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Cougar · Posted: Sun Dec 30, 2007 1:04 pm Subject: Capital One reports on CR

I know there is something wrong with this but I'm missing it somewhere. Its not just Capital One that is doing this, but it's the biggest offender...

Although Capital One has charged of this account (balance of $300) and it has appeared this way for years, they are still increasing the balance at a very high rate like it was an open revolving account. After 2 years it inflated from $300 to $1100. I know this is wrong, but under what context? Is there something in FCRA?

And since this is not the only account, I know I saw it somewhere on these boards, but how legally can I hold them to what I may actually owe them?

Posted: Sun Dec 30, 2007 2:34 pm Subject:

Request statements as well as an explanation as to how they have calculated the amount they claim you owe. Also review the original card agreement.

Posted: Sun Dec 30, 2007 9:25 pm Subject:

You need to keep in mind that the balance doesn't freeze simply because they charged an account off. They can still charge you interest every month at the default rate. I'm not taking their side, but many people believe the interest has to stop when an account is charged off, and that is simply not true.

FCRA simply says they have to report accurate data, it doesn't prescribe how they can charge interest or other fees. You might look to Reg Z or your state laws to see what they can legally charge.

You may have room for dispute if they sold your account to a JDB. If the JDB wants to continue charging interest, then they need to be licensed to do so; if they are merely acting as a CA without a sales finance license, then they cannot charge interest.

Like JCEMT said, you can request a detail explaination from CapitalOne of how they calculated your balance. If Cap1 doesn't own the debt anymore, then dispute the debt and request validation from the CA who does.

Cougar · Posted: Sun Dec 30, 2007 11:12 pm Subject:

The default rate of the apr for the credit card? The thing is I think they are charging late fees on top of everything else.

But if it is the DC that is tacking on the fees, do they have to prove they can when I validate?

Posted: Mon Dec 31, 2007 2:38 pm Subject:

They usually can charge the default rate until the account is paid, and those default rates are sometimes as high as 28-36%. I think they can still charge late fees too -- anything that's in the agreement they can continue to assess even after it's charged off.

I looked at my state laws (IL) and found a good defense that I would use: IL laws say that on open-ended credit, if they are going to charge any interest or fees, then they need to send you a monthly statement.

Most credit cards will stop sending monthly statement after they charge it off. So my argument would be, if they haven't been sending monthly statement, then they are breaking the law when they add more charges to the account. Then again, that is in Illinois. You might look up your state laws to see if there is similar statutes.

If it is the Collection Agency tacking on fees and interest, you can certainly demand them to prove they are legally able to. Ask them to prove that they are licensed by the Dept Financial Institutions to charge and collect interest, and not just licensed as a collection agency. In Illinois we call it a sales finance license, and the state would come in and audit me every year to make sure I'm not charging breaking any rules. I'm sure most CAs aren't actually licensed to charge interest.

Posted: Wed Jan 02, 2008 3:45 am Subject:

Send them a letter requesting for the validation of the debt; make it sure that they include the proof that they are authorized to collect the debt and also an account statement that shows the exact calculation of the amount they are claiming you owe. You gotta know where all the extra came from ! After all it is your right!!!!

Profanity deleted!Cajunbulldog