.
I did it, too, on the advide of Lexington Law Firm. If I knew then what I know now, I never would have even considered it as an option. It does show up as a positive trade line, but it's got an $8,000 balance and $8,000 owed. When I get a little further along I hope I will be able to do something with this so it doesn't show 100% credit usage. Oh well, live and learn. Bobbi
Hal, You did the right thing...the respectable choice. I understand. But my former collections were not really mine to begin with. They were my ex-husbands! We were divorced in the state of Texas-a community property state-so when we got our divorce, I became legally responsible (on paper) for 1/2 of his debt. We parted and went our separate ways, but when he failed to pay his half, then the CA's came after me. He sent them copies of our divorce degree with all of my contact info, including my social security number, and they began hounding me for his part that he would not pay. These were cards that i never would have qualified for in the first place...some of them he had before we were even married. It was a big mess, and I was younger and had no idea how to handle it. Now years later, a whole different life, and I'm still being haunted by this crap. It just isn't right. Calmest_LA
