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Posted: Wed May 28, 2008 4:02 pm Subject: Trying to negotiate with Capital One

My daughter had a Capital One credit card that was charged off in April, 2004. She was young and unexperienced when she opened the account and misused it. I didn't know about it until recently, when she is trying to purchase a car and pulled her credit report and saw the Capital One entry.
The initial credit she had was $300. At the time of the card being charged off, it was up to $768. All of this is listed on her credit report. Now, just last week when we checked her report it showed a balance of $1,369. She called Capital One inquiring about the new amount and trying to offer a settlement amount of $768 if they removed the negative entries on her credit report.
They told her that their offer to pay it off is $950 in a lump sum. She was willing to send $100 a month towards the $768 amount, but they turned it down.
Today we are discussing it and she called them again, hoping to get someone else that was willing to negotiate the debt (amount) and now her new balance is over $1,400!!! She asked why, and the same lady told her that she was adding interest daily @.55 cents per day until she paid the amount in full.
We are trying to get an itemized list of all the fees and charges, plus the original application to see if all of these fees were on the application.
Is it legal for them to keep adding fees to the tune of .55 cents a day until the debt if paid off? What about the SOL? We are in Florida and here the SOL is 4 years. Aren't they supposed to stop adding fees after the account has been charged off? I am confused. Please feel free to reply.
Thanks for your responses.

Posted: Wed May 28, 2008 4:14 pm Subject:

My understanding is no more fees after w/o, something sounds fishy...What is SOL?

Posted: Wed May 28, 2008 5:29 pm Subject:

SOL = statute of limitations. What is w/o?
Thanks.

Posted: Wed May 28, 2008 5:35 pm Subject:

w/o = wrote off I believe. If I'm wrong someone please correct me. And this whole story about your daughter's capital one card definately sounds fishy I would for sure be trying to make them send you a list of all charges and fees listed so you can see where and what exactly they're adding to the account. I don't understand how they can still add interest and fees if they've charged the account off to me that makes no sense at all. I hope you can get them to send you some information.

Johnita

Posted: Wed May 28, 2008 5:43 pm Subject:

Johnita, I agree with you. I mean, this card is over 4 years old and they are still adding up charges on a $300 limit!!!
When I talked to the "case manager" today(after my daughter told them that I had her authority to discuss her account), she was not very helpful and told me that unless I was going to make a payment, she wouldn't be able to talk to me and hung up on me.
Very nasty!!!

Posted: Wed May 28, 2008 5:52 pm Subject:

There's something way fishy about this whole deal. It's extremely rare for a cc bank like Cap One to keep an account around after it's been charged off. Especially this long after. Normally charged off accounts are assigned to a CA pretty soon, if not sold outright. Is your daughter still dealing with Cap One, or a collection agency? The rep's behavior sounds more like CA than OC.

Posted: Wed May 28, 2008 5:56 pm Subject:

No, really it was Capital One, because she called the number listed on her credit report that belongs to Capital One... their Collections Department. That is why I was telling the "lady" that she should settle for the $700 amount because the SOL was running out soon, and it was better to get some money rather than none. She was really nasty and unless we were ready to make a payment, she refused talking to us...

Posted: Wed May 28, 2008 6:12 pm Subject:

Cap 1 is like Amex & Discover.They keep accounts close,tons of documentation,& love to sue.

Posted: Wed May 28, 2008 6:23 pm Subject:

So how do you think we should "attack" them?

Posted: Wed May 28, 2008 6:29 pm Subject:

I would contact the virginia department of banking.It regulates their home office.With them & the Attorney general of your state,you should have some help in dealing with them.Do realize that if they are collecting their own money,federal fdcpa does not apply.

Posted: Wed May 28, 2008 6:41 pm Subject:

I know that if they are collecting their own money fdcpa does not apply, but what should I ask the Attorney General's Office?

Posted: Thu May 29, 2008 7:43 am Subject:

Review the account documents and see how much of it is fees.They have a bad reputation of inflated fees.You will have to write a letter clearly explaining your account to the ag & ask for assistance in resolving this matter.You would merely be asking them for assistance in mediating this matter in the best way it can be done.

Posted: Thu May 29, 2008 6:59 pm Subject:

I checked the AG's website (Florida) but I could not find anything about regulating fees and charges. I will send the DV to Capital One and based on what they tell me, I will ask for the AG's help. I find it really "fishy" if the account was closed in 2004 or 2005, that the are still charging fees.

Posted: Fri May 30, 2008 4:26 am Subject:

Again someone correct me if I'm wrong, but I do believe you can't send a DV letter to an OC. I was thinking you can only send them once it's been sent off to a collection agency. If Capital one still has the account they would be the OC and won't be obligated that I'm aware of to do anything with a DV as being they are the OC they would have the right to collect. I do think though there should be something you could do to force them to send you a breakdown of those charges you desperately need that. Maybe that's where the AG could come in and help you get a copy of all the fees that they are charging you. A closed account should not be racking up the fees they're trying to say your daughter's account is racking up.

I really hope you can get this information from them.

Johnita

Posted: Fri May 30, 2008 4:32 am Subject:

Where do I get a copy of the letter to send them?

Posted: Fri May 30, 2008 6:59 am Subject:

If you need a debt validation letter template you can get one via my signature link, be sure to send the enclosure with it certified mail, return receipt requested.

If you are dealing with the original creditor however the validation letter would be a moot point as fdcpa law does not apply to the original creditor only 3rd party collection agencies.

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