I'm a bit clueless about this, but I need to know if what Capital One is doing to my credit is even legal. Here's the TL from TransUnion from last months: Capital One Balance: $2223 High Balance: $1200 Credit Limit: $400 Pay Status: >Charged Off as Bad Debt< Account Type: Revolving Account Date Opened: 11/2001 Date Closed: 2/2004 Remark: Account closed by credit grantor --- First, how can the "Balance" be more than the "High Balance"? Second, AND MOST IMPORTANTLY, can Cap1 continue to report new balance figures? I just got an alert from TrueCredit that this was updated and now the "Balance" reads several hundred dollars more. Can they continue to push up this amount? This just doesn't seem right to me. Can I dispute the difference being reporting as the high balance to the "balance" listed? I've tried negotiating with them, including full payment for deletion and I can't even get a written response!
- Perfectly legal - High balance was increased by interest/other fees. As long as you don't pay anything, interest/fees will contine to build up. They are probably on the verge of suing you - which is why they don't even want to start negotiations.
I recently got a settlement offer from a CA for this account for $1200... Does taking such a settlement help or hurt my scores?
Someone else might chime in on your question, however you should be aware that any settlements of $600 or more will trigger a 1099 tax form, and that you will have to include the amount between $2223 and $1200 ($1023) as additional income when you file your taxes.
I suppose they are listing the balance as pas due, that is killing your score I have an account with them just like that in Exp and TU, I tried everyting, they have goods records and they live to kill your credit. I made Eqx delete the account because the Cap1 multiple FCRA violations before I started to dispute it, when Cap1 got my first FACTA letter the fixed the reporting but I had two years of violations documented and saved in my hard drive when I pulled that Eqx deleted it and blocked it, Exp and TU still reporting so I froze those reports. I don't know what's best for you, if the SOL is over in your state maybe you'll want to leave it alone until it drops from the reports, I'm gessing that'd be arround 2010. Taking the settlement will only fix the past due, but you will have a charge off with zero balance or worst yet with a past due balance for the difference 2223 - 1200. I saw Cap1 doing that. They will not delete in exchage of payment. Carl.-
I don't mean to hijack the tread but I'd like to make a question about this Cap1 interest thing after charge off Anyone knows if it is legal for them to keep charging interest in the account without sending out statements to the consumer? I think that TILA states that they must send those statements every month a finance charge is acrued. Carl.-
I have the same Problem, same company I posted earlier under "Truth in Lending Act Creditcard assigned collectors" My deal is with Cap 1 as well. I think the TILA states that if the Debt is deemed not collectible they don't have to provide a statement however in my case, I was sending payments to their selected collector. I don't see how they could consider the debt not collectible. After I paid their assigned collector in full a new charge off shows on my credit report from Cap 1. I only got one comment from my post but I think if we start looking into this it may provide to be a tool to be able to defend ourselves.
The statement from TILA Here is the Section from TILA from the FDIC.gov website. § 226.7 Periodic statement. The creditor shall furnish the consumer with a periodic statement that discloses the following items, to the extent applicable: (a) Previous balance. The account balance outstanding at the beginning of the billing cycle. (b) Identification of transactions. An identification of each credit transaction in accordance with § 226.8. (c) Credits. Any credit to the account during the billing cycle, including the amount and the date of crediting. The date need not be provided if a delay in crediting does not result in any finance or other charge.
I think the tila angle is valid however i'm not a lawyer so i can't advice.your finding out it's almost impossible to deal with those people,never trust them get everything in writing to protect your self.make your offers in writing send it cmrrr to start a paper trail.some of them are not lawyers but paralegal.Like i said don't be pushed around,you have rights.
Note that it says "periodic," not monthly. They could send one annually and probably be compliant. I have a line of credit account that I haven't used for years, and I get an annual statement on it.
We settled 4 accounts in 2001. They have shown "settled/paid in full" but they have been negatives on our CR all these years. As they have aged, their impact has lessened and they are due to fall off in Oct. of this year. And yes, we had to pay taxes on the amount of forgiven debt. I recently got TransUnion to drop 3 of the 4, but the other two agencies wouldn't. They still show them to come off in Oct., though. Also, we settled with original creditors, NOT CA's.
