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Cap One sold to Zenith - Is this good?


WorriedInKC
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My ancient Cap One account was finally sold to Zenith Acquisitions. It's not "in their system yet" so I couldn't get into details with the guy on the phone.

Zenith said if I pay the account within 45 days they won't report it. Zenith also said they think that if I pay this week, they will accept $2500 on a $13,000 debt.

Cap One indicates they will continue to show the debt under their name until it's paid even though they SOLD the account. Will this show a zero balance and be notated as sold?

If I pay Zenith the $2500, can they dictate CRA reporting conditions to Capital One? My guess is no. In other words, I want this showing as $0 balance. When Cap One handles the accounts themselves I know they will never show $0 for a settled account, but since it has been sold to a JDB, do they do this any differently??

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If indeed it has been sold, then crap1 will show "sold to another lender" and their balance will be $0 on your reports. Wait until that occurs BEFORE you assume its been sold. If it has been sold, then the crap1 TL will stay on your reports for at least 7 years...it will hurt less and less as time goes buy.

If indeed Zenith has bought it, they can not do anything about crap1's reporting.

DO NOT MAKE ANY AGREEMENT WITH ZENITH over the phone. Get it in writing BEFORE you send any money. Personally, I would never willingly pay a JDB anything unless ordered to by a court...but......up to you.

Note also that you should be getting a 1099c from one of these two people for the "forgiven" income...make room for the taxes.

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  • 2 weeks later...

Just wanted to provide an update -

I called CapOne twice, spoke to two different representatives, and asked them repeatedly to clarify if the account was sold to Zenith or if Zenith were collecting on behalf on CapOne. Both reps confirmed that the account was SOLD.

I then spoke with several Zenith people including a collections manager. They also stated the account was sold. I also received something in the mail stating that the account was purchased by Zenith.

I asked about how CapOne would report to CRA if I settled. They said they would send me a letter stating the account was paid and that it was my responsibility to send that letter to CapOne to have CapOne update. My guess is that this is BS. I am guessing CapOne is simply going to update "$0 balance - Sold" regardless if I pay Zenith or not.

By the way, I did settle with Zenith. I am waiting for CapOne to update the CRA with a $0 balance and Sold status rather than the interminable "Closed/Charge Off".

My question is - if CapOne does not update their tradeline to reflect the account has been sold and the balance is $0, do I have any legal recourse?

As of this moment there are not any Zenith tradelines showing up on my report.

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If indeed Crap1 sold it, and they do not update their TL immediately (within the next 30 day reporting cycle), then you have them on FCRA "accurate reporting" violations. (See the link at the top).

I hope that whatever you meant by "settleed with zenith" means you got something in writing from them...if it wasn't in writing, it didn't happen...which means they may sell the balance to someone else.

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You have no recourse.

You settled with a JDB.

This will not affect your Crap One TL in any way.

IF you don't have an "agreement in writing" with Zenith, they now can report a NEW TL, as a "paid collection." Since it's a NEW paid collection, it will tank your score if they report.

Also, if you did not get it IN WRITING that they will not sell the 'balance' to another JDB, be prepared to go through another collection attempt for the balance, from another JDB.

This is why you should NEVER 'settle' with a JDB.

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astiman,

I have only verbally settled, I have not given them any money yet.

Please read what willingtocope wrote just above you. I have done a lot of research in the last day and what he/she says seems to be correct. If the account is sold the OC tradeline must show zero balance and "sold" status.

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I did read what willingtocope said.

If you are not 100% sure this has been sold, then don't do anything with Zenith.

If you so much as say verbally that you want to settle, you have acknowledged your debt WITH THEM.

When did Zenith offer credit to you? When did you get your "Zenith" credit card?

WHY would you ever want to pay anything to anyone that you don't actually owe money to?

I'm sorry to sound brutal or direct, but these are actually mistakes I made once, and I don't want it to happen to anyone else. If you owe money legitimately to an OC, fine. Settle. But a JDB is NOT an OC.

Good luck...please be careful in how you handle this....

Edited to add: BTW I notice in your original post that this is an 'ancient' Crap One account. If this is out of SOL, likely you don't owe money to anyone. Not legally, anyways. Just a thought.

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I am positive that this debt has been sold. Both parties confirm it has been sold and I have also been sent something by mail that says it has been sold.

I have having a heck of a time getting Zenith to agree to anything on paper. I told them I have X amount I am willing to pay, but that is conditional on them not selling the debt remainder to someone else. They laughed at this notion and said that "we don't do that here". They told me if I paid the debt within the first 45 days they won't bother to put up a tradeline to the CRAs. Again, nothing in writing.

So that's where I stand right now. We agree on the $ figure, just not on how the deal will go down.

Thanks for your advice, I am trying to be careful, but at the same time I don't want this to drag out and have them throw a tradeline on there if I can avoid it.

What I have done in the past with some success is to pay off a CO...wait a few months...then hit the 3 CRAs with a debt validation letter. If the debt has already been paid, the JDB seems to not bother verifying, and it drops off. I have done this more than a few times, it seems to work OK (but not always).

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I am positive that this debt has been sold. Both parties confirm it has been sold and I have also been sent something by mail that says it has been sold.

I have having a heck of a time getting Zenith to agree to anything on paper. I told them I have X amount I am willing to pay, but that is conditional on them not selling the debt remainder to someone else. They laughed at this notion and said that "we don't do that here". They told me if I paid the debt within the first 45 days they won't bother to put up a tradeline to the CRAs. Again, nothing in writing.

So that's where I stand right now. We agree on the $ figure, just not on how the deal will go down.

Thanks for your advice, I am trying to be careful, but at the same time I don't want this to drag out and have them throw a tradeline on there if I can avoid it.

What I have done in the past with some success is to pay off a CO...wait a few months...then hit the 3 CRAs with a debt validation letter. If the debt has already been paid, the JDB seems to not bother verifying, and it drops off. I have done this more than a few times, it seems to work OK (but not always).

...if that worked for you, then you should do it. I've always gotten everything in writing no matter what...If you are going to give them $$, they need to compromise with you.

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  • 2 weeks later...

I wanted to provide an update.

My EQ just jumped up 49 points. Score Watch sent me an email saying that my balance has gone from $13,xxxx to $0 on this account. So Capital One definitely did change the balance to $0 which is exactly what I wanted. I can't see what the status of the account is, I am hoping it is now reporting as sold/transferred.

This was the last negative on my CRAs that was still updating monthly, I pray that it becomes less damaging each month now until the account hits the 7 year mark in Feb 2011.

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