scotthey Posted February 12, 2007 Report Share Posted February 12, 2007 Hi all!I am in the process of trying to settle a debt with Capital One and am wondering how to handle this.My current balance is $4900 and they tell me that the account (6 months past due) is at their pre-legal department. Today they offered me to settle for $3900 and it's more than I wanted to settle for. I asked if they would do $3000 and they told me no way. They noted that on the 15th my account goes up for review....not sure what that means.I'm new to all this and really confused and stressed beyond belief with the threat of being sued lingering over my head. I have another account with them at $3500 that I need to settle as well but I've yet to hear anything suggesting that there's legal action pending on that one.Should I take the offer or stick to my guns about the $3000?Thank you in advance for any advise you might offer. Link to comment Share on other sites More sharing options...
elyse449 Posted February 12, 2007 Report Share Posted February 12, 2007 Have you attempted to negotiate your credit reporting yet? It may be feasible to accept their settlement offer, provided something positive can come of it on your credit reports...than again, if it's 6 months overdue it may not be old enough for you to have leverage just yet.I don't know....this is a toughie. I guess if it were me, I'd pay it provided they were willing to negotiate on how they'll report. It's worth it to avoid judgment, ya know? JMHO. I'm not a proponent of NOT paying one's bills. If we owe it, we should pay it but try to do so in a way that positively affects us to. Good luck with this.Elyse Link to comment Share on other sites More sharing options...
AISLE4 Posted February 12, 2007 Report Share Posted February 12, 2007 Cap 1 settles before charge off for 50%. They love to toss around the words pre-legal and paralegal to scare you into paying more. Saying that the account is in the "pre-legal" department doesn't mean that there is legal action pending. Is the account charging off this month? I would have offered $2,000 and then after some back and forth ended up settling at about $2500. Do you have a hardship story?The folks handling settlements try to get as much from you as they can to earn bonuses, BUT they have been trained to settle for 50% if that's all they can get. If you talk to a rep who is playing hardball, you are probably talking to someone who has met their monthly quota and has nothing to lose. Hang up, call back and talk to another rep. Link to comment Share on other sites More sharing options...
scotthey Posted February 12, 2007 Author Report Share Posted February 12, 2007 Just FYI I'm not looking to get out of paying the debt, just looking to pay off as much as I can with the refund I get this year from uncle Sam. I've been laid off more than working for the past few years and the wife had some health problems that prevented her from working quite a bit of that time as well. I ended up taking a job that has the same hourly rate as what I made before but only working 40 hours as opposed to 50-55 a week. Coupled with some bad financial choices and here we are, in debt up to our ears.They have not said anything about charging off yet but it's in collections. (Theirs I assume because it's still with them)The lady I spoke to (The bad cop one) asked if I planned on paying them nothing if they wouldn't settle for the 3000 and I said yes....she then ended the conversation and hang up on me.They keep asking me where I work and I won't tell them because I don't want to be bothered with the phone calls there. They claim that they won't settle because I'm not willing to let them know this information.*sigh* Link to comment Share on other sites More sharing options...
AISLE4 Posted February 12, 2007 Report Share Posted February 12, 2007 Call and ask when the account will charge off. If you're at 6 months delinquent, you're getting close.You have to wear emotional armor when talking to these folks. It's unusal to have a rep at the OC hang up on you. But I wouldn't let it phase me. Call back. Offer less the next time you call and if they ask what happened to the $3000 offer (the rep will probably have it in her/his computer) just say you did the math wrong and you don't have that much money available. You have what they want: money. Tell them that you have other creditors to settle with and if they are not interested in taking your offer, you'll have to move on to work on other settlements and hope you have some money left when you circle back to them.They aren't going to sue you. You have let them know that you are willing to settle at an amount that is greater than their policy demands. "Pre-legal" is meaningless and is only meant to get you to dig deeper into your wallet. Link to comment Share on other sites More sharing options...
scotthey Posted February 15, 2007 Author Report Share Posted February 15, 2007 Well, they've agreed to the $3000 to settle the account. I will have the funds available tomorrow morning at 9:00am but they tell me it HAS to be done today or no deal. Supposedly they're faxing me the settlement agreement in the next couple hours. I told them I'd try to get it today but no dice. There's no way I can get the funds until tomorrow morning...are they just screwing with me about it having to be done today or should I be as concerned as I currently am? Link to comment Share on other sites More sharing options...
livefreeordieslow Posted February 16, 2007 Report Share Posted February 16, 2007 For what's it worth, Cap One seems to have intensified their calls to me this week (I'm dealing with 2 cards). Maybe they're turning up the volume on all of us. In today's call, I verbally negotiated a 1st payment to be made in a month (provided we agree on other terms). So they definitely have that flexibility. Your rep is should be treating you better...you ARE getting what you want. So enjoy the deal after it closes. Good luck Link to comment Share on other sites More sharing options...
Halo Posted February 16, 2007 Report Share Posted February 16, 2007 I had to settle with CapOne a couple of years ago. Make sure that you get a complete TL removal during the negotiation. I didn't. Early last year I wrote a GWL asking that they remove the TL but they refused....and wouldn't budge. Link to comment Share on other sites More sharing options...
AISLE4 Posted February 16, 2007 Report Share Posted February 16, 2007 If the rep told me that it had to be paid today, I'd say "Well, we tried. Have a nice day. Goodbye." You can always call back and talk to a different rep. I know it's a hassle to keep making calls and being put on hold but it can be worth the nuissance.I still think you are offering too much. They will settle your account for $2500--at least they would have if you hadn't agreed to $3000. Now they will be fixated on that amount.Did you find out the charge off date? Not that charge off means much when dealing with Cap1 accounts since they rarely (if ever) sell accounts. But charge off will ding your credit reports and it will mean that your settlement negotiations will be with a CA working on behalf of Cap1. BUT that's not all bad news--Cap1 accounts placed with CA's can be negotiated for a 40% settlement instead of the standard 50% if settlement is reached before charge off. But dealing with CA's can be a headache and if the account charges off you risk being sued. Link to comment Share on other sites More sharing options...
hopen4800 Posted February 16, 2007 Report Share Posted February 16, 2007 Dear Aisle4 et alThanks for your positive reinforcement.Ive lurked around this thread this am and your inspiring.In my limited experience I also think this might be the perfect occasion for the payment to be RE'd. What do you think, Coach?Wouldn't you just love to send those Nordic plunderers in to Crap 1 offices?I wonder what's in THEIR wallets.lol...sort of. Peace Link to comment Share on other sites More sharing options...
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