Back in 2000 I got sick and had to take a medical leave of absense from work for about 3 months and was unable to make my monthly payments to Cap1 due to the hospital bills, meds, etc. The last time that I had paid on this account was 7/00 and the balance then was around $220. The card limit was $300. I received a letter from Capital One a month or so ago offering to settle or make payment arrangements for this account that they charged off on 5/01. I called them and the person that I was transferred to advised me that they couldn't settle with me because they had turned this account over to a collection agency and that I needed to contact the CA for settlement arrangements. I called the CA and they advised me that the amount owed now was $1200. They said that they could only offer me two choices: (1) pay $300/month or (2) settlement of $900, which I could do in two month installment of $450/month. I advised them that being a single mom receiving no child support and with my income only that there was no way that I could make that kind of payment a month. They said there was no other option. They wanted my checking acct # and I advised them that I didn't have one active (I have learned my lesson about giving this info to creditors, etc., very bad mistake). So I opted to do the only thing that I could and that was to send what I could a month. So far I have paid these jerks $600. My question is, how can they add this much interest, fees or whatever it is? But I guess I am just SOL and will have to pay $1200 for a $300 card because I messed up and got sick. So much for Cap1's letter offering to settle, that was all a bunch of bull to get me to call.
Hi! Cap one are pure scum. didn't you see that your interest wasn't 24.5%APR, it was HPR (Hourly Percentage Rate), and the late fee wasn't $35. it had that other hidden zero in size negative 25 Russian font. So it was really $350 late fee. I have a Cap One charge off. its around 6 years old. I am planning to dispute it cause I dont even want it on for another year give or take. I think my credit line was $500 and they are reporting I owe them $1650. Aren't they sweet? Their mentality is to make half their customers fail because the interest and fees for a late account are even more enticing than an on time account. SO they take pride in their colelction work. Unless that was your only collection I wouldnt have paid them a dime because either way they are going to report you as a horrible person and that will stand on your file as such. But if its your Only collection then it will look better for it to be paid. If you have other collections, save your money.
In your credit card agreement with both Providian and Capital One, they say that even if your loan is in default, or charged off, it will continue to accrue interest at the rate you had which in my case was in the mid 20% range. So unlike other cards when it's charged off the balance stays the same, theirs continues to go up. I just read this in my credit agreements last night....unfortunately for me I have 3 cards charged off with those companies for a tune of $4000... Luke
Eeek. I have Providian for a couple grand and a couple ither sub primes. Im waiting to dispute them. trying to start with the older accts and medical bills first. those should be fun enough. But if its not, I have a recent repo to try to work a miracle with. Bloodsuckers of Wells Fargo Fin Acceptance. They love to pull those inquires and report erroneously. Which is hopefully what I will catch them on. they still havent reported a deficiency balance as of a year past the repo. they also still have 5K of interest built into the note which I understand they couldnt do to begin with. Basically put I borrowed 20K for a car, the next month they report my balance as $30K because they added 5 years of 19% interest ahead of time. Lovely folks!
Thats interesting. I was thinking, under the Fair Credit Billing Act, if they aren't sending you a statement (which they quit doing when it goes into charge off), they can't keep charging interest. § 163. Length of billing period (a) If an open end consumer credit plan provides a time period within which an obligor may repay any portion of the credit extended without incurring an additional finance charge, such additional finance charge may not be imposed with respect to such portion of the credit extended for the billing cycle of which such period is a part unless a statement which includes the amount upon which the finance charge for that period is based was mailed at least fourteen days prior to the date specified in the statement by which payment must be made in order to avoid imposition of that finance charge. (b) Subsection (a) does not apply in any case where a creditor has been prevented, delayed, or hindered in making timely mailing or delivery of such periodic statement within the time period specified in such subsection because of an act of God, war, natural disaster, strike, or other excusable or justifiable cause, as determined under regulations of the Board.
Re: Re: Capital One Can someone further elaborate?? Is this accurate??? If a creditor has not forwarded a statement to you after the account was charged off - can they still charge the finance charges and fees?? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Re: Re: Capital One I don't know for sure, but it would be nice ....I've got 3 charged off cards on mine, from a spell of unemployment - all are like 5 years old, and nearly triple the original balance. If someone can elaborate, I know I would be greatly appreciative. I am willing to pay the original balance in full, but I have a problem with paying triple the original amount. Shorty
Re: Re: Capital One why not offer settlement for the original balance in exchange for deletion from your credit reports?
Re: Re: Capital One That is what I plan to do...however, I need some ammunition.....and to just know for future reference.
Re: Re: Capital One That was my plan too, and like MsBandit just wanted some ammunition so they'll be more cooperative. Shorty
Re: Re: Capital One how about saying to them "settle for original balance or i file bankruptcy and you dont see a dime"? i dont' think you need ammunition - at this point they will probably take what they can get.
Re: Re: Capital One Also, remember to check the SOL for your state on these debts. They may be uncollectable, giving you some additional payment for deletion leverage.
Re: Re: Capital One In my case, it is the last derogatory mark (thanks to info from Creditnet posters!!!!) So bluffing and saying I will file bankruptcy for a $600 debt (listed as $1400 with CA) is a bit much, don't you think? They can still pull my report under permissable purpose and see this.
Re: Re: Capital One how would they know if you had $100k in medical bills? you dont have to give them a reason to settle. i always tell my clients to come up with a figure that they would be willing to settle at and then divide that number in half. first you offer the lower number but never offering more than the higher number. tell them this is what i am offering or you dont get anything.
Re: Re: Capital One Taken from http://www.fdic.gov/news/news/press/2002/pr8602a.html Recovery Practices - After a loan is charged off, institutions must properly report any subsequent collections on the loan. Typically, some or all of such collections are reported as a recovery to the allowance for loan and lease losses. Recent examinations have revealed that, in some instances, the amount credited to the ALLL (Allowance for Loan and Lease Losses) as a recovery (which may have included principal, interest, and fees) exceeds the amount previously charged off against the ALLL on that loan (which may have been limited to principal). Such a practice understates an institution's net charge-off experience, which is an important indicator of the credit quality and performance of an institution's portfolio. Consistent with regulatory reporting instructions and generally accepted accounting principles, recoveries represent collections on amounts that were previously charged off against the ALLL. Accordingly, institutions must ensure that an amount reported as a recovery on a loan is limited to the amount previously charged off against the ALLL on that loan. So would this mean that CC can only collect on the amount previously charged-off???
