I just negotiated a low settlement on a charged off account, but CapitolOne will not budge on deleting the negative tradeline, stating its "illegal". The negotiations where very nice, but they would not budge on a favorable rating. I know most of us in reality would love to settle low and still receive a favorable rating, but whats most important, relieving yourself of the total debt(along with payments) or the tradeline staying, but using our rights to dispute it every couple of months & making them work until they dont report it any longer then it has to come off. Wondering how everyone feels on this subject matter.
Capital one seems to be one of those sue happy companies so I am not sure if I would mess with them. I have a settled cc from citibank that was 5 years ago and it has brought me nothing but grief. Even 5 years later they verify every single time.
I agree, just to get out from under that debt & never ending payments. I am in the process of doing the same thing. What % did you settle for ?
I was blessed in that I got an agreement in writing to settle the account for %30 percent of the original balance. I drafted a good letter and faxed it over and got the agreement in 2 minutes. I negotiated about the tradline, even speaking to a manager who also was nice. But in all reality, my scenario was either get out from under the debt(ie. payments with interest still being tacked on ) or stay under that debt because of the tradeline. I chose to get out from under it and dispute it every cpl of months in hopes of getting it removed.
who did you fax to?, what person did you talk to?, and what was the balance..... by chance do you have a copy of what you faxed over... i have a charge off for 587.00 that i would like to make an offer on... thanks
Screw Capital One!! They claim I owe them $900.00. I sent them an intent to sue letter for their violation of the FCRA and a demand for settlement of $4000.00. The lady at the Executive office stated they did not violate any laws. I beg to differ with her as I have actual proof of such. Although she didn't want me to fax her this proof. She said "what about the $900.00 and change you owe us we can sue you for that??" I said "no problem we can settle this right now if you want??" She says...."Go ahead sir, I'm listening" I said "You just take the alleged $900.00 you company claims I owe and forward me a check for $3100.00 and delete the account from my credit files, it's that easy!!" She says..."Sir, your not being rational here." I said "Quite the contrary, I'll be suing your company in about a month for much more, do you want me to fax you my damages??" At this point she really wouldn't negotiate with me stating they will forward my intent to sue letter to their consul for review and possible suit against me. I pretty much said....Not a problem in fact I would much rather deal with your attorney anyway as I'm sure he won't be as ignorant of the laws as you are. "Click!" I will be suing them next month, I don't care about the $900.00 they claim I owe. That isn't a problem for me to pay even if I wanted to. As far as judgements go I'm well protected in PA. No wage garnishment, I removed my name from all bank accounts, they are only in my wife's name. I don't really own anything outright so they could just wait in line even if they do get a judgement against me. I really don't think they could even recover the amount they claim I owe because I have got them on plenty of FCRA violations and my damages exceed their claim 10x! I'll let everyone know how it goes! Tac
How old is your charge off? See how close you are to the SOL. I owe Cap1 $4000 and one day they say they are going to sue me and a month later they make an offer to settle for 70%.
It was just recently charged off. I dealt with a Mr. Polley in their dept.. the amount was around 1400(with payments around 70 a month with 21 percent accruing 96 cents a day) Settled for $405. Here is a copy of my letter. Your Address July 29th, 2002 Capital One Attn: RE: Dear It has been a pleasure working with you & I thank you for working with me on this. As you are aware, over a year ago I suffered a few setbacks that severely impacted me financially. To the effect that it has led this account to being in state that is in. Unfortunately it has left me with little resources to satisfy this account and a host of other creditors that I am in the same position with. Going forward, I feel obligated to your company and want to make in effort to settle this for $__ dollars as payment in full. In addition, any references to late payment or charge off regarding this account are removed from my credit file. If these terms are acceptable to your company, please sign below and return a copy to me. Upon receipt of this acknowledged agreement, I will express you a money order in the amount stated above. Read, Approved and Accepted by:________________ Date:_____ Sincerely Your name
The problem is the charge off is too new to negotiate really hard. Mine are 1 year old. Don't forget that they are going to issue you a 1099 for $995...the money you saved, as income. You'll end up paying a little income tax on this.
How do you figure? Where did you get that info from? If so, to me its better than carrying around that ball and chain payment with mucho interest.
Any settlement of debt that is over $600 requires the bank to issue a form 1099 for tax pruposes. The IRS figures the money you saved should be treated as income since, in their mind, you made money on the deal. I don't have the link to it, but it's all over my offer to settle notices. Ask anyone on this board. In the long run the taxes are cheaper than interest. Do what ever you feel comfortable doing.
If you can find a link, let me know, if there are any other posts about it let me know, should be interesting reading. It is not stated anywhere in the settlement letter. Profit/income from a debt settlement? Taxes? Interesting.
willall, Just do a "google search" and use 1099C as the subject. Links galore. You may have no tax liability if you can prove you are insolvent.
I found info on the 1099, very interesting reading. Ill have to have my tax writeoffs in place then. I just faxed it the other day on the 29th, to fax#804-967-6968
ditto...Thank you! (so thankful for all the info and advice...from everyone! starting to feel empowered
