I have been searching through a bunch of old posts and I can't seem to find my answer, so I am going to ask... I have an account with Capital One that charged off in 1998. I have never been contacted by a collection agency and it remains unpaid. The original balance was $500 and now with all the interest and fees it is up to $1785. Yesterday I got the infamous letter from Cap One stating that they will open me a new account and transfer the balance of the chargeoff into a special account and for every $100 that I pay, I will receive a $50 credit increase. I was wondering if anyone had actually signed up for this and how the old account ended up reporting. It states on the papers that it would report as paid. Did this re-age the account, when the new account was opened? Also, if I don't accept this offer, will they start their collection efforts? Thanks for any input!
Hi This doesn't answer your post I found this thread though http://consumers.creditnet.com/stra...threadid=27829&perpage=20&pgnum=&pagenumber=1 My question is ...did you do anything to prompt the offer ?.... I have a cap1 charge off from '99. Original cl was $750 (I think) now it is a whopping $2199. I'm probaly an idoit but I would love that deal heheh I can't afford to pay the whole amount or offer a settlement for 1/2 just yet but 100.00/mo for another positive cl sounds good to me...I figure the charge offs already there a you can't get sued for a paid chargeoff and if you are trying to buy a house like I would like to sometime in the near future its got to be paid anyways......it doesn't sound like Cap1 is usually willing to delete a chargeoff for payment Good luck...be careful Jamie
My experience is that they send those out as a last ditch effort. I recieved one and the debt was beyond the SOL. Check SOL in your state.
Hi Funny thing ...after disputing a 7yo charged off joint acct with experian because it is till there (it has dropped off the other cra) Guess what I got in the mail ? yup the offer....but anyway..regarding the old charge-off in the letter offer it reads.. "When you open your new account , we will halt any recovery activities pertaining to your old acct. Plus we'll let the credit bureaus know that your acct has been paid in full if the debt if being reported to the credit bureaus.* on the back - *if the charged off debt is older than 7years it is no longer being reported to the credit bureaus. In that case acceptance of this offer would not result in your charged off debt being reported as either paid or paid by settlement" So you can interpret..lol I would say no it shouldn't re-age the account if it going to be showing as paid but I've heard Cap1 can be sneaky.. Jamie
Our credit report showed a chargoff with Capital One that was charged off in 95. I called them and they offered to settle it for 50% which I accepted provided that they delete if from the report. They agreed and I told them I wanted it in writing. The letter comes and they said they would not delete but would mark it "settled as agreed". I wrote them a letter telling them no way and to now validate the debt. Since this was a credit card I included the TILA information that requires them to also provide an accounting of the account and charges. After the 30 days was up I then filed a complaint with the Attorney Generals Office. Within 45 days of that I received a letter from the Attorney General that Crap One sent them. It basically said, due to the age of the account we are no longer able to provide you with a copy of transaction tickets or billing statements to show the progression of your balance. Since we are unable to do this we have stopped collection activity and notified the credit bureuas to remove the information from your file" Bye bye Crap one. Before doing this, make sure your statute of limitations is up. I made it very clear to them in my first settlement letter that I knew it was up and if we could not come to an agreement that suited both parties this would not be settled. They could have settled with me for 50% but chose to play games. In the end they got nothing and were put on the Attorney Generals radar once again.
Old account will report as 'paid chargeoff'. This basically sucks. No, they will not start their collection efforts. Some of these offers are for past the SOl and uncollectable debts. If they were going to come after you, they wouldn't have offered you a card If your letter says they purchased the account for you already, and you don't accept the offer, make sure you start watching your Transunion report, because it showed up on my TU as a new chargeoff. It is gone now, and I am o.k. (breathe), so I won't rant ;-) and I know by now people are tired of hearing it from me ;-) But seriously, if you search through the posts, you will see that some people actually found this offer useful, and accepted it. Whatever you decide to do, good luck.....
