muddlethru

Capital One Credit Card - What to do??

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I received a letter from alliedinterstate regarding my Capital One Credit Card dated May 27th. It says it has been placed in collections but my payment needs to be sent to Capital One Bank. So, has this been sold or is it still owned by Capital One? What is my best way to handle this? Due to gas and reduction of income I CAN NOT pay this bill that keeps adding up due to overlimit fees, late and interest. They call my phone like 10 or 12 times a day non stop. These people scare me. What can I do and what can they REALLY do to me not paying this? I live in Texas.

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I have... they just tell me I must pay the past due and all fees associated with it..... next they say "How would you like to pay this credit card or checking account?" Everytime I see their number come up it makes me sick at my stomach litterally. Also, reading threads on here I believe I have read that you should NOT speak to them on the phone. Am I right?

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Muddlethru, please calm down. No need making yourself sick over this. Call Cap One back and see if they have a hardship program. If they say no, then send a letter to them explaining your situation and that you would like to close the account and set up payment arrangements in order to pay the outstanding balance.

How is this showing on your credit report? You will want to see if you can negotiate for the most favorable treatment of this on your credit report.

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Can or WILL they take some of these charges off or is there really nothing they can do? I keep reading how you can negociate this down... I am at a loss. I believe the account is now 147 days past due last I heard from the collection agency. Also, I am still confused if Cap One still owns it or if they sold it....From what I read on here if it is sold then I can negociate....But the collection paper still says to send the payment to Cap One. I am confused and need to know best way to handle (and cheapest).

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[They call my phone like 10 or 12 times a day non stop.]

If this is true and you want it to stop immediately then file a harassment complaint with your local police. If you can stand to not answer the phone then I would definitely file a complaint with TX AG.

You need to relax and remember that you are in one of the best consumer friendly states and I hear your AG is very helpful.

If they are telling you to send payment to Crap One then they are only assigned to collect on Crap One's behalf.

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So if they are collecting on behalf does that mean they can not negociate yet? Should I just try and hold on??? Does Cap One sell they debt? If I could pay all past due and make the large monthly I would, but I cant due to change in job. Is there a form I send to creditors telling them to not contact me?

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I would negotiate with Capital One on the fees and interest. It appears Captial One is what is called a “fee harvester”. The outfit preys, IMO, in the sub prime market of consumer accounts.

If Captial One is not compromising, there is always the dispute route and hoping Capital One goes to court with you. The Judge will then dictate the terms, not Capital One.

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I have... they just tell me I must pay the past due and all fees associated with it..... next they say "How would you like to pay this credit card or checking account?" Everytime I see their number come up it makes me sick at my stomach litterally. Also, reading threads on here I believe I have read that you should NOT speak to them on the phone. Am I right?

As Swirl mentioned, you should give Capital One a call and explain your situation to them. Ask about a hardship program. Be proactive about your situation instead of reactive. If you are bothered by the calls and truly feel that you are being harassed, use the consumer protection laws of your state to your advantage.

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I notice no one addressed your comment that you should stay off the phone with "them." If it's Cap One calling you, you should most definitely talk to them! Don't ever avoid an OC. Lovebug is 100% correct, be as proactive as you can (at 140 days late) in this situation. Don't let it wait.

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I notice no one addressed your comment that you should stay off the phone with "them." If it's Cap One calling you, you should most definitely talk to them! Don't ever avoid an OC. Lovebug is 100% correct, be as proactive as you can (at 140 days late) in this situation. Don't let it wait.

I agree with Leslie and LB, the sooner you get a handle on this the better off you'll be. Don't talk to the CA. Talk to Cap1 and explain your whole situation.

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This is your collective advice?

First, the COLLECTION AGENCY (CA) that Capital One sent after you, sent you a DUNNING letter, dated May 27th. You need to IMMEDIATELY write up a "Debt Validation" (DV) request and mail this CMRRR (Certified Mail Return Reciept Requested) so you have proof you mailed it.

This request is to have the collection agency DEBT COLLECTOR obtain from the Original Creditor (OC) a copy of the documentation informing you about the debt, what it is for, how much the alleged balance is, etc. The CA will then mail a copy of this to you.

The importance of doing this right, is to lock in and establish YOUR RIGHTS under the law, the FDCPA Fair Debt Collections Practices Act. If you do not send the TIMELY DV, by timely the law means within 30 days of them sending you the DUNNING letter, then you will not have established your rights in this collection activity to the extent you need to.

So read up fast on the DV, what it should say.... it's a very short simple request... and mail it out to the CA TODAY!!! Before the post office closes.

Now, the experts here tell me I am dead wrong, so take this advice with caution, but especially as you are being harrassed on the phone, this is the simplest DV I can think of:

This is not a refusal to pay, this is a request for Debt Validation of the alleged debt claimed in your May 27th letter to me. It is inconvenient for you to contact me by telephone at any time or any place, You may contact me in writing as regards this matter.

This will meet your requirements under the law for having timely requested debt validation. It will also hopefully stop the annoying phone calls. Just how effective that will be will depend on how stupid the CA is and how strong your state consumer protection laws are.

But the CA, after a few days to actually recieve your letter and digest it, will have to STOP collection activity with you until they contact Capital One and obtain debt validation documentation, and then forward a copy of that to you.

If they continue to call, write, or otherwise engage in collection activities BEFORE providing you with the debt validation documentation, they would be guilty of breaking the FDCPA (and possibly state law) which forbids "continuing collection activity" until a timely DV is properly responded to.

This process boxes them into obeying the law, and sets up the predicates for them to violate so you can SUE or countersue them for FDCPA, etc violations.

But the most critical thing at this moment, is to write up a DV request and mail it to them CMRRR today to make sure it is sent within the 30 day time limit.

As for Capital One, the OC is not subject to the FCPA laws, but is subject to the FCBA Fair Credit Billing Act, and the FCRA Fair Credit Reporting Act, as well as possible state consumer protection laws (you will need to read/research your state laws).

One of the potential areas of FCBA violation is how COne accounts for fee's. They consider FEEs to be PURCHASES, add them to your balance and then charge INTEREST on them. FEE's are not an extension of credit, and so there may be some ammo for you in this.

Most of the time, by the time someone comes forward with COne issues, the 1 yr statute of limitations on FCBA violations has long since passed. But for you OP, you have a fresh case with the ability to look at this issue for potential help or leverage in getting COne to drop/reduce/whatever the FEE's which we know can be INSANE... $25 late, $25 overlimit, and 27-33% interest rate on top of it.

The advice, given you wont be getting back to even with them based on your financial situation, getting the account CLOSED can at least put a stop to the late and overlimit billing fees.

For now work on getting the DV out in time.

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I don't think the DV process is necessary here; at least not at this point.

This is not some old debt that some CA has started calling about out of the blue - there is likely nothing that the CA could provide that the OP doesn't already know (in fact, I suspect that the OP already knows more than the CA could tell him/her). Further , if the DV process is needed, if my understanding is correct, it can be started at any time without loss of rights since the OP is a resident of Texas. So; no need to rush into it even if it is needed.

That said, the other advice is dead on - your best chance of getting the mess straightened out is to work this out with Capital One and it's likely that any deal you can work out with them is going to be a lot better overall than anything a CA would be willing to do (if they are willing to do anything).

I'd say you have a very good chance of negotiating away some of these fees and interest charges but do understand that these charges exist/they are able to charge them because you agreed to them when you established the account. So...just keep in mind you are asking for some mercy here...I think if you approach it that way you'll be more likely to get a good outcome...you just need to get someone on the line that has the authority to say "yes" rather than "no".

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