MRS Assoc-Cap 1 settlement question

The first step is to validate the debt by sending the collection agency a debt validation letter. Once the debt has been validated, you can pay off the settlement amount. Check with the CRA once the account has been settled. It should reflect the settlement.

If they do not validate, what should I do next? I would love to get this resolved as I know Capital One likes to sue. Should I contact Capital One directly and try to settle if I don't receive validation?

Frankly, I would skip the validation at this point.

Call CapOne and ask who has your account. Let them know you received a settlement offer. You have the offer in writing already, so if you like it, can afford it and CapOne verifies MRS is handling the account, take it!

I agree with Ohiogal.

I settled a Cap 1 business credit card with Cap 1, even though Allied Interstate was the CA on the acct, I dealt with a Cap 1 supervisor via a call with Allied.

From what I have read and myself included, Cap 1 will report "settled with an outstanding balance". From my conversation with Cap1, they will not pusue the remaining balance.

When was the last time you paid on this accoutnt?

I also agree with Ohiogal...DVing an assigned Cap One account can result in the account being pulled from the CA and being sent right to an attorney for litigation. Verify yourself with cap one.

ioalot said:
"Cap 1 will report 'settled with an outstanding balance'"

Such notation would be patently false and would need to be challenged. No balance can be outstanding after a properly executed settlement. "Outstanding balance" and "settlement" are mutually exclusive. If the balance is still outstanding then there was nothing settled.

Options, I agree, I figure once I have all these boulders off my chest I can deal with that via a law suit. It seems to be common practice with them.

If you're prepared to later fight them for their reporting, then your strategy is near bullet-proof.

"Settled with an outstanding balance" was for a business card, dont know it it matters.

I just spoke to Cap 1 about settlement on a personal card and the csr said the settlement would be listed as "settled in full".

Ill have to wait for it in writing to see what this one says and Ill report back.

Hi IO,

Please reach out to me through PM if you later run into issues with the reporting showing the forgiven portion as a remaining unpaid balance after settlement completed.

I have worked with MRS for several years and they have been fairly easy to work with however Capital One accounts can be a little tricky as they normally will only settle at 50% of the original balance when dealing with the directly. Since Capital One has started allowing 3rd party collection firms to assist in resolving their debts they will accept 40% - 45% depending on your hardship. The most important thing is that if MRS agrees to a term settlement is to get the documents in writing before providing any bank info to their office. Normally it will be reported as settled, settled for a lesser amount or in some cases settled in full.