I have been reading the board for a while now, but never posted since I have been able to find answered just by browsing! But, here is one I haven't seen: I recently received a letter/notice in the mail from MRC Receivables Corp telling me of an offer in conjunction with Capital One. Cap1 guarantees my approval for a new unsecreud Visa in order to pay back my charged off Orchard Bank debt. The card has a 9.9% intro rate on purchased until 2004, and a 0% APR on my charged-off balance. My question is, is this a good offer? Should I accept? BTW - my Old Orhard was due to fall off this year, but it was "updated"/re-opened last year! Is there anything I can do about that? It is so unfair! I greatly appreciate any help the board can give me on this. I'd hate to do something stupid and hurt my credit score even more, but I am really really trying hard to improve it (am starting to think about buying a home). Thank you!!! Christine
I have heard of this happening. Basically, when you are getting this card, they are transferring your debt. In a sense, it will be re-aged, the legal way and time for collection will start over. I would avoid this.
If you only have less than year before the account falls off your credit reports, and you don't have any CAs contacting you, I say wait it out. Some might say you have a moral obligation to pay all your debts, but if you have less than a year on an old old debt, wait it out. It can only hurt you to pay. Besides, you can always donate some money to a charity instead. Also, in what way was the account re-aged? Did the fall-off date change? Cause that's illegal.
A friend had gotten the same offer for one of her charge offs; I suggested that she decline b/c it was not in her best interest to reage the debt, plus she did not need a new tradeline (lessens the average age of accts/FICO score) and the CL they were offering was ridiculous.
Arrow another ca is notorious for this. Screw them! If you are past the Sol then they are sol. they should have sued. Don't reset the sol date for this debt by signing up for a card . You can get another card else where. or even possibly a cap 1 card having nothing to do with this pevious account
I am not sure about the wording, I will have to check my report again and then get back to everyone, but I believe it said it was "re-opened" in 2001. I was waiting to have it just fall off, but now it seems that it has started on another 7 yr period. If that is the case, would it be better to just pay it? It is less than #$600. Thank you for the quick responses - I really appreciate it!! Christine
My wife gets the same offer from Capital One on a Sears debt that was from 1993. Offers to pay off the Sears balance and make low payments on your new balance. And when the entire debt part to Sears is paid off you MAY be eligible for a Capital one card with a CL similar to the Sears Debt. The Sears account fell of her credit report a few years ago. We just feed this offer to the cat.
Why would you just pay it. If someone hit you in the head with a hammer would you just say 'oh well'. Dispute it with the CRAs and go after the company that reaged it and if you need to take em to court.
I got a similar offer just before a charge off was removed. It was rediculous. The new card would have been maxed out upon receiving it. Luckily I passed (I did consider it though, it was before discovery of this board). charge off disappeared soon after. I believe this is just a last ditch effort.
I was just waiting for this particular one to drop off, but the thing that got me was that it showed it was "re-opened" on my report. If I still ignored this, will it still drop off or does that mean the 7 yr aging has restarted? (I am still trying to get the hang of all this credit stuff!) Thank you for your help!
Before I knew any better, I fell for the offer from Capital One. Now the old account shows as a Paid Charge Off on my reports and will stay there another 3 years. Know I wish I never received the offer.
something else to add My wife got this offer, I found the part where they allow a cosigner or second signer amusing! Oh yeh right! I really want to be responsible for something that occured long before we were married. This is a trick designed to take advantage of us simple types.
Who exactly is reporting the debt right now? and more importantly.. who's illegally reaged the account? jerks... that has cost you dearly. My advice: 1. do NOT talk with anyone about this debt ever. Letters only...and sent certified return receipt (you have to have proof you send them and that they received them) 2. If it's with a collection agency... do the validation route... I might even mention that you not only are unfamiliar with this account, but you recently noticed that it shows reopened recently... and you definitely are completely unaware of this... please not only validate the debt but send in writing any documentation regarding the reopened notation... 3. Honestly, if you're past the sol.. I'd hammer them on the reaging part... jerks... it's costing you a LOT of points. Put in the top of the letter that you're starting to shop for a mortgage and that this error may cost you a home... something simple like starting the letter with... "As I am currently shopping for a mortgage, I noticed an error on my credit report involving your company. Time is of the essence in this matter. Please be advised that I will hold your company liable for any adverse actions I suffer due to this erroneous trade line on my credit reports. Therefore, to clear up this matter, I am demanding the following: then the validation letter... 4. If you're close to shopping for a home... let one mortgage company (or broker) pull your report with this error showing... it'll give you actual damages if push comes to shove... 5. I bet we can hammer this off your reports... b/c you may or may not yet know this.. but the reaging just shot your score 40-50 points more ... and that will hugely affect a mortgage approval and/or rate... so you need to send the company a validation letter now... again... who's reporting it ???
Thank you everyone for your responses and help!. The report says that the Capital One account was closed 10/1995, and Updated 9/2001. 10/2001 would have been the 7 yr SOL and it would have fallen off! Is there anything I can do about this? Christine
