Hi all, I live in Wisconsin, where I believe the SOL is 6 years. I have two Capital One accounts showing on my credit report. According to TransUnion, both are estimated to drop off this month. I have been working on cleaning up my credit reports for about two months. I started with 17 negatives and have gotten them down to 5, thanks in great part to you folks on this board. However, I noticed something today regarding these Cap1 accounts. With my first report (from 8/07), the accounts showed as follows: #1 - Balance $1965, Date Closed 11/2001 #2 - Balance $1443, Date Closed 12/2001 I have never been in contact with Capital One since the accounts were active, and actually haven't heard from them in years. On today's credit report, the balances have gone up: #1 - Balance $2014 #2 - Balance $1479 My questions are: If the SOL has expired, how can the balances go up? and How accurate is TU's estimate for removal of these accounts? When can I realistically expect these to drop off my credit reports, and when should I dispute these online if they don't come off? I don't want to 'reactive' them by disputing early. Thanks for your advice.
First, do these accounts show as "Charged Off"? If they are "CO'd", then they should show a $0 balance (if they were sold to a collection agency). The SOL has nothing to do with the balance due. SOL is solely a legal defense for collection if sued. Most likely they added some charge or interest. As for dropping off your credit reports, the key date here is the "Date of First Major Deliquency". This is the date that the account first went deliquent, AND was NEVER brought current. Often this is not listed, and the credit reporting agencies use the "Date Of Last Activity" as a default date. But, if the account was closed around 11/2001, it sounds like it still has a while before dropping off. Be careful, the "update" to your credit report by Cap1 sounds like they "inquired" about your account, and may be getting ready for some legal collection activity before the SOL expires. Your best bet is to call TU and ask what the removal date is, and how it is calculated for these accounts.
Yes, they were charged off. But if they charged it off, how can they add on to the amount? Thank you!
They might have been charged off by CapOne, but if they sold the debts to a collection agency, that agency can add anything they want to those accounts, and reage the debt. If the SOL has expired they cannot go legally after you for payments, but just keep your credit history/rating in the toilet.
Hi SSSYBAR, I had the same exact problem. Practically the same dates - well past SOLC. I wrote to CapOne and here is the reason. CapOne hardly EVER sells debt to CA's/JDB's, they keep it in house. So, understanding that the CO is an accounting practice, they still show the debt as owed. To that end, they continue to accrue monthly late charges, accrued interest and over balance charges. Yes, apparently they can do this. I'm planning to dispute this with the CRA's on the basis that they are reportin inaccurate, incomplete and misleading data. Since CrapOne does NOT report Date of First Major Delinquency and only Date of Last Activity (when charges were applied to the account) they hose your credit score because the account appears to the scoring models to be fresher than it is. I hope that this helps. Good Luck!
This isn't accurate. There are 2 SOL's - one for Collection and one for reporting. Just because the SOLC has passed, does not mean that the debt is gone. You still owe it. It only means that after the SOLC has passed AND they dcide to sue you, you can raise the SOLC as an AFFIRMATIVE DEFENSE. The SOLR (7 years) means that the CRA's cannot report the debt on your CR (unless a shady CA/JDB tries to re-age it. In which case you'll have to dispute with the CRA and DV the CA/JDB claiming the SOLR has passed).
Correct. In most states, they can still sue you. And, they can get a default judgment if you don't show up, even if it's past the SOL. The SOL is a defense that MUST be raised in court, so you have to show up and assert the the debt is out of SOL. Cap One hardly ever sells their accounts. Yes, they keep adding on the interest at least, and they can do this. Charging off is really an accounting treatment. It doesn't mean the debt is gone, just that the creditor does not think they will collect. If they do, they simply reverse the chargeoff on their books. If the account was closed in 2001, it probably went delinquent some time before that, so the date it will drop off your credit report may be correct. It should, as was stated, be seven years after the time it went delinquent and was never brought current.
