Capital One Billing Statement 1 Year After Charge Off

[QM07]

Hi Everyone:

I recently encountered something new with Capital One, which I have not experienced in my time over the past few years in repairing my credit. That said, Capital One alleges I maintained an account with them, the last payment upon which was made August 2008. The account was charged off around February 2009 and varying, unsuccessful collection attempts from different CA's ensued. The balance, at time of write off, was indicated to have been about $544.

I did not receive anything regarding Capital One for over 12 months. Yesterday, I received a new billing statement from Capital One indicating a due balance of $744 for this account, which was very surprising. I've never had a company send a new billing statement after a charge-off, let alone over two years after the delinquency.

Sincerely,

QM07

[ikuomanero]

In the spirit of CYOA, you should send the following letter back at them:

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Dear Capitole1,

In regards to the bill that you sent to me dated mm/dd/yyyy, I hereby dispute the bill in its entirety.

Regards,

QM07

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This way, if they do sue you, you can defeat their "account stated" monster. Make sure you send the letter CMRRR.

[cinnamngrl]

it seems that a lot of people got these bills from Crap1 this month. I would file a complaint with the OCC or FDIC

[WhoCares1000]

You could file a complaint but then, the question would center around "Is this legal"? If you owe the debt, then certainly they have the right to try to collect on the debt as the OC and can send a bill at anytime. This might also be a method to get around the laws in states such as WI that require a demand letter be sent prior to lawsuit.

The biggest issue I think centers around the little message for people who have discharged the debt in BK. The truth is that you still owe the debt, the collector is barred however from trying to collect it. Is sending a bill an attempt to collect the debt by the creditor regardless of what the small print contains? The next thing is SOL or court dismissed debts. Again, you still owe the debt. The creditor however cannot use the court system to enforce the contract so the contact would probably be legal in that case.

Cap 1 is known for pushing the envelope in methods to collect old and uncollectable debts. They were the first ones who decided not to report iib in credit reports and wait for those with discharged debts. They did that until a BK judge slapped them a little bit for doing so. Will be interesting to see where this method leads and if it becomes a method to collect on an old debt that works for Cap 1 or becomes a legal liability.

[cinnamngrl]

well, it seems like this is happening to a lot of people. many seem unaware that owe Crap1. Filing a complaint with a governmental regulating agency is helpful because you can get information about your situation. it brings attention to the issue which is good for consumers. you don't have to be sure that Crap1 did anything illegal to complain. these agencies work for you.

[irish1947]

Hello, I have something very similar happen to me a few days ago. I got a statement on an old charged off closed account from Capital One demanding payment for about $5000. The origional write off was for $1500 back in 2002.

I am interested in how to respond to this statement. The SOL is also up on this accout and the account has not been on my credit reports for several years.

hope someone can help..

[WhoCares1000]

Just write a letter back to Crap One stating that the SOL has expired and that you do not plan on paying this. You also do not want to hear from them again and if you get another statement, you will discuss with your attorney on how to stop them from sending statements.

[kitefish]

I got one for a account that is at/very near SOL.

Many members have received these.

If you are out of sol,and they are not reporting on your credit report let 'em rot.

Don't bother with the BBB,if you must,complain to your state's AG.

Or,in the alternative,shred a few supermarket ad papers and mail them back to the ,because that's the value of what they sent you.<g>

If you are within SOL,just be quiet and peer over the rim of the foxhole.

[kitefish]

just re-read OP!

You are within the SOL,do NOT contact them OR poke at 'em with any agency complaints.

Keep an eye on your local court website for a suit and any mail/summons/ process server.

While it seems unlikely they would sue for a relatively small amount, most OC's have become more aggressive since the financial melt-down.

Crap one has a well earned reputation for skullduggery.They appear to be casting a big net for any fish.

[LeafMeBee]

Hi - Adding to this post because I'm in a similar situation, except that Cap1 is within the SOL.

One Cap1 card charged off in 2007. Orig. limit/bal. $800.00. (Plus a $29 past due fee so they could charge another $29 for over-limit fee + interest.)

Before the 2007 charge-off, once I was re-employed, I'd attempted to negotiate w/them: Add overdue fees and interest back to principal, then I can continue paying monthly min. at 3% of balance. (Silly me, they balked--either $350 in overdue pmts. + int., or nothing at all. Guess which path I took.)

Last week, received a statement for this CO account as if it were still active: $2,400 +27% APR interest retroactive for previous 3 months = $2,500.

It's within state's SOL. And I've been repairing my credit, so wish to eliminate this debt. I know OC is entitled to continue collecting interest on unpaid CO. And a judgment would allow 12%. Also read that borrower should deal with OC whenever possible. Also read that SOL is reset if I resume monthly pmts. (or any pmts at all).

Just want to know if what they're doing is legally allowed, and what my options are as a debtor? Any recommendations? (Besides peering over the foxhole--been doing that for awhile). Thank you!

Edited October 13, 2010 by LeafMeBee

[WhoCares1000]

You could either do nothing or you can offer $1000 as settlement of the debt (that allows for some interest but not the usury rate they are charging.

If you do nothing, they could possibly sue you but you could make an offer on the courthouse steps too. Many people do. They could also do nothing and in 4 years, you are home free.

If you pay, you could get a 1099 for the difference and the credit reporting period would restart BUT you do not have to worry about them suing you and you can get them out of your life.

[LeafMeBee]

You could either do nothing or you can offer $1000 as settlement of the debt (that allows for some interest but not the usury rate they are charging.

If you do nothing, they could possibly sue you but you could make an offer on the courthouse steps too. Many people do. They could also do nothing and in 4 years, you are home free.

If you pay, you could get a 1099 for the difference and the credit reporting period would restart BUT you do not have to worry about them suing you and you can get them out of your life.

Thanks very much for your response, WhoCares1000. You sound very knowledgeable, and you've provided a few very viable options that I'll need to consider. I'll need to do more research. (For example, what happens if I wait it out and they decide to sue on Year 6 when it's $5K?) Didn't know that forgiven debt is taxable or that a settlement would restart SOL. I've also read about Pay to Delete letters, but skeptical that Cap 1 would agree. Lots to think about--thanks again!

[WhoCares1000]

This is the risk you take if you decide to do nothing. Of course, in that time things can change and Cap 1 may find out they cannot charge 27% interest on their cards amongst other things. You can also set up a boilerplate answer in case they do try to sue you.

As for the agreement, that would start the SOL IF you do not get it in writing that your offer settles the debt. The only thing it restarts is the reporting period (since I do not worship at the alter of the great FICO, I do not care really). You can ask for a PFD but I am guessing they would want the full balance to do that.