Cap1 charge-off/new card offer

I got a similar offer. Since I have disputed my Cap1 charge-off with no success, I am going to take them up on it. However, the offer I got was different: It was for a Cap1 Gold MasterCard (don't really know the difference - but whatever). The APR is still the same, but first the charge-off has to be paid off within three months, then you are guaranteed a credit limit between $200 (oh wow) and $2000 - which I am sure nobody gets. Anyways, there is no application fee and the annual fee is $39. It is still reported as a paid charge-off (which is just as bad as an unpaid one) but at least you can start to rebuild with the new card, which is shown on your credit report as a brand new tradeline that has nothing to do with the old charge-off. And paying you charge-off does not restart the 7 years - it is still 7 years from the date of the last activity - not 7 years from the date you paid the charge-off. I think it is a pretty decent deal if you want to pay your old debts and start all over. Hope that helps.

 

I accepted this offer in 2000 for a debt charged off in 1996. CAP1 proceeded to RE-AGE the old account to 2000 and change the status to Paid/Charge-off. That really SUCKS!!

My old charge-off was for $1900 and CAP1 gave me a limit of $900. I have since paid off and it has been in good standing for 2 years. Recently I requested a CL increase via PFB and was denied, because I have a *special* card! But they mentioned that I could certainly apply for another card.

My advice, take it if you need a credit card(ie: a positive trade line), but if you don't, then don't accept the offer. The negative(re-aging) seems to out weigh the positive.

Good luck!

 

Javan - I didn't think they could re-age a charge-off. (I guess they CAN do anything they want to do - but not legally!) Seriously, I thought once something was charged-off, that the DOLA couldn't be changed. Or am I understanding you wrong? I sure don't want them to re-age my account. (Isn't this illegal?)

 

Yes, Yes, and Yes!

When I tried to explain this to Mr. Cooke(PFB), he responded that CAP1 was reporting this correctly! Fortunately, it is only showing on my TU report, but I am still fighting to have it removed.

 

Hi,

Be careful even if you don't accept the offer.

I have an old Exxon account that is 6 years old, and Capital one was 'NICE' enough to purchase it for me, (without my permission), and offer me a card.

I didn't accept.

2 months later it is showing up on my TU report as a charge off, and it is seriously re-aged!!!!

I have fought/disputed it, and now I still have:

Original debt with Exxon.
The collection agency that purchased the Exxon account 4 years ago. (re-aged)
Capital One/Exxon. (re-aged)

This really sucks because I have had a 2 year perfect history with Capital One for a regular card I did accept.

Looking back, I remember the letter said 'we have purchased this account' etc.......

If they want to do something nice for me, they can get it off my reports.

 

Manequinne,

Darn, that sucks! But there is really nothing we can do to prevent Cap One from 'buying' it, eh ?

 

Love,

Thanks.

I just hate that they place it on your report when you aren't 'grateful' to them for offering you a card.

 

I would also consider how old the original charge-off is. If it is due to drop off in the next couple of years, unless it is just your conscience wanting to pay this, with more interest added on, by the way, let it just drop off, otherwise, you are risking "falling off the wagon", or something unfortunate happening to prevent you from not being able to pay it, what happens then?

If you have tried and can't get it off your credit reports, and this is the only other option you have....

That is just my opinion. I have fallen off the credit wagon I don't know how many times, and the situation may be different for you now.

Good Luck whatever you decide.

 

I just got the same offer form Capital One. I owe $474. I just got a First Premier Card, which it going great so far. I haven't decided if I should take Capital One's offer or not. Would it be better to have both First Premier and Capital One showing regular payments on my Credit Report? Would that improve my score faster? Any help with this would be greatly appreciated. Thanks.

 

My charge-off is from 1999 - so it will be 4+ years before it "goes away". I am going to do it ONLY because I cannot get it off by disputing (I have tried and tried) and because it is over 1K, so I don't want to be sued. AND because I don't want them to sell it to a collection agency and run the risk of having it passed on to a CA.

Just for me personally, this is the best way to address this situation. Everyone's situation is different. I certainly don't consider it as them doing me a favor - after all, I am paying in full - but at least it won't come back to haunt me later and I can start to rebuild.

I can say that if they hadn't offered me this "deal", it would have to sit there - unpaid - for four more years. Just being honest here.

 

Manequinne -the exxon account was it serviced by Exxon corp in Houston, Tx or Exxon Credit Services in GA ??

 

Irrespective of whether or not you accept the card, I believe that you have valid grounds for a small claims suit if they re-age the debt (and if you can demonstrate being damaged as a result).

Before it even gets to that, though, if you DON'T ACCEPT THE CARD, you have essentially not reacknowledged the debt as yours, so you'll still be able to BEGIN THE REGULAR VALIDATION/ESTOPPEL/INTENT-TO-FILE sequence. If you accept the card, you've basically acknowledged the original debt's validity, so you won't be able to logically request validation at that point.

Doc

 

Hi,

Original account: PO Box 29116 Shawnee Mission KS 66201

It was Exxon/MGBA.

I think that is what you are asking?

 

CAP1 IS the CA!! Your debt has already been sold to a CA, that being CAP1.

I don't know that I agree with your decision, but I will say that I accpeted the offer because, at the time, I had no CC's and couldn't get any.

Good Luck.

 

Javan - I mean another CA and have it reported duplicate and then have to mess with that whole thing again - something I have done sooo much lately.

And you're right on target - I can't get anything else either. That is exactly why I am doing it. (I was a very bad girliegirl in college - had three subprimes and let them all charge-off... so here I am now at their mercy, basically...)

 

Hello, I am new here but had to respond to your message.
My husband had an old Universal Bank charge off that was 7 years old for the amount of 1780.00. He had ignored this debt and the collection attempts for years.
He received offers for settlements along the way with the most recent one being a 400.00 offer. He didn't do anything about this one either.
In January he received in the mail an offer for a credit card from Capital One, he says he read the offer but (I have my doubts) anyways several weeks later a card came in the mail and he signed it and activated it. He thought he was getting a card with a 50.00 limit.
A few more weeks later he received a statement with a balance owing of 1780.00. He threw it into the garbage thinking this was a mistake. ( I know what your thinking)
Another month goes by and this time he gets a statement for 1780.00 plus late fees and special purchase fees to bring the total up to almost 1900.00. This time he brought this home from his office and had to fess up to me.
I called Capital One and they told me he re affirmed an old debt with them and by signing the card he agreed to pay this.
During this time I had just started my own huge effort of cleaning up his credit report. It was a freaking mess. He never wanted me to know his credit situation and always kept it separate from me. All of his old debts were from his past life, marriage, divorce, etc....
The old Universal Charge off was listed on all three of his reports and even listed twice with one CRA. The Capital One debt was also listed, I managed to have the Universal Debt deleted by letter writing to the CRA's explaining that this debt was bought by Capital One and was being paid. All three CRA deleted it.

Since this time I have managed to pay the Capital One debt down to 1300.00. The tradeline is listed as opened in February, the credit limit shown is the original amount of 1780.
We were lucky they never reported the debt as late even though we never made that first months payment.
Capital One has since offered to forgive 10% of the original debt as long as we could show a good payment history for three months. They also have offered to raise his credit limit by 200.00 more dollars if we pay down the special purchase segment to 520.00 by Aug 23/02. This is very hard to do since most of the money seems to be going to the cash advance segment.
I have been paying them 200.00 per month since March.
Even though I was so mad at my husband in the beginning for not reading the fine print, not telling me what he was doing and so on. This new tradeline has helped his FICO score a lot, with all the deletions I have had his score is now 657.
Since we have been married for the last two years I have taken over all the bill paying and financial planning, this obviously is not his strength in life. I have noticed since I have been working on his credit he has taken on an interest in this and now realizes how important it is to have good credit.
I am hoping to have his score up to 700. when the Capital One is paid off.
Its a good idea to go with this deal if you want to help your credit score. It does make me mad thinking that I could have paid this thing off for 400.00 and had it deleted off the reports anyways as this debt was 7 years old. It also makes me mad thinking that Capital One probably bought this debt for less than 400.00. But at least its helping the credit score.
Sorry this got so long.

 

Manequinne - Yes thats what i wanted to hear. When was the last time you disputed? Ok if you dispute it now the chaos that is out with MBGA now should render a deletion. A majority of the accounts correspondance is handled in India. That address is at the Old Merriam, KS GECapital, which use to handle Wards. They took over MBGA and GECC accts disney,Banana Republic,HQ, Home Depot(Merriam Business Ctr), and the other accts. They send the correspondance to India.

The Physical Exxon Credit Services office is located in Atlanta(Northridge location) but old researched correspondance is sent again to India. Either directly or via Ks or the Oh office. They won't verify because for one they probably won't get it in time or just wont research. I know this First Hand, Really First Hand. They are in the process of trying to pull the process, but you can capitalize on the screwups. Didn't you day it was 6 yrs old though?