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Cap One Auto Finance Lawyer


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I posted in the debt settlement arena but no luck - so here goes. Cap One Auto acct (charge off) and bounced around to several CA's in the past few months. They all went away after being DV'd. Last month received a letter from lawyer/CA with mini miranda stating this was my only chance to pay in full before they file suit. I DV'd them to at least buy me some time and now I have about 50% of the total. I really really do not want a lawsuit- but since they ignored my DV what should I do next? I live in CT and the last payment was about 4 1/2 to 5 years ago and SOL is 6- so I know they are coming soon!!!! SHould I send a settlement offer even though they did not validate? Thank you for any info!!

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Until they respond to the DV notice they cannot proceed with any collection action against you... unless they want to trigger an FDCPA violation that could cost them most, if not all, of their own claim in offsets to you.

Having worked with corporate lawyers for many years, I can say they are typically an egotistical bunch that believe they don't have to follow the laws themselves.

Just follow the procedures for dealing with any CA. If they can't (or won't) validate then they can't legally do squat.

Now one thing does come to mind here that could be the reason why the prior CAs gave up with just a DV notice. I'm assuming this is a repo. CapOneAuto may not have followed proper procedures doing the repo and if so may not actually be entitled to a deficiency balance. If they did a self-help repo and failed to send you a copy of the sale report showing what they sold the car for, they lost the legal right to claim a deficiency balance under the Uniform Commercial Code.

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Thank you Methuss. I thought that they could file a suit at any time- so this is good to know. It is actually not a repo. It was a check that we used to buy a car outright and then well "life" happened. I really would like to settle with them and finally put this behind me. One of the other CA did make an offer that I could now afford- but they never validated and it got moved along. I don't have the money for the full amount and legal fees etc so I was hoping to be proactive (for once!) and settle. If I send a settlement letter- would it be to Cap One directly or the lawyer/CA? Again, thanks!

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A car was purchased via the check and paid on it for a couple of years- then there were a "series of unfortunate events" and stopped paying. Absolutely nothing from them except an occasional phone call until sometime in '06 when it started bouncing from CA to CA. I am in Ct and the sol is 6 years-- I think I am about 4-5 year into it. No longer have the car either but since I bought it outright from dealer, I had the title, but it was so old it would not have paid much on balance at this point.

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A car was purchased via the check and paid on it for a couple of years- then there were a "series of unfortunate events" and stopped paying.

This whole thing is simply not very clear. How can you have made payments if you bought the car outright? And how could you dispose of the car if there was a lien on it?

This isn't jibing.

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Sorry for the confusion. We had a check from Cap One Auto that we cashed and then with those proceeds we were able to purchase any car, anywhere, of our choosing. So there was no lien on the car. Just an unsecured debt with Cap One. We made payments to them. I hope this clears it up- and thanks again for your patience.

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I've used the CapOne "blank check" system myself.

You can't cash those checks. You have to write it out to the dealer for the amount paid on the car only. And you can only write it out to a franchised dealer (Ford, Mitsubishi, Toyota, etc), not one of those little corner lots. After that you have to send a copy of the purchase invoice to CapOne to prove you only wrote the check out for the amount of the car. CapOne then lien's the car using the VIN off the purchase invoice.

If you cashed it out to yourself and then tried to write a personal check to the dealer, you didn't follow the instructions and CapOne will bounce the payment.

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Well maybe they changed the system- this was back in (I am estimating) 1996 or 1997. We did cash the check directly, bought a car for cash and had the title ourselves. We made payments to Cap One-- maybe it was just a credit card check and I am confusing that issue. We never had a card, just used that check once. How do I go about settling with them? Thanks!

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I think I'm not having enough info to make a qualified answer at this point. Too many gray areas.

I will hazard a guess, and this is only a guess.

If this is truely unsecured credit, you may be able to get a workout agreement or a settle for less than full balance agreement by calling capital one and asking for their "loss mitigation department."

I'd say on something this old, they might take .50 on the dollar. I doubt they would go lower than that. But get any agreement in writing before you pay. CapOne has been known to sell off the balance to another junk debt buyer in cases where people simply took their word on it.

In a workout agreement you have to pay all the principal back, but can negotiate the interest rate down and resume payments. After 3 payments are made, the account is returned to active good standing (Re-aged). This may be better for your FICO score if you need a good tradeline on your report. Otherwise, you would be better served by negotiating a reduced payoff amount.

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