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Capitol One/charged off or immortal?


wtxguy
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Greetings. I am new to the forum but have greatly appreciated everyone's intel but I have encountered something new (at least to me).

Knew my credit score was in the toilet but ignored any attempt to correct it until I received a attorney/CA letter from an attorney in Dallas stating that I owed Cap One $3,289 on a charged off cc from 5/05. I sent a DV letter from the site. I have received at least 4 other CA's regarding this account but now the dollar value has grown from the original $963! (absolutely no communication from me to any CA)

Pulled all three CRA's with EX being the most detailed with monthly inputs.

My question is: How can Capitol One continue to report, every month, credit limit/high balance and reporting the charge off every month on a charged off, closed account. I'm new so be gentle.

I was planning on sending off a DV to CRA Monday and then followup with Cap One with an investigation letter. Worthwhile or a waste of time.

thanks one and all

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From experience with cap1.. they will continue to report charge off and add interest every month, until it is paid. I just recently paid the collection agency a settlement and recd a release letter, waiting to see how it will report to the bureaus. My acct was charged off in 2004.

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First off, never send a letter that you find on this site, or any other. They are for guidance only.

Secondly, Capital One will get the money from you at some point, so try to work something out with them before they take you to court. You can ask them for every piece of documentation you can think of, and they will provide it to you because they keep it all.

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In surfing the other sites I found the following: My current EX report does not reflect the "zeroing out" and an accuring balance, what gives, who's right? (Paste from another web site)

Credit card has been charged off and sold to a debt purchaser. The credit card is reporting as an R9 status. The debt purchaser (a/k/a factoring company) is also evident on the credit report. And now the million-dollar question…

(drum roll)

Under these circumstances, can the tradeline for the charged off credit card report a balance owed and a past due amount?

According to page 6 of the National Consumer Law Center’s May 22, 2006 letter to the FTC: “When a buyer of bad debt purchases an account, the original owner should zero out the ‘current balance’ field and inform the purchaser of the debt the date the account first became delinquent”.

This prohibition against reporting a balance is further emphasized in Section 6-19 of the Metro 2 Manual FAQ #42 which addresses the following question:

How should accounts that have been sold to another lender be reported?

Current Balance and Amount Past Due = zero

The use of the term ‘lender’ in the above question, includes ‘debt purchasers’ based on the connotation at the end of that section which reads: “Additionally, if the account is delinquent, it is imperative that you provide to the debt purchaser, the date of the first delinquency that led to the account being sold.

The answer to our question then, is no - the charged off credit card must report a zero balance and a zero past due amount.

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In surfing the other sites I found the following that I thought was relevant to my situation because my current EX report does not reflect the "zeroing out" and an accuring balance, what gives, who's right? (Paste from another web site)

Credit card has been charged off and sold to a debt purchaser. The credit card is reporting as an R9 status. The debt purchaser (a/k/a factoring company) is also evident on the credit report. And now the million-dollar question…

(drum roll)

Under these circumstances, can the tradeline for the charged off credit card report a balance owed and a past due amount?

According to page 6 of the National Consumer Law Center’s May 22, 2006 letter to the FTC: “When a buyer of bad debt purchases an account, the original owner should zero out the ‘current balance’ field and inform the purchaser of the debt the date the account first became delinquent”.

This prohibition against reporting a balance is further emphasized in Section 6-19 of the Metro 2 Manual FAQ #42 which addresses the following question:

How should accounts that have been sold to another lender be reported?

Current Balance and Amount Past Due = zero

The use of the term ‘lender’ in the above question, includes ‘debt purchasers’ based on the connotation at the end of that section which reads: “Additionally, if the account is delinquent, it is imperative that you provide to the debt purchaser, the date of the first delinquency that led to the account being sold.

The answer to our question then, is no - the charged off credit card must report a zero balance and a zero past due amount.

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But if the account is past the SOL from the DOFD, then after 7 years it would drop off your credit report.

Why then would you say it is immortal?

SOL and credit reports don't go hand in hand. They are two separate things.

Also, just because SOL is up doesn't mean collection activities will cease, or that the debt is forgotten by the creditor (or whoever is holding it).

I don't think the OP is out of SOL on this account. From the info he's given, I think there's another year or so left.

Cap1 will likely let the interest keep going, and then file suit right before the time is up.

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You have been given good advice. Cap 1 does not close accounts they hire collection agencys and attorneys that act as CA's. I thought my account was closed but still reporting, but when i looked closely it was still open. My bill was about 3800. it is now a little over 7k in a little over 2 years with legal fees. I too have ignored them all along. A question for the group--Is it possible to pay cap one, as the account is still active, and if i did pay them, what would happen to my paperwork with the collection agency? i am not good at negotiating debt down. would it be a plausible idea to contact an attorney to help negotiate the debt down? i don't know if they are even willing to negotiate.

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You have been given good advice. Cap 1 does not close accounts they hire collection agencys and attorneys that act as CA's. I thought my account was closed but still reporting, but when i looked closely it was still open. My bill was about 3800. it is now a little over 7k in a little over 2 years with legal fees. I too have ignored them all along. A question for the group--Is it possible to pay cap one, as the account is still active, and if i did pay them, what would happen to my paperwork with the collection agency? i am not good at negotiating debt down. would it be a plausible idea to contact an attorney to help negotiate the debt down? i don't know if they are even willing to negotiate.
What are the legal fees? Did you already go to court with them and do you have a judgment against you?

If not, you can call and try to work out something with them, but there's no guarantee they will work with you. If you're lucky, you may catch them at a time when the account was pulled back from the CA. It happens.

Or you could tell them you won't deal with the CA, are willing to pay C1 directly, and ask to work something out.

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The only way you will know if they will negotiate is send them a letter and see what they say. Make them a reasonable offer to settle the debt like maybe the original balance, all the can do is say no or counter with their own offer. Be polite in the letter and own up to the debt and tell them you have been having a financial crisis. All they can do is agree or say no.

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In reviewing the TU and EX reports Cap One is different from the two other CC co in that there is a notation regarding "sold to" JDB whereas Cap One "acct closed by credit grantor" with Portfolio Recovery showing up in 12/07 as a "factoring company account". So they continue to add new negatives as the interest continues to grow. I have to still investigate as to the "last activity" date, which I believe is wrong which would then make a difference as to when the SOL would expire and hence any legal activity.

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If its not legal fees, its just the interest due to the balance.. My was originally $400 and ballooned to $1115 in a 2 year period due to interest every month. thats why i decided it was best for me to take the settlement offer from northland $642, to get them off my backs.

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Continued to review the CR and Cap one reports may of one year on one and june of the same year on the other. I am getting just a little paranoid about being too specific just in case there are agents out there trying to freelance.

Just reviewed my own records (I am a bit of a pack rat) and I show July of the previous year as date of last activity. My question is: is the date of last activity when the SOL start to run or is it 180 days from last activity?

thank you for your patience and advice

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I would make sure that the Cap 1 debt is not beyond the statute of limitations (sol) for legal collection before I contacted them or made any arrangements.

They might try and collect it, but if they haven't taken legal action yet and it is past the sol (you can use that as an affirmative defense if the sue), there really is nothing they can do except list it on your credit report.

Then after 7.5 years from date of first delinguency (dofd) they have to remove it from the credit report.

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  • 2 weeks later...

If you are sure an account from Cap 1 is yours "DONT MESS WITH THEM "!!!!!!! I sent them 2 OC verification letters and they sent me about 7 pages back on one . I havent got the second one yet but it doesnt look good . These accounts were charged off in 2003 so they are well out of SOL which is 3 years in NC . But they will stay on my CR till 2010 . My question is can I keep CA's they are going to send after me from adding NEW accounts to my halfway cleaned up CR and ruining all my hard earned work with new collections . I guess Im just gonna wait them out another 2 years they will be the only negative thing on my CR by the end of 2008 .

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I have 3 charge offs with cap1. They're just lying with the balances increasing every month on each. Have been for 4 years.

They are within the SOL, so I've been leaving them be. No way I can pay them anywhere near the $$ they want. I've heard bad bad things about cap1 and them keeping meticulous records.

I want it just go away, but realize I gotta do something.

What?, I dunno... :-(

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They sent me copies of 3 months statements but the letter said they do not have the original contract because I signed up on the internet nor does the paperwork they sent have my SS # on it . But its enough for me to leave them ALONE . My name is fairly common so it would be easy to fake paperwork .

PS I just went back and re-read the info Crap 1 sent, it looks nice on the outside BUT they said they do not have the original contract that my SS # or signature is on, they also have my name wrong, they only have a computer generated printout with my name and po box . I don't think i had the same po box in 2003 . Does anyone think a C&D letter or a FOAD letter would be my next move ?

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  • 4 weeks later...

Just received a civil suit by an attorney representing Cap One. His letter was dated 2.12.08, my DV was sent 3.6.08. His response was to file in my local JP court on 3.20.08 and sent, via regular mail, the paperwork which I received 4.17.08. I have 10 calender days (4.24.08) to respond. Claim is breach of contract (higher principle and interest) with attorney's fees ($700+) and court costs. Suit claims I did not dispute!

I intend to deny all "requests for admissions," due to not receiving anything back from the attorney or Cap One. I will file response by 4.24 with certified return to attorney. Additionally, the SOL is still in question and I am sure they will claim the account is still open. They file with CRA's every month for additional interest but last account activity was April 04 but EXP shows acct charged off 6.05.

It looks like an agreement will be the smart course. Contact Cap One directly while I respond to attorney or contact attorney directly?

thoughts, thanks to one and all

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Guest BucFan
Wow she got lucky.

Cap 1 usually doesn't let things go like that.

Yeah, she's always been lucky w/ things like that. Me, I get called out on everything of mine... plus a little of other peoples 'stuff' just for good measure.

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