Any new Capital One settlements?
Date: Mon, 07/06/2009 - 10:30
My account is approaching chargeoff & has been assigned to Global Credit & Collections. I am approaching chargeoff and would settle for 60% if they would divide it up. I can't get them to work with me at all.
If your account has already been assigned to Global Credit, I th
If your account has already been assigned to Global Credit, I think you should immediately call them up and negotiate for a settlement plan in order to avoid charge off in your credit report. This is because charge off listing is very bad for your credit score. You can easily settle the debt between 50 and 60% of the outstanding amount if you can negotiate.
Hi SC, Obviously you missed this part: Quote:I can't get them t
Hi SC,
Obviously you missed this part: Quote:
I can't get them to work with me at all. |
Even though it is true a charge-off is bad on your credit score, it's already heavily beaten up by the default.
The original creditor is not likely to settle before charge off (generally 180 days after default) but there is certainly a chance that they might just before the charge off especially if it can be shown that they will likely recover more of the past due amount. Did you try sending Cap One a settlement offer by mail detailing your situation?
Global Credit & Collections has been sued in Federal Court 38 times, 32 of those in the past 12 months (!) so they are likely bad collectors so it is best to put some effort in avoiding them, unless you are prepared to document any abuses they may shower upon you and sue them yourself.
I just recently settled an account with Chase that will read "se
I just recently settled an account with Chase that will read "settled" on my CR. Would my credit score benefit any from trying to get them to go with a hardship plan on this account instead of continuing to try to get them to settle? They are still reporting my account as open, and have not yet increased my APR to a default rate.
Once the tradeline shows a default, only time will really help.
Once the tradeline shows a default, only time will really help. Once they are settled and closed, your score should start climbing around 6 months or so later. Another major aspect of your score is your available credit to credit extended ratio. Payment history and Amounts Owed make up a full 65% of your score. See MyFICO's explanation on what's in your score for more detail:
"http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx"
Once you get that big hit from the default, there is no quick way to recover. Even if you paid it in full a day after default, it would still take around 6 months or so to begin going back up.
As far as when the report is updated, that depends on the creditors reporting procedure. Some may report daily, some weekly, some monthly.
A hardship plan (also called Debt Management or Debt Negotiation) most often requires you to be current on your payments. But yes, that is a *lot* better on your credit score than letting it default.