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Cap 1-are they in default?

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In July, I settled a lawsuit with Cap One for about 50% of the balance they were claiming. I have had two suits with Cap 1 and on this one (Suit B) I was unable to secure any consideration for TL deletion or improvement but they did sign an agreement to accept the amount as full settlement and file a motion for dismissal with prejudice in the lawsuit (granted in early August). The agreement contained a mutual release from all claims arising from the civil action.

Now, the problem(s): (Suit B) I have been waiting for Cap 1 to update my CRs, assuming that by October/November, it would be reported as a paid CO, or as settled for less than the full balance (unfortunately) ; however Cap 1 is still reporting the account as a CO (bad debt, charge-off, P&L write-off) but has changed the balance to reflect slightly higher than the difference between the fully loaded lawsuit claim and the settlement. Since October, I have had 3 CAs hounding me over the phone and via the mail for this balance. The amounts the CAs are seeking have increased slightly with each CA, suggesting that Cap 1 is still adding interest. I have written to each CA and they have each gone quiet, only to have a new CA come back (am now waiting for the next one since recently blistering Allied with a C&D letter).

As I mentioned above, this is my second suit with Cap 1. On the other one (Suit A) I was able to get an agreement for TL deletion but they are still reporting the account, although now as settlement, 0 balance, or a CO and they have sent NCO after me to shake the tree. NCO pulled 2 inquiries and when I sent them a nonPP letter they responded that they were deleting the inquiries regarding my two Cap One accounts.

I would like to end the harassment from Cap 1 on both suits. What are my options? Do I need to file suit(s) in order to have a hope to end this junk once and for all? What would be the substance of my suits? Can I even bring any actions since my agreements both contained a mutual release? I’d really rather make this stop than go through any litigation. Can I first put their attorneys on notice that Cap 1 is in default of their agreement(s) with me and that they are reporting false info to the CRAs? BTW, how long can they report the account as a CO after they received payment or settlement (Suit B)? Can anyone help me with some language? Maybe my first question should be whether or not Cap 1 is really in default? I would think that they are violating their agreement to accept settlement as full payment and release me from further action and, possibly, they are in default of the court order by assigning these debts to a CA. Am I wrong in any of these assumptions?

Thanks to all for continued help and advice –

Cap 1 – the gift that keeps on giving, just like an STD…


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Well it would seem to me that since they agreed to take the settlement amount.. that by continuing to try and collect OR by selling the remainder of the debt that was SUPPOSED to be settled they have violated the agreement.

I could be wrong so dont quote me but I think that would constitute reason for you to go after them.

Wait for more advice but mutual release doesnt mean you are in the free and clear. It means that you stick by what you agreed to.. which apparently they havent.

Am I correct?

Wait for the legal gurus to answer this one too~

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Sorry but it is hard for a lawyer to answer your question without reading the agreement itself.

Ask yourself this: Did Cap one violate any provision in the agreement? If not, is the reporting accurate?

If the answer to both questions is No, why do you think it should alter its reporting?.

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