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Capital One & Citi CO's w/ collection agency


Amadeus
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FICO score - 600

State & SOL: Maryland Open - 3 Written Contracts - 3

SOL for Capital One (Virginia): Open - 3 Written Contract - 5 (might

apply since I had post dated checks

SOL for Citibank Associates (Delaware): Open - 3 Written - 3

Goals:

  • Pay as little a % as possible (ecspecially to Cap One)
  • Improve credit score
  • Assure against future asset seizure, wage garnishment (although I know they can try, but at least I'll be able to sue them for taking that action)
  • Avoid judgement, being sued (see above)
  • Clean up credit report, change status to "pays as agreed"
  • Ideally remove all derogs, "CO" & late payment notations
  • If none above are possible, delete account all together maybe (not sure about this though, as the 2 in question are 2 of my oldest accounts (opened 1999). Only 1 other remains from the year of 1999.

Brief Summary

In 2005, 2 of my credit cards (Capital One and Citibank) were charged off and sent to collection agencies. For a short period of time, and for both of these c.c.'s, I had arranged for post dated check payments to be debited from my checking account. I later pulled my credit report and to my surprise, they were still being reported as charge-offs. And after doing some math, I found that Capital One was seriously under reporting the amount that I was paying each month. I then decided to stop payment and contact with both, and put that money towards paying off other bills.

Now I realize that I might have reset the SOL dates by making these debited payments and I think that I would like to try and settle with these 2 companies to avoid judgement/being sued. I'm just not sure which one I should start with. I'm thinking Citibank since the balance due is higher and there are less mistakes/mathematical error to call them out on.

Citibank Associates Delaware

Equifax Credit Report

Account Number: XXXX Current Status: CHARGE-OFF

Account Owner: Individual Account. High Credit: $0

Type of Account : Revolving Credit Limit: $4,070

Term Duration: Terms Frequency: Monthly (due every month)

Date Opened: 01/1999 Balance: $3,705

Date Reported: 07/2006 Amount Past Due: $1,649

Date of Last Payment: 12/2005 Actual Payment Amount: $0

Scheduled Payment Amount: $108 Date of Last Activity: 01/2004

Date Major Delinquency First Reported: Months Reviewed: 16

Creditor Classification: Activity Description: Closed

Charge Off Amount: $0 Deferred Payment Start Date:

Balloon Payment Amount: $0 Balloon Payment Date:

Date Closed: Type of Loan: Credit Card

Comments: Consumer disputes this account information,

Charged off account

81-Month Payment HistoryYear Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006 CO CO CO CO CO CO

2005 120 150 CO CO CO CO CO CO CO CO CO CO

2004 * * 60 90 120 * * * * * 60 90

2003 * * * * * * * * * * * *

2002 * * * * * * * * * * * *

2001 * * * * * * * * * * * *

2000 * * * * * * * * * * * *

1999 * * *

Correspondence/Letters

Associates (the c.c. themselves)

  • DATE BALANCE CHANGE OFFER/REASON
  • 1/17/05 $4479.32 c.c. statement
  • 2/16/05 4665.59 + 186.27 " "
  • 3/18/05 4811.15 + 145.56 " "

Client Services (Collection Agency)

  • DATE BALANCE CHANGE OFFER/REASON
  • 3/29/05 $4929.15 + 117.98 pay full
  • 4/29/05 5046.94 + 117.81 pay full
  • 5/31/05 5181.33 + 134.39
  • 6/28/05 5310.57 + 129.24
  • 7/17/05 None checking debit $1250 7/26/05
  • 8/12/05 None checking debit $ 72 8/22/05
  • 9/16/05 None checking debit $ 72 9/26/05
  • 10/14/05 None checking debit $ 72 10/24/05
  • 11/18/05 None checking debit $ 72 11/28/05
  • 12/16/05 None checking debit $ 72 12/26/05
  • 1/31/06 3565.57 - 1745.00 pay full
  • 3/2/06 3509.30 - 41.27 settle for 80%

Academy (Collection Agency) (same company who screwed me mathematically for Capital One account)

  • DATE BALANCE CHANGE OFFER/REASON
  • 4/3/06 3550.57 - 15.00 settle for 80% pay $2840.46
  • 5/4/06 3509.30 - 41.27 settlement amount $1754.65

Payments

Equifax says charge off is "$0". What number should I start with and how much interest can the collection agency add on?

  • DATE PAYMENT NEW BALANCE (start at what #?)
  • 8/1/05 $1250
  • 9/15/05 72
  • 9/28/05 72
  • 10/26/05 72
  • 11/30/05 72
  • 12/30/05 72

Total: $1610

Proof: bank statements and 1 Western Union MoneyGram (to reinstate after 3overdrafts from Citibank in same billing period, see Costs section)

Costs:

the 8.50 is a Western Union charge to send payment after 3 overdrafts in same billing period. The $19 and $31 charges are for overdrafts.

  • DATE COST
  • 8/24/05 $ 19
  • 9/2/05 31
  • 9/9/05 31
  • 9/15/05 8.50

Total: $ 89.50

Capital One - Virginia

Equifax Credit Report

Account Number: XXXX Current Status: CHARGE-OFF

Account Owner: Individual Account. High Credit: $0

Type of Account : Revolving Credit Limit: $0

Term Duration: Terms Frequency: Monthly (due every month)

Date Opened: 11/1999 Balance: $1,732

Date Reported: 07/2006 Amount Past Due: $1,732

Date of Last Payment: 12/2005 Actual Payment Amount: $0

Scheduled Payment Amount: $0 Date of Last Activity: 09/2004

Date Major Delinquency First Reported: Months Reviewed: 9

Creditor Classification: Activity Description: Closed

Charge Off Amount: $3,060 Deferred Payment Start Date:

Balloon Payment Amount: $0 Balloon Payment Date:

Date Closed: Type of Loan: Credit Card

Comments: Charged off account,

Account closed by credit grantor

81-Month Payment HistoryYear Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006 * CO CO CO CO CO

2005 120 150 180 * CO CO CO CO CO CO CO CO

2004 * * 30 60 * * * * * 30 60 90

2003 * * * * * * * * * * * *

2002 * * * * * * * * * * * *

2001 * * * * * * * * * * * *

2000 * * * * * * * * * * * *

1999 * *

Correspondence/Letters

Capital One signed by Pat Williams (the c.c. themselves)

  • DATE BALANCE CHANGE OFFER/REASON
  • 7/20/05 none "70% off"

Encore (Collection Agency) (prior to charge off in March 2005)

  • DATE BALANCE CHANGE OFFER/REASON
  • 1/24/05 $2865.92 pay full

Academy (Collection Agency) (company I made arrangements with for payment)

  • DATE BALANCE CHANGE OFFER/REASON
  • 4/6/05 $3062.96 + 2.96 settle 80% pay $2450.37
  • 4/6/05 " " " " " " (mailed to old address)
  • 4/15/05 3062.96 " " settle 80% pay $2450.37
  • 7/29/05 3003.20 - 59.76 checking debit $ 326.54 8/9/05
  • 8/29/05 2735.00 - 268.20 checking debit $ 326.54 9/9/05
  • 10/6/05 2460.22 - 274.78 "promise not kept"
  • 10/6/05 " " " " " " (same address)
  • 11/7/05 2185.00 - 275.22 checking debit $ 326.54 11/18/05
  • 12/6/05 1892.97 - 292.03 checking debit $ 326.54 12/21/05
  • 1/10/05 1597.21 "upgrade current arrangement"
  • 1/12/06 " " - 1745.00 "promise not kept"

MRS (Collection Agency) (never contacted them)

  • DATE BALANCE CHANGE OFFER/REASON
  • 3/3/06 $1637.47 + 40.26 settle 80% pay $2450.37
  • 4/18/06 1659.64 + 22.17 3 options
    =50% off $ 829.82 1 pay bef. 4/26/06
    =35% off 1078.77 2 pay bef. 4/26/06 and 5/26/06
    =full balance monthly payment plan
  • 5/5/06 3062.96 + 24.54 4 options
    =40% off $ 1010.51 1 pay bef. 5/15/06
    =35% off $ 1094.72 1 pay bef. 5/26/06
    =25% off $ 1263.13 2 pay bef. 5/26/06 and 6/26/06
    =full balance monthly payment plan

Payments

Huge difference in what the balance should be: $1100.76 and reported balance at the time (after 12/21/05 payment), which was $1597.21, now accruing more interest to become $1732.00.

  • DATE PAYMENT NEW BALANCE
  • 7/13/05 $ 326.54 $2733.46
  • 8/10/05 326.54 2406.92
  • 9/13/05 326.54 2080.38
  • 10/26/05 326.54 1753.84
  • 11/21/05 326.54 1427.30
  • 12/21/05 326.54 1100.76

Total: $ 1959.24

Proof: bank statements

Questions:

[*]Maryland interest accrual is 6% on debts, is that yearly or monthly? And can a collection agency actually accrue interest?

[*]Is my SOL date reset to the date of last payment made?

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Guest sifxpert

Your SOL's were definitely reset due to payments. Remember, the SOL is only for litigation. They can still attempt to collect nad report to the CRA's for much longer than 3 years.

Both of these accounts can be settled for 50%. Before they are sold I suggest settling.

SIF

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Thank you for your reply. Sorry for the lengthy post, I looked at it myself and was kind of blitzed by it. Here's where I think I'm at. I plan on starting with Citibank first, which was charged off in 2005 and is now in Academy Collections. I called the OC (Citi) today to "discuss the possibility of settlement", was told account is with Academy. My main goal in all of this is to get the OC to remove their tradeline from my credit report. I am hesitant to contact the collection agency since they are not reporting on my credit report (yet anyway).

My question is this: if I am forced with the collection agency, what is the possibility of them getting the OC's tradeline removed?

Also, when the OC charges off the account and sells the debt, they tend to not want to deal with the debtor anymore. Is that because they legally can't due to the fact they've already gotten their money/tax benefits?(or whatever it is they get).

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I agree that it does appear to be difficult. But the thought of attempting to deal with Academy leaves a bad taste in my mouth. They were the ones who set up EBT debited payments to pay off the Capital One balance and then under reported each month. Perhaps I have a case there to sue? This is also the reason I'm hesitant to deal with them for Citi, they screwed me once.....

Would my Cap 1/Academy experience serve as a legitimate reason for wanting to deal with Citi directly? I've thought of writing them a settlement pay for delete letter (registered mail), formal but polite (I've read that Citi is sue happy, and I don't want to instigate anything with them).

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Guest sifxpert

there is a difference between assigned accounts and purchased accounts. Buds form letter is for assigned accounts. not purchased. once an account is sold the OC no longer has anything to do with account. the OC then becomes the POS JDB.

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  • 1 month later...

Sifxpert - Need next steps and/or contacts:

1. 3 accts w/CrapOne - now ~5600, true endg ~2000; no pmts in 3-3.5 yrs

2. offered 25% settlement, twice (within past 6 mos)

3. contacted by NCO Finl for 1 acct (w/highest alleged bal)

4. ignored NCO Finl since I understand they are very difficult

5. rec'd demand letter from coll atty in my state re: 1 acct (w/highest alleg bal)

Any advice, or suggested contacts to try and settle with CrapOne directly?

Thanks in advance,

msfinance72

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Thanks admin and willingtocope...

The demand letter from CollAtty says they "represent" Crap1 (not NCO Finl). Sent DV today to CollAtty, also sent orig settle offer to Crap1 again for all 3 accts. Appreciate any more thoughts and advice.

Also, TLs for 2 (lower bal accts) still showing on CBRs (w/incr bals ea mo); 3rd (w/highest bal stopped updating this mo)...

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