giving Capitol One a try.
Date: Wed, 12/23/2009 - 16:15
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[COLOR=black][FONT=Humanist777BT-RomanB]Dear Capitol One Bank:[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]In June of 2009 realizing that the current business climate was having a serious negative impact on my business and household income I contacted your customer service department and requested that this account be closed. A review of my most recent credit report does not reflect that request and shows that the account is still open.[/FONT][/COLOR]
[COLOR=black][FONT=Humanist777BT-RomanB]Please close this account and notify the credit reporting agencies that it was closed by the customer in June 2009.[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]Unfortunately, business continued to fall off during the late summer and fall of 2009. On June 21, 2001 realizing that I was not going to be able to keep up the required minimum payments I contacted all of my creditors, Capitol One being one of them. [/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]At that time I explained the drastic reduction in my business and the fact that my wife was out of work on disability. Because of these two facts, any cash reserves we had had already been used up and that our focus needed to shift to staying current on the secured loan on our vehicles and home. All of my creditors except Capitol One recognized my predicament and offered some kind of a hardship or work out plan to help us through the financial crunch we are facing. [/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]For clarity please allow me to repeat that. “All of my creditors except Capitol One recognized my predicament and offered some kind of a hardship or work out plan to help us through the financial crunch we were faced with. “ [/FONT][/COLOR]
[COLOR=black][FONT=Humanist777BT-RomanB]Capitol One was unwilling to shoulder up with the other creditors and help us through a rough time, in the hope that better times were coming. Therefore I managed to find a way to stay current with the other creditors in accordance with the payment plans we had agreed to. With no funds left I had no choice but to forgo making payments to Capitol One.[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]According to my math Capitol One has added just over $900 to this account balance in interest and fees since I attempted to come to a mutually agreeable compromise. As of the latest statement dated Dec 13,2009 the inflated balance is now $4,820.50[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]Please be assured that if it was within my power to do so this account would be current. Furthermore, if the funds were available the account would be paid off in full. Unfortunately, circumstances beyond my control prevent this.[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]As mentioned above my business is off drastically. In fact we have seen no income from the business in the last 6 weeks and only have a very small amount of work scheduled for January. Between the work I have scheduled and the disability my wife is drawing, we can just manage to keep the house, car [/FONT][/COLOR]
[COLOR=black][FONT=Humanist777BT-RomanB]and truck payments current. Based on the projected income for the next 3.5 months, my business is seasonal, I will need to contact the other creditors and notify them that I will no longer be able to make the agreed monthly payments. [/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]As Capitol One is the only creditor presently reporting my payments as late I felt it prudent to contact you first and offer a settlement. Please be advised that I will be meeting with an attorney who specializes I financial matters on Jan 4, 2010 to evaluate my options going forward. [/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]Therefore, The following offer is as valid until January 3, 2010. This offer is void as of midnight January 3, 2010.[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]I offer to pay Capitol One Bank 10% of the balance on account # XXX as reported on June 13, 2009. The amount of the payment will be $390.00 Payable by check to Capitol One Bank by 1/15/2010.[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]In exchange for this negotiated settlement payment Capitol One Bank NA agrees to report the account as “Paid as Agreed†to the three major reporting agencies (as well as any other agencies that the bank reports to) and to delete any reference to late or delinquent payments. In the event that Capitol One can not, for legal reasons, report the debt as noted, Capitol One shall remove any and all reference of any debt or relationship between __NAME__ and Capitol One Bank NA or its affiliates. Capitol One Bank further agrees to provide the account holder with a 1099-c reporting a reduction of debt, or forgiveness of debt in the amount of $4,430.50.[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]Capitol One agrees that this will terminate all business relating to the above referenced account number and that no further debts are owed on this account.[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]Please return this letter signed by and officer or manager authorized by Capitol One Bank to enter into such arraignments by 5 PM EST on January 3, 2010. In order to expedite the process you may fax you signed agreement to XXX-XXX-XXXX and forward an original by mail to the above address. [/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]Sincerely[/FONT][/COLOR]
[COLOR=black][FONT=Humanist777BT-RomanB] [/FONT][/COLOR]
[COLOR=black][FONT=Humanist777BT-RomanB]ME[/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB]Agreed to by_________________________ Date __________________[/FONT][/COLOR]
[COLOR=black][FONT=Humanist777BT-RomanB]Capitol One Bank NA [/FONT][/COLOR]
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[COLOR=black][FONT=Humanist777BT-RomanB] [/FONT][/COLOR]
[COLOR=black][FONT=Humanist777BT-RomanB]Printed name of party signing for Capitol One Bank[/FONT][/COLOR]
That is an excellent letter! It may, unfortunately, fall in fron
That is an excellent letter! It may, unfortunately, fall in front of blind eyes! I sincerly hope not! I have gone through this with a certain Healthcare company. You write a great letter and you get a form letter in return that does not even address the issue! My attorney even sent a letter threatening a suit and they sent me another form letter. Your letter is a shoot from the hip letter and should draw much attention! Good luck!
You can send it and see what they say, but I doubt they'll take
You can send it and see what they say, but I doubt they'll take a 10% settlement. Cap1 likes to sue people. And per my court's website, I see them suing people for as little as $1347. (Click the link -- they're going after this guy's bank account and wages.)
The reason I say they probably won't take 10% is because if they sue you and get a judgment for the full balance, even if you file a chapter 13 bankruptcy they will get at least 10% through your bankruptcy plan. (There's also a chance your bankruptcy will get dismissed if you ever stop paying the trustee [in my experience, about 75% of my customers that file 13 end up getting dismissed for non-payment], and then they can resume the lawsuit and seek full balance).
The only time they'd lose would be if you file a Chapter 7 (depending on your situation, you may not be able to). And quite frankly, if it comes to losing $390 (your 10% offer) because you file a 7, it's pennies in the scheme of things. You have to keep in mind, this is a game and a gamble for them, and the odds are that they can get you to pay more than 10%.
Cruncher and Frogpatch, thanks for the input My thought was th
Cruncher and Frogpatch, thanks for the input
My thought was that if I go 11 they get 10% over 3-4 years. if 7 they get nothing (and considering the housine market I may be able to do a 7) If they sue they have lots of costs and still stand in line. I thought of sending thisto copr and may do that as well.
Bill
PS it was a good exersize at the very least