CAPiTAL ONE

[klymax77]

Hi all, I've been battling CRAP 1 for a year now and they never respond to 4 CRRR i've sent. This account was open back in 9/99 and the dola is 9/99. Every month the amount due is changing while being chargeoff. This is not even my acct. I have DV'd them, dispute and nothing ever happen. They never update as account in dispute. What do you think about the following info below. Thanks

EQUIFAX

Acct Type: Revolving or Option

Acct Status Closed

Month Pmt: $0

Date Open Sep, 1999

Balance $1,001

Terms N/A

High Balance $1,001

Limit N/A

Past Due $1,001

remarks: CHARGED OFF CLOSED BY CREDIT GRANTOR

Payment Status Bad debt& placed for collection& skip

EXPERIAN

Acct Type: Revolving or Option

Acct Status Closed

Month Pmt: $0

Date Open Sep, 1999

Balance $935.

Terms N/A

High Balance $935

Limit N/A

Past Due $935

remarks: CHARGED OFF CLOSED BY CREDIT GRANTOR

Payment Status Bad debt& placed for collection& skip

TRANSUNION

Acct Type: Revolving or Option

Acct Status Closed

Month Pmt: $0

Date Open Sep, 1999

Balance $1,001

Terms N/A

High Balance $1,001

Limit N/A

Past Due $1,001

remarks: CHARGED OFF CLOSED BY CREDIT GRANTOR

Payment Status Bad debt& placed for collection& skip

Thanks all

[chincheck]

If you sent a DV letter, Crap 1 isn't required to respond because they're not a CA. This may explain why your accounts don't show as disputed.

Write Crap 1 a letter disputing specific items on your account, and request a complete account history of charges and credits. Per FACTA Crap 1 will then be required to respond and notate your account as disputed to the CRAs.

[tryingtodigout]

Is there any samples of such a letter on here that us newbies could follow. I have an acct with OC reporting, but CA trying to settle and collect. I already sent a DV to the CA but no response and the OC has not updated the acct.

[chincheck]

Click the sample letters link at the top of this page.

[scriptgurl]

I had a bad TL from Providian that Capital One bought. Does this mean they are a CA ? Can I DV them?

[chincheck]

The requirement for a collector is that their main course of business is debt collection. Cap 1's main business is granting credit to consumers and collecting repayment, so they are not required by law to respond to DV.

You can, however, dispute the debt with Cap 1 per the FCRA. They are then required to notify the CRAs that you are disputing the account.

[scriptgurl]

Credit report from EX shows

Capital One Bank

Date opened 01/2000

reported since 11/2004

Date of status 11/2004

Last reported 02/2005

Type/Terms/Monthly pymt - revolv/NA/$0

Resp- Individual

Credit limit or orig amt/ high bal. - NA/ 4,144

recent bal/recent pymt - 4,144 as of feb 05 /

status details

account charge off 4,144

written of 4,144

past due as of 02/05

Account hist-

charge off as of 11/04 to 02/05

Original Creditor:

Providian National Bank

Then I have :

Providian Financial

date opened/reported since - 01/2000/01/2000

date of status/last reported - 04-03/04-03

type/term/pymt - revolv/na/$0

Resp.- individual

credit limit or original amt/ high bal. - 3,400/4,144

recent bal/recent pymt- na/

Status:

Transferred/account charged off. $4,144 written off

Acct history:

charge off as of 04/2003, 03/2003,02/2003,01/2003,12/2002,11/2002

10/2002,09/2002,08/2002,07/2002,06/2002,05/2002,04/2002,03/2002,02/2002,01/200212/2001

180 days as of 12/2001

150 days as of 11/2001

120 " " " 10/2001

90 " " " 09/2001

60 " " " " " 08/2001

30 " " " " " 07/2001, 05/2001

creditors statement "account closed at credit grantor's request"

Is there anything I can do about these account???

[chincheck]

scriptgurl,

Do these tradelines refer to the account that cap 1 bought from Providian? Have any debt collectors contacted you? Do any collection accounts that refer to these tradelines show on your CRs?

Follow the DV flowchart on this site to deal with any collection agencies.

If it is the same account, it appears as if cap 1 bought the account, then charged off and sold it to someone else just like providian did. Payment to the OCs is not an option because they won't accept your money. They've already taken the tax write-off and have probably sold it for additional $$ to a JDB.

Chargeoffs are very hard to get rid of, especially from Cap 1. My suggestion is to write to both Cap 1 and Providian. Dispute something in the tradeline (ex. charge off date) and request a complete account history. Send the letters CMRRR. After you get your green cards, dispute the accounts with the CRAs, pull your reports, and hope (not likely to happen) that one or both of them fail to notify the CRAs that your account is in dispute. An FCRA violation may get you some leverage to get the accounts removed, but you have to be serious about suing in court.

Otherwise, your other two options are to dispute with the CRA's about every 6 months to one year, or write a goodwill letter to a Cap 1/Providian executive asking very nicely to delete the chargeoff.

[scriptgurl]

Do these tradelines refer to the account that cap 1 bought from Providian? Have any debt collectors contacted you? Do any collection accounts that refer to these tradelines show on your CRs?

Yes the Cap account listed is in reference to the Providian... I dont know if any have contacted by phone, I dont answer unknown or out of area calls.. I havent received any mail about it, except and offer from cap one wanting to give me a credit card to satisfy the debt and have a 500 line of credit--- I tore it up but i should have kept that, just for reference.... No other collection accounts refer to this just the two i have listed above.

It doesnt show that Capital one sold it to anyone else... looks as if they are acting as the CA for this debt from Prov..

[chincheck]

The Cap 1 offer was a means for them to transfer the chargeoff balance to a new account. After fees and interest, you'll probably have none of the $500 limit remaining, so it's just a way to get you to pay on the balance they purchased.

If you don't accept Cap 1's offer, they will probably sell it to a JDB soon.

[Average Joe]

Randon, doesn't CRAP1 have a collections division? If so, doesn't that make them a defacto CA? Just a thought.....

[chincheck]

There's two pieces of evidence that point to Cap 1 being a debt collector: 1) a collection department; 2) they purchased a default from Providian. Consider the definitions under federal law:

FCBA § 1602(f):

The term “creditor” refers only to a person who both

(1) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and

(2) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement.

Scriptgurl said she received an offer from Cap 1 to refinance the amount defaulted on a new credit card AND she will get an additional $500 limit. How many times has NCO or Sherman made that offer?

FDCPA § 1692a(4):

The term “creditor” means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.

USC 15 § 1692a(6):

The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.

The words "regular" and "regularly" are key. Cap 1's financial statements and advertising alone can easily prove that their "regular" course of business is consumer credit, not debt collection. Purchasing a default and then offering to refinance it under a new account with an additional limit is simply a slick way to collect outstanding debt while legally getting around the FDCPA.

[Average Joe]

Well said randon! That was an excellent explaination of how the rules work in this situation! Thanks for the lesson.

[blel0906]

If I understand the original post you say the account in question is not yours....What is the Credit Bureau saying they did to investigate? You have the right to ask...2nd step I would take is to call Crap 1....sometimes it takes severel phone calls to get someone that knows their but from a hole in the wall...verify yourself....get the name of who gave you the info and then write Crap 1 a letter that per info you got from xxxx this account is fraudulantly being reported on your credit record...give them x amount of days to remove or you will pursue legal actions....I don't know much about the lawsuit process but if its fraudulant I would think you could file a small claims case against Cap 1...I have had luck reporting to FDIC and FTC if they won't respond to you I garantee they will respond to the government agencies....