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Do I have JACK @#$ written across my forehead? HELP!

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Hello everybody,

I would LOVE feedback on this one; my dh received this in the mail:

Re: Your charged-off Capital One Account #7779311

Dear Joseph Sausagehead,

Capital One Bank has guaranteed your approval for a new unsecured Visa credit card with a 9.9% fixed apr until 2006 and 0% apr on your charged off debt. When your new account is opened, all recovery activities against you pertaining to your charged-off account will stop. The credit bureaus will be notified that your charge-off account has been paid in full........simply take a moment to complete and mail the Acceptance Cert...blah blah blah blah blah blah. The rest talks about a low rate on new purchases and an initial credit limit of 100. And for every 100. of charge of debt you repay to capital one, you'll get a 25.credit limit increase up to a maximum credit limit of 1,000. He'll receive each credit limit increase no later than two billing periods after his payment is received, PLUS no annual fee.

What do you guys think? Before I have dh take a plunge into credit card hell-with gasoline undies on, do you think this is legit or a ploy.


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This is the newest adventure by Cap1. You have to take some things into account:

1)How old is the debt? Has the SOL expired? Is it due to drop from your reports soon?

2)How much is the debt? Did your financial situation change or will you run into problems again that may lead to another default. Now you've defaulted on the "same account" twice.

3)A paid charge off is still negative. Unless they agree to remove the negative information or delete the account, the only one that has anything to gain is Cap1.

4)If you are looking to get a mortgage, they like to see collections and charge offs paid. In that case, the account would show "paid" and you won't have a huge out-of-pocket expense.

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I actually took this offer for my wife. They have done exactly what they said they would do. You definetly do NOT want to default the second time or you'll be sure to end up in court. In any case she had only one other good TL and to get another she would have had to pay out the nose to Orchard Bank or Providian. This one costs her nothing except that she has to repay the balance. They also agreed to give back 10% after 6 months for on time payments. For us we wanted to repay the debt and it gave us a decent vehicle to do so while creating a good TL. I guess it depends on your situation as Doc points out.

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I'll just add my experience. I got the same type of offer from Cap1 just over 3 years ago. The main difference is that they started me with a $700 cl & didn't give the additional $25 for each $100 paid. I have since gotten the cl raised to $1900 and have perfect history with them. I have also been successful in getting the old tl removed (it took awhile but it happened). I have been very happy with them without any trouble. They are now my oldest tl and since I don't have an annual fee I plan on keeping the account even if they don't raise the cl any higher.

It was a good deal for me and has helped me to rebuild!!

Good luck!


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  • 2 weeks later...

The most important thing here is that CrapOne is telling you what it is for.

There have been a number of articles in the past that some outfits try to pass off a credit card as a front for a collection agency.

And the details were buried in the fine print.

So when someone thought they were getting a $500 or $2500 credit limit for a credit card, they ended up with a big fat ZERO of a credit limit with a balance that equaled what they got charged off on (that then began collecting interest again).

I almost got PENDEJO written across my forehead for something similar until I read the fine print...

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I took the offer from Capital One about three years ago. The difference with mine is that it was an old Beneficial charge off. My credit limit is now $1700.00 and it is one of my best tradelines. I have been successful in getting the old Beneficial account off of two of the three cra's. Bottom line for me is I am satisfied in what I received.

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