WorriedInKC

Will Cap One settle and show zero balance?

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My Capital One CC account will cross the longest possible SOL (5 yrs) in 3 weeks time. I routinely check court records, there is no suit pending.

I owe them over $12,000. My account was closed at $5600 many years ago and is now showing up as a Charge Off account that is reporting monthly, and is the last remaining baddie that is devastating my FICO (low 600s).

My goal is to minimize the damage this account has on my FICO and settle it so that I may buy a house.

I am contemplating sending a letter offering to settle the debt for $4000 and in return I want the account closed and showing a 0 balance. If they refuse, I will agree to pay as much as $6000.

I know that Capital One will not accept a pay for delete letter. I just want my credit report to show that the debt is satisfied and showing a zero balance.

Has anyone tried this before? Is what I want possible with these crooks?

Note - in the past 5 years I have not once been contacted by Capital One. In fact, when I was shopping for auto loans they even sent me an offer for an approval up to $26,000...so I know that they know how to find me. It is very strange.

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I am in the same situation- a $800 credit card has ballooned to a $3000 charge-off. Mine is beyond SOL but is scheduled to stay on report for another 3 years. I got contacted once by an attorney office about this debt- I used the debt validation letter on this website (that is how I found the website) and haven't heard a peep from them. Everytime I dispute it updates as CHARGEOFF and is killing my score. I'm thinking of sucking it up and calling them next week. The thing I worry about is if they don't settle and it goes to a collection agency- is having a collections account on my report- I have none now.

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They will mark it "settled for less than full amount owed." or "legally settled for less than full amount due."

Unless you pay every cent, they will not mark it as Zero balance.

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My atty is sending a second settlement offer to them, good for 20 days. The first one he sent he was told could not be processed and given a different Cap One address to sent it to. I will post what, if anything happens to this one. I, too, was sent a letter from an atty about a year ago, spoke to them. They wouldn't accept what I verbally offered and said "they can't collect them all'.

My atty knows that the law firm has, or had this, but chose to write to Cap. One.

m

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They will mark it "settled for less than full amount owed." or "legally settled for less than full amount due."

Unless you pay every cent, they will not mark it as Zero balance.

May I ask how you know this? Keep in mind, I am NOT being sued. Why would anyone settle with them if balance is not zeroed? Settling but leaving a balance is suicide!

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May I ask how you know this? Keep in mind, I am NOT being sued. Why would anyone settle with them if balance is not zeroed? Settling but leaving a balance is suicide!

Such reporting is standard practice. It is nothing more than reporting the truth.

If you settle the debt in full, the tradeline will show a zero balance due. However, it will carry the notation SETTLED FOR LESS THAN FULL AMOUNT or something similar. Ironically, in terms of score, it makes no meaningful difference is you pay the balance in full or settle it. Solving the problem is positive. The fact that the problem existed at all is negative. You can't change history.

In terms of a mortgage, most lenders would prefer to see the debt settled instead of still sitting out there showing unpaid.

The damage to your FICO score is history. What has happened has happened and a creditor like Capone is not going to rewrite history to make things look as if there had never been a default. There are many reasons for this position and I will not try to explain them all here.

Seems to me you are best served by paying or settling the debt. Building and maintaining an excellent pay history going forward is the fastest way to improve your credit score.

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Such reporting is standard practice. It is nothing more than reporting the truth.

If you settle the debt in full, the tradeline will show a zero balance due. However, it will carry the notation SETTLED FOR LESS THAN FULL AMOUNT or something similar. Ironically, in terms of score, it makes no meaningful difference is you pay the balance in full or settle it. Solving the problem is positive. The fact that the problem existed at all is negative. You can't change history.

In terms of a mortgage, most lenders would prefer to see the debt settled instead of still sitting out there showing unpaid.

The damage to your FICO score is history. What has happened has happened and a creditor like Capone is not going to rewrite history to make things look as if there had never been a default. There are many reasons for this position and I will not try to explain them all here.

Seems to me you are best served by paying or settling the debt. Building and maintaining an excellent pay history going forward is the fastest way to improve your credit score.

The damage to my FICO is history and I don't want to run away from my mistakes.

However, it seems to me that if all the assertions in this thread are correct, by paying on my account I will be doing myself no service. I have every intention on settling on this debt but I am now being told that my credit will be JUST as bad by settling as if I do nothing at all? :confused:

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I'm no expert- but I do believe you may actually lower your score- but showing recnt activity on a old bad account. Just when I disputed and it updated - it tanked my scores.

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Hey Worried,

Here's my thoughts on your situation. I too have the same situation, to a lesser degree, in that I have a CO with Cap One from back in the day. A $350 card now has a $2500 balance, and it updates every month as a new CO. It is one of the 2 negative accounts left on my reports, and is having a similar effect on my FICO score. Heck, it looks like I'm even from the same city as you.

The difference in our situations, besides the amount of the debt, is the fact that my TL is scheduled to fall off at the end of this year, and yours looks like it will be on your report for another 2-2.5 years.

I recently applied for a mortgage, and my lender indicated that I was approved, provided that I take care of the Cap One account and the other negative account on my report. If I did not clear those up, they would not approve the loan.

So, assuming your lender will take a similar stand, you have to decide what is most important for you. On the one hand, settling probably will not improve your score, and therefore will not help in regards to getting a lower mortgage rate. However, NOT settling may prevent you from getting the loan altogether, so in that regard settling will most definitely benefit you.

You'll have to decide whether or not purchasing the house now is the best thing for you. Your score is probably going to remain the same whether you settle or not, as Cap One will report for the full 7 years. I know nothing about your housing situation, so I'll not make a recommendation either way.

I will, however, share that I decided against settling, and therefore against purchasing a house right now. I am betting that home prices will continue to drop over the next several months, or at the very least, not increase significantly by this time next year. So, I'll save my settlement money, let the TL fall off in 10 months, and reapply next year if I find a house I want.

I wish you the best of luck.

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To answer the question posted.

In my opinion, you should not attack this with the goal of improving your credit score. You really don't want to live your life based on a dumb credit score anyway.

The advantages of fixing this are:

1. You resolve the financial and legal risk. If you pay or settle, all that is behind you and you can quit worrying about it. If you don't fix it, Cap One will sue and then you end up with a judgment -- which will be far worse for you in terms of long term negative and a credit score in the crapper and cost you a lot more money.

2. You start rehabiliting your credit history. If you want that home, you got to start someplace and the sooner the better. As an ex-mortgage lender, I tell you that you will not, repeat not, get a mortgage loan with an outstanding judgment. The loan market is crazy today so you probably could not get a loan right now anyway -- but it will not always be that way. So, start positioning yourself for something good.

Personally, I would vote for #1 as a really good reason to take action. But, if you don't want to pay, then just don't pay.

Good luck.

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If you don't fix it, Cap One will sue and then you end up with a judgment -- which will be far worse for you in terms of long term negative and a credit score in the crapper and cost you a lot more money.

My concern with this advice is that it doesn't seem to take into consideration the OP's situation. The OP indicated that the SOL will be up in three weeks. It seems unlikely that Cap One can sue and get a judgement that quickly, but I could be wrong. However, it also assumes the OP wouldn't show up in court to defend themselves, which seems unlikely as well. While your post may be more or less accurate in certain circumstances, it relies heavily on assumptions regarding the OP's actions.

I will agree with you that one shouldn't make decisions based on credit scores alone, but I don't think that's the OP's intention, based on the original post. While it is a factor in the decision-making process, it doesn't appear to be the only factor.

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"Quote:

Originally Posted by astiman

They will mark it "settled for less than full amount owed." or "legally settled for less than full amount due."

Unless you pay every cent, they will not mark it as Zero balance.

you said,May I ask how you know this? Keep in mind, I am NOT being sued. Why would anyone settle with them if balance is not zeroed? Settling but leaving a balance is suicide!

I KNOW this because, prior to knowing my rights and what to do, that's what they did to ME. Your score WILL go down when they mark it that way.---astiman

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OP -- you are getting a lot of different points of view here. My original advice was based on the fact that you seemed motivated by getting the home loan much more so that avoiding the debt through expiration of the SOL.

If your goal is to get a home loan, be cautioned that it will be very difficult to obtain a loan with an unpaid chargeoff on your credit report -- even if the debt is OOS. I'm sure you read the papers and know that lenders are very gunshy today. Even back a couple years ago when the market was crazy hot and they would take about anything, a big chargeoff would likely be a deal killer.

If you want to wait the full 7 1/2 years when the debt falls off your credit report, fine. Otherwise, you will have to decide what is more important.

Good luck to you.

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Any update? If your in Kansas, why not check to see if you meet the income requirements for a USDA Guaranteed loan. I think as long as your middle score is >620 you won't have to worry about the chargeoff ( depending on the lenders underwriting- but I don't believe its a requirement for USDA ).

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Any update? If your in Kansas, why not check to see if you meet the income requirements for a USDA Guaranteed loan. I think as long as your middle score is >620 you won't have to worry about the chargeoff ( depending on the lenders underwriting- but I don't believe its a requirement for USDA ).

I always hate it when people don't update their threads, so I thought I would update mine.

Cap1 never sued. In fact, they did what many people on this board swore up and down they would never do: sold it to a JDB.

While I negotiate a (reasonable, IMHO) settlement with the CA, I am anticipating Cap1 to update their tradeline within 30 days (as required by law) to show that the account has been sold/transferred as a charge off with a zero balance.

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I was sued by Cap One and got it dismissed with prejudice. They will not alter the tradeline or delete it at all.

When I sent the CRAs the dismissal notice EX wrote back and said they couldn't use the info I had sent them. When I called them they said that the court case was a whole separate issue than the account and the account was still valid according to Cap One!!!!

I am in the process of trying to consult with an attorney becasue their report every month of a charge off is killing my credit and I am trying to buy a home . They have verified with each of the CRAs at least twice since the dismissal!!!!

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I was sued by Cap One and got it dismissed with prejudice. They will not alter the tradeline or delete it at all.

When I sent the CRAs the dismissal notice EX wrote back and said they couldn't use the info I had sent them. When I called them they said that the court case was a whole separate issue than the account and the account was still valid according to Cap One!!!!

I am in the process of trying to consult with an attorney becasue their report every month of a charge off is killing my credit and I am trying to buy a home . They have verified with each of the CRAs at least twice since the dismissal!!!!

I am also in a lawsuit with Cap1 on 4 accts 2 biz and 2 personal totalling 30k. But only 1 acct shows up on my personal credit report?.

Would you share some experience with me abt cap1 lawsuit. I am in Texas. I have a court date of July 1, 2009. They haven't budged or are not willing at all to make any concessions, or give me anything. Has that been your experience?. How have you dealt with them?. did you talk to their atty's. I am told and know I am judgement proof, however, it seems with Cap1 thats not just enough?.

Any help is seriously appreciated?

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Capital One will not budge unless you have something on them. In my case I had a lease that showed I didn't live at the addresses in the statements plus bank statements.

They will keep fighting until the last

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Do Not send these rat bastards any money, they promised in a letter to remove negative items if i settled and they instead posted paid not in full and hit my score for more points, i got it off when they sent it to a collector, Your acct should be with one?

Is it?

What state are you in? In most states like texas and florida the SOL is 4 years

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I am in texas working on CapitalOne Lawsuit. I dont really have as such anything on them yet, however, i have a lawyer who is looking into it to see if he can get good results. My fee so far with lawyer is $500.

I am judgement proof so remains to be seen whats on their mind?

will be interesting.

KJD

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Before I knew better, I"settled" with Crap One for 80%.....

That was 4 years ago. To this day they are STILL reporting the TL wrongly on ALL my reports, despite my disputes and contacts with the CRAs.

Settling with them sent my score down slightly. They will not update correctly for you.

I have heard that unless you SUE them, there is very little you can do.

I believe it.

Good luck.

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I am in texas working on CapitalOne Lawsuit. I dont really have as such anything on them yet, however, i have a lawyer who is looking into it to see if he can get good results. My fee so far with lawyer is $500.

I am judgement proof so remains to be seen whats on their mind?

will be interesting.

KJD

What is the date of last activity on your account? Are you close to SOL?

Cap1 is a bunch of crooks. I see all these people who are elated to be getting Cap1 credit cards...I want to tell them they're making such a huge mistake. Cap1 caters to low-prime to sub-prime markets, it is in their interest to create a pool of people with lower credit; hence their ridiculous pursuit to ruin everyone's credit indefinitely.

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