Need Help Correcting My Mistake

[mj31s]

Hi everyone,

For a long time I was extremely ignorant about a credit card that I had in collections with Capital One, who sold the debt to a Junk debt collector (Howard Lee Schiff)

I had hired a debt management company Expert Financial Solutions to act as my power of attorney on my behalf and to deal with them.

Basically, to make a long story short, Schiff while full-well knowing that I had given written notice that EFS had full power of attorney over my debts, continued to contact me and harrass me.

To compound my ignorance, Schiff sent me a summons in August 07 for an amount of $8,500 where as my initial account with Cap One was closed at only $5,000.

I did the absolute worst thing in the world and signed a stipulation for judgment with them for the $8,500 and a promise to make payments of $150 per month.

I was a scared, passive consumer who panicked and was afraid of a lawsuit.

I've paid them 8 $150 payments and they are already trying to get me to pay in full by offering me a 75% offer of the amount......but these guys are lying to me about the amount of my debt in these letters. Basically, they are lying, leach scum of the earth.

Recently I spoke with my girlfriend about this (who is going to be attending law school in the fall) and she helped me organize myself and I've written the court and informed them of the numerous violations that Schiff committed.

I know I've messed up, and I don't know if there is anything I can do. I've been ripped off and I know it will never happen again, but I am more focused than ever to find out if there is anyway to rectify this, i.e., fight Schiff for illegal practices in collecting the debt, getting them to verify the outstanding balance on the debt, settling this claim for less than what I signed in the settlement.

Any help/advice is greatly appreciated.

[VeVe]

What are the violations?

[VeVe]

Also, Capital One doesn't sell debts (there are very rare cases where one slips past them and they sell if SOL is up, but again, it's rare).

Howard Lee Schiff doesn't look as though they are a JDB either. They're likely collecting on behalf of Cap1.

When did you last pay Capital One on the account?

[TTigggers]

I think I would call Cap 1 and try to work something out with them.

Like VeVe said Cap 1 doesn't sell accounts you are dealing with Their CA.

[mj31s]

Thanks for your responses guys.

Schiff basically called me at before 8 am and after 9 pm, they misrepresented the amount of the debt I owed and the calls were excessive (basically everyday).

Last payment to Capital One was in September 2005. I don’t have a problem contacting them, but when I closed my account, the balance was 5,000. In the stipulaton for settlement, the amount was 8,500. I’ve already paid 1,200. What amounts should I offer to settle (the 5k or the 8500) and what % range is recommended to start at?

Thanks again for taking the time to respond. It is greatly appreciated.

[VeVe]

If you have documentation that they called you during off hours, then that may be a valid violation. You would need proof though.

Calling everyday is not really considered excessive. Especially if you don't answer the phone when they're calling.

Odds are they aren't misrepresenting the amount of the debt. You said your account was closed with a $5k balance back in 2005. Capital One has likely been adding late fees and/or interest since then. They can and will do that.

Try to settle, but do it soon and wisely. You can offer whatever % you want, let them counter, you counter, etc. Just don't walk away if you can't get as low as you want. You really need to settle this one to avoid it going to court. There's a forum here for Debt Settlement. Check there for suggestions.

[mj31s]

Anyone have experience with Cap One's settlement %'s? That would be a useful tool in playing the negotiating game. Any input is appreciated.