How To Settle W/Capital One?

Discussion in 'Credit Talk' started by hoppy1214, Jul 28, 2010.

  1. hoppy1214

    hoppy1214 Member


    So I have a credit card with Capital One. The limit on it was $1500. I went to study abroad for a summer and when I got back, the economy had completely wiped out my old work. I struggled to find a job and had to settle for minimum wage to pay my living expenses. In the interim, I was not able to pay the Capital One credit card. I have finally found a decent job and want to settle this credit card and start repairing my credit. I have been researching debt settlement and would like to send a validation letter to Capital One to start getting things in order. BUT, from all the horror stories I've read about Capital One, I am afraid their answer will be a lawsuit. So here are the facts:

    1. The credit card was maxed out at $1500 when I made my last payment.
    2. I haven't made a payment in just over 2 years now.
    3. I haven't received any bills, credit notices, etc for just over a year.
    4. The last bill I received showed the account at $2500.
    5. I have started setting money aside and should have $3000-$4000 saved up by mid-October.

    My questions:

    1. How should I initiate contact with Capital One? Should I call them? Or is it better to start out with a debt validation letter?
    2. When should I contact them? Should I wait until I have enough $ saved up to pay in full in case they try to sue me? Or should I start now?
    3. The general consensus is that Capital One will not completely remove a collections. Is this true even if the account is paid in full?
    4. Is it better to settle for a lower sum or to pay in full to have the mark removed from my credit?

    Thank you for any and all help that can be provided. I've been lurking here for some time researching my options and I know I still have a lot to learn!
  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    How is this debt reported on your credit reports? Does Capital One still own it, or have they sold it to a CA and charged it off, or have they simply handed it off to a collection agency to collect on their behalf?

    Answers to these questions will play a significant role in determining your strategy moving forward.
  3. hoppy1214

    hoppy1214 Member

    The account is listed as Charged Off on my credit report. The confusing part is that I haven't been contacted by any collections agencies. There also aren't any collections agencies listed on the credit report. So where did Capitol One send my account? I've read in numerous places that they have in-house collections? Thank you for your help, I really appreciate it!
  4. billbauer

    billbauer Well-Known Member

    Capitol One isn't selling their debts anymore. I broke them of that habit a while back when they were selling them to TSYS in Georgia. We nailed TSYS and the lawyers they hired several times about a year ago. They were using phony affidavits and that's how we got them. Edelman and McCombs was also supposed to have a class action against TSYS on Capital One debts. That was supposed to have been settled back in December but I haven't heard the results of that yet.

    They do use at least one collection agency that I know of but if the CA can't get a quick settlement they return it to Cap One and Cap One hires the local lawyers to file their lawsuits.

    Several lenders are now steering clear of selling their debts to debt buyers or collection agencies because of the goof ups but the lawyers are still committing violations wholesale.
  5. Hedwig

    Hedwig Well-Known Member

    You don't send a debt validation letter to an original creditor.

    Call Cap One and tell them your story, and that you'd like to make a settlement on the debt. Chances are you can settle for less than you owe. That would still be a negative mark, but it would put a little money in your pocket.
  6. imessedup

    imessedup Member

    i spoke to an account specialist at capital one yesterday. i had a charge off too that i paid off. i asked them if theres anyway they can remove the listings, and htey said their policy is to not remove it for anybody. so it is what it is.
  7. imessedup

    imessedup Member

    i emailed the ceo of Cap 1 asking for a goodwill deletion today. by the end of the day somebody from his office called me. was actually nice and professional, but told me he cannot delete the listings on my credit report. i tried pleading with him, but he wouldnt budge. but he did tell me that 7 yrs from my date of delinquency is in Nov 2011(something i did not know) and that it would be deleted at that time.
    i guess you cant win them all, i tried.

    so with this new information. i have a question

    does it get delete 7 yrs from the first date of deliquency, OR is it 7.5 years (7 yrs after charge off which is 180 days delinquent)?
  8. imessedup

    imessedup Member

    another question....if the date of delinquency is in a year, and they sold the debt to a collection agency...does the collection agency listing get deleted also? in another words, do all listings get deleted 7 yrs from the date of deliquency?
  9. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    In most cases, I believe the 7-year clock starts 180 days after the first date of delinquency. At that point, everything should fall off your reports.
  10. Hedwig

    Hedwig Well-Known Member

    Many years ago there was a lot of discussion about this. I believe that it's supposed to be seven years from the first delinquency, but many times it does stay on for the extra six months.

    You might try disputing it at close to the seven-year mark as obsolete and see what happens. The worst is that it stays on for a little while longer, the best is that it gets deleted.

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