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VaSwtness

debt settlement question with OC

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If after you reach a debt settlement agreement, can the Creditor continue to add charges to the account?

Here is the situation. It's Crapital One.

Sent out a settlement letter to them to avoid possible legal action. The card was NOT charged off yet but knowing them, I knew their letter of intent to sue was real. I was 180+ days late. They countered back with an offer of about $100 more than I what I offered. I agreed and when the time came to make my first payment OF 3, I sent it in ON TIME.

Now, I rec'd my monthly statement from them which was run AFTER the agreement. It included over limit, past due, and monthly $6.00 fee.

Is this normal? Will my statement continue to say this until completely paid for the settlement? Can they really keep charging me the 6.00 monthly fee?

Should I take a different approach knowing that they haven't charged this off and see if at the end of those 3 months, if they will reage the account? I don't really want to have a CrapitalOne card, but I could use it to reestablish a TL and then cancel after a year.

Thanks

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If you make a settlement agreement, usually it is cut and dry - you pay the amount, they close the account reporting zero balance and notation of settle for less then full balance.

I don't see why they are adding additional fees and ignoring the settlement agreement which they made with you.

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I am not sure which way you want to approach them on this matter, if you have the means now, to pay the outstanding balance plus some to cover fees for it to be current again, then you might want to request re-aging this account. Other wise, if you can't make it current, then re-aging will be a curse (buying them more time to add additional fees and will hurt you even more in the end). So you want to be careful here, re-aging works both ways.

You are going to have to make a choice, and tag them down on the matter, if you want to go the other way, then write them a letter - reminding them - that they did make you a settlement offer and that this account is now paid and closed. That you would appricate them updating their system and finishing this matter once and for all - since you met the agreement.

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