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Misleading contact info on C/C statement


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I received a statement from Cap 1. On the top of the statement there is a phone number to call for "payment options, financial solutions, etc... I call, thinking it's Cap 1 since it came on their letterhead/statement When I call the number they don't identify themselves. When I ask if it's Cap 1, they say it's Encore Receivable Managemtn. How misleading is that!

It does not say at all that when I call the number, I will be talking to someone other than Capital 1. I still get statements from Cap 1, and can log onto their website. I sent a DV to Encore, but they say they haven't received it yet, sure!

Can they put down phone numbers and not disclose who's it is?

TIA

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Nobody then. I understood it as Encore making you think Cap1 sent the letter. :oops:

I'm assuming this is an account in collections then, so the next thing you should get since you made your first communication with the CA is your mini-miranda from Encore...

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I know I've read and have been told before to do nothing until I get a response from Encore regarding the DV I mailed them. They are just dragging it on, and it's going to charge off in 15 days or so. They game me Cap 1 address to mail DV to. I mailed it to an address someone gave me that was for Encore. Where they trying to have Cap 1 respond to the DV, so I'd think they (Encore) were legit?

The thing that has me so confused is if Cap 1 is referring us to Encore, why should we not set something up with Encore, since Cap 1 made it clear they do not want to talk wit us, and that Encore is collecting for them?

Another thing, Encore has said they keep Cap 1 notified of our intentions, so why will Cap 1 not work with us if they are being kept up to date on this?

Encore also mentioned that there was a possiblity that the credit insurance we had on this account could have helped us, and that Cap 1 does not do hardship programs once your behind. Nice for Cap 1 to never mention this to us.

My head is spinning!

Thanks again!

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If the account is still active (ie: not charged off), why would Cap 1 not talk to you? Seeing as how under the FDCPA, you're not required to speak to a CA at all, it sounds like Cap 1 is shutting the door on their current (and still active) customers which forces them into a charge off? Sounds odd.

Also, since the account has not charged off, Encore is only collecting the past-due amount. That's all. You're going to create a lot more problems for yourself if you try the standard DV route. They're going to tell you something you already know, and by that time, you've been charged off.

The whole idea behind a hardship program is to help you when you're behind. How the heck does somebody justify hardship (ie: lower APR and lower monthly payment) when you're not showing any indication of problems (ie: lates). I think you were being fed a line. Every OC I can think of will actually bring up hardship as an option to YOU when you start falling behind.

What is your intention with this account?

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We don't want it to be charged off, but don't the $ to pay what' s past due. We;ve asked Cap 1 to stop charging late fees and interest, and let us set up a resonable payment plan that we can afford. It went from 9% to 25.9% once it defaulted. They tell me it's in collections, and they can't do anything for us and then transfers me to Encore. I ask to speak to a supervisor and get told they don't want to speak with me, because I'm in collections.

Would mailing a certified letter to Cap 1 asking them to do a payment plan do anything?

The statement we received states the account will be a charge off 1/25/06 if it's not brought up to date. I keep on telling Cap 1 and Encore that it's still Cap 1's account, but they transfer me to 10 different peole who have no idea and say they can't answer my ?'s. I also get told it's out of their hands to do anything regarding the account. They can't set up payments or touch the account, it's Encore's to do that with. The last guy from Cap 1 insisted that if I mentioned any payment amount Encore would take it. He also said to mention bankruptcy. We have no intentions on bankruptcy.

I thought a hardship program was exactly whqt you stated. It was NEVER brought up by Cap 1. The account for over a year was paid on time or before due date. I tried to tell them that I had to have dental sx done, daughter broke wrist, and now have $1000 in med bills to pay, (The hospital gave us papers and put us on a hardship program, with no ?'s asked.)

So did I mess up by mailing a DV to Encore?

Should I once again get on the phone to Cap 1 and keep on asking to speak to someone that can help me.

Shopuld I just mail what I can afford to Cap 1, so it shows that I'm at least trying to pay something.

TIA - again!

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By all means send Cap 1 some money via mail. This is assinine - they won't take money because you MUST go through the CA.... that's a complete lie. Just because that's the cushy little arrangment Cap1 and Convergys has going on, it doens't mean it's going to last.

Basically Cap 1 is keeping you from your account that they still own, and you still have in your control until such time is is charged off for profit / loss. Then they FORCE you to work with a contracted collector because they don't have an in-house collection department? Hello??? Since when were Cap 1's reps not able to take a Check By Phone?

I would file a formal complaint with the OCC after your payment posts. Practices like this need to stop. Enough is enough already.

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OK-you say to make a payment via mail, would via Cap 1 website be alright? I only have only $40 I can give them. I know that's nowhere near what they want.

Also, you mention filing a complaint with Cap 1 once the payment posts. Is there anyone in particular I should mail it to, or just to Cap 1's inquiries address.

Do you know if Cap 1 has a history of sueing/garnishing wages/freezing bank account on situations like this? My husband is really worried about this and has talked about just taking the $ from his 401K, which I do not want him to do.

You are a wealth of knowledge, and I thank you! :wink:

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You may be locked out of the online side of it - that's usually normal when an account is suspended.

$40 will still probably get you charged off.

File your complaint to the OCC. Cap1 isn't going to care about how you feel about their little arrangement http://www.occ.treas.gov/customer.htm#Filing%20a%20Formal%20Complaint

How much of a balance are we talking here? You're looking to hold off paying them as opposed to being sued and garnished. That makes less sense than taking the money out of the 401 to end the bleeding now before it gets worse.

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I checked and I can still make payments on their website.

The balance is $7772.92. Encore wants either$ 1772.92 or $240 to bring it up to date. They have been socking a $35 late fee and $162 in finance charges.

It sounds like even if they make a payment plan with us, it's going to charge off anyway. Once it's charged off, will whatever CA get's it, work with us or give us a reduction on what's owed?

Cap 1 has to notify us before they take any type of legal action, garnsihment or before they can touch our bank account right?

I have no idea on how we are going to pay this back, other than taking money from his 401K. Even if we were able to send them $240 a month, it seems like it's never going to be paid off. :cry:

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I checked and I can still make payments on their website.
:shock: that's a first. cool.
The balance is $7772.92. Encore wants either$ 1772.92 or $240 to bring it up to date. They have been socking a $35 late fee and $162 in finance charges.

Pay them $240. Also, you got the $35 late fee and the $162 in finance charges - unless they took your card and bought things themselves... that's the hardest things for consumers to do - admit they fell into the credit trap.

It sounds like even if they make a payment plan with us, it's going to charge off anyway.

They can't charge it off if it's current (ie: the $240). They can revoke your charging privies, but they can't charge it off when it's not in default.

Once it's charged off, will whatever CA get's it, work with us or give us a reduction on what's owed?

Don't count on it.

Cap 1 has to notify us before they take any type of legal action, garnsihment or before they can touch our bank account right?

You'll receive a summons. Then they'll get the judgment. Then you'll get a copy of the garnishment, or notice your tax return is being seized, or a judgment lien gets placed on your property. See how it stops getting "worth it"?

I have no idea on how we are going to pay this back, other than taking money from his 401K. Even if we were able to send them $240 a month, it seems like it's never going to be paid off. :cry:

Then pay off enough to make the remaining monthly payments manageable and cut up the card. You'll never see another lower APR from them again, but the positive history you get will start to make the "almost charge off" not quite as significant. That's another way to look at it.

You'll have to sit down and discuss this...

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I guess we'll have to see what we can do inregards to getting some $ from his 401K. I'm not sure if we can get the $ that quick, before the 25th.

I know we got ourselves into this, it's just one it get's in too deep, it's so darn hard to get back out of it! Everything in the world keeps on going up, all but everyone's paycheck!

Thanks for all of your help!

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Another guy he works with took $6000 out and is having $45 a week for I believe 3 years taken out of his check to repay the 401K loan. They told him just as long as he's paying it back to the 401K he didn't have to pay taxes--does that sound right?

I was thinking of taking around $2000 out, to get it out of being a charge off.

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Well, I just got off the phone with Encore. Tried Cap 1 and they wouldn't talk.

A supervisor by the name of Karen said she'll put us on a reage plan. Where we pay the minimum due ($233) Jan, Feb, March. Once March's payment posts, they will delete any of the past due amount still left, and then the account will be back to Cap 1. She then said we should neg. with Cap 1 on lowering the interest rate and go on a hardship prgram.

She said it will not be a charge off, and they will report it as we are paying it. She said Capital 1 will be the ones to report it, since Encore just works for them, and can not access his CR.

I'm hoping this is for real!!!

By the way, I mentionted to her the names of the jerks who have been calling and talking rude to us. She told me that Encore's high balance group is no longer around. She said he no longer is associated with Encore. Wonder if that' s a line of bull. I haven't talked to him in the past 1 1/2 weeks, and asked for him and was told he's no longer with them.

Thanks again!

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