Capital One Settlement Offer

Hi Randy,
Capitalone basically does not settle in the sense we normally are familiar with. So, this is probably as good as it gets. However, the longer you drag it out the longer it will stay on your credit. It must be deleted at 7 years from final settlement date, if not sooner. So, if you dragged out the payments you could add years to getting your credit back.

If you can't do that, don't agree to it. I would tell them you don't have it and offer $12,000 lump sum in 10 days. Whatever you do GET IT IN WRITING.

P.S. Capital One does sue often, so if you don't settle you might be sued. But even so, you can still settle for less than full amount.

Very dangerous, I say. Capitalone loves to sue and rarely settles for much less.

Credit reporting 7.5 year SOL starts from the date first payment was missed and is never re-aged due to a settlement payment unless done so in violation of the FCRA. Re-aging occurs when accounts are brought current.
Willfully or unintentionally, doesn't matter. Comes off after 7.5 years. You do have to be diligent in making sure that it does. There all manner of foul ups with CRA's & furnishers.

Capital One may not appreciate my blog post tomorrow or Monday.

Dano - My Capone blog will resonate with you as relates to your AMEX account.


Mileage may vary

I have settled 2 cards with Cap One. The first was relatively easy and was my first setlement at 50%. But the 2nd one was a bear. It charged off and went to the recovery department, the lady there said they would never settle and said I could pay anything I wanted until paid off but they would not ever settle. Four months later it went to United Recovery and I settled with them on the first phone call for 55% I think. Not a great settlement but it was done with. Oh that first contact took me all afternoon calling back and forth to get this done and talked to 3 different people as they passed me off to others who were getting sterner and sterner. Really bordering on rude but they just wanted to belittle me for a while I think.

The collection agencies that they assign the accounts to seem to have more leeway in settling. The way the girl explained it to me is that they have to settle a certain percentage of the dollar amount they are assigned to collect on. It was the last week of the month and they were trying to reach their goal. But before they settled they really tried everything to get me to pay something. They went through my entire credit report and told me that I should borrow from other lines of credit (all were closed but cr showed open). I informed them that any borrowing just prior to a bk filing is illegal and I would not do it even if I could. She put me on hold (probably to check if this was true) then came back and starting talking settlement.

The key for me was that they had no other options. I told them I had business debts that amounted to tons of money and they were not on my credit report so there was no way for them to verify that information. I told them I was filing bk but wanted to settle my personal debts as I felt an obligation to do so on the personal stuff.

Things that may be causing heartburn for a debtor that don't show up on a credit report and tax debts to IRS and your state and business debts for the most part don't show up either. So they finally took the offer and it had to be paid in 3 days so that it hit before the end of the month or forget it. So I sent them the money and was done.

Good luck with them and pm me if you have any questions that I may be able to help you with.

Quote:

My concern at this point, is if i drag pmts out it will extend the baddies on my CR. I would have to be woried about the fine print on default, like if you miss a date on a payment everything would be voided and be at the full amt again starting it all over again

What to do.....is it a crap shoot.....I dont want to go bk

We settled my husband's one personal account at 50% with Crap one.....the other business account, they refused to settle saying that because it was a better business loan, they would not settle....But that was one of our lowest....so we could pay it.