Capital One debt

If the account is already being charged-off, then possibly it has now been slipped to a third party collection agency. Have you heard form any CA regarding this collection yet? How old is the debt?

If its a CA that's taking care about the account now, you should ask them to validate your debt properly in writing by sending a certified DV letter. The letter will explain why they're asking 3k for a debt of 1.5k.

If you pay-off the account in full, it'll definitely cast a positive impact in your report. However, if you settle the account for less than what you owe, it'll show up as 'paid as agreed', what is still better than the 'charged-off' status.

Paying off a charged-off account don't remove it from the credit report rather "paid-charge-off" will be written in your CR.

Charge-off generally remains in a CR for 7 years + 6 months from the first non-payment date.

It is highly recommended that you should try to avoid charge off because it will hamper your prospects of getting loans in the future especially mortgage ones. So, you should always take care that it doesn't appear in your credit report.

Dear Guest,

At present, you may follow the following steps: -

1. You can contact your original creditor and ask whether information on your account can still be accessed. Also try to know the collection agency name to which your account has been handed-over to. If your luck is good, then you can still pay the creditor directly.

2. After finding out your charged-off account????????s debt, you should convey your desire to pay the debt either to the original creditor or collector. Now, tell how much you can pay them. Please always remember that you shouldn't offer them such a sum which you cannot afford.

3. After paying off the charged-off account in full, ask the creditor to remove the same marking from your report. They will generally mark it as Paid-charge-off. You can also ask them to update the account as Paid-as-Agreed. Please make it sure to collect a written confirmation of removing your debt from credit report before paying-off your debt.
4. Please check your credit report from all 3 big credit bureaus, namely, Transunion, Equifax and Experian, whether your account has been updated.

It can also happen that your creditor fails to provide account information to you, as mentioned in the first step. In such a case you can write a statement (max 100 words) to the 3 big ones stating that you had contacted the concerned creditor for paying-off your debt but the creditor failed to provide you with the required information.

Then check your credit report again. If you see certain anomalies then you can dispute them with the credit bureau.

Regards,

Phoenix

the creditor will not mark the account paid as agreed .the account was never paid as agreed, it was defaulted and then charged off.If paid , it will be marked paid. A creditor can not provide inaccurate reports to the credit bureau, that is a violation.

Under Fcra there is no duty to report at all.Most creditors will not change their reporting except in certain settlement conditions.These conditions are usually hammered out in a contract between parties.[/right]

At the very least they must supply accurate information.

Actually no one has contacted me about this. I only see the changes in the account on my credit report, but I don't get letters or calls from Cap One or any CA collecting for Cap One

Dear Guest,

Like many of us, whose account has been charged off, you probably may also be thinking of contacting your former creditor, Capital One, and telling them that you want to pay-off their debt. Now, if you think that offering such a thing to your former creditor will solve everything is fallacious.

In such a situation, what may happen?
By knocking your creditor after such a long time and offering them repayment scheme will only give your creditor the chance to report your account delinquent all over again. This will restart the 7 year period of reporting in your CR all over again.

Now, suppose that you pay-off the amount to your creditor. But the negative marking will not come off your credit report immediately but only after 7 years from the date of paying off.

What other option do you have in such a situation?
You have to be aggressive in such a case. First of all, don't contact your creditor but dispute the negative information, already marked in your CR. If you become unsuccessful in removing the same from your CR then only contact your former creditor and start negotiating.

Thus, the only way you can remove the negative aspect from your CR is to negotiate with the creditor from a position of strength. Many may not approve with me in this, but this is the real and only way to remove the negative aspect from your credit report.

During the process of negotiation, please make it sure that you are not talking to any programmed clerk through 1-800 or any other person who doesn't have the authority to mark your CR as charged-as-agreed. In such a case you should talk to department heads or higher who don't generally talk garbage and will straight way tell you whether they are ready to negotiate with you.

N.B. Never consider a negotiation about settling a debt as immoral or unethical. I personally consider a debt negotiation as a war and in a war everything is fair and nothing is immoral.

Regards,

Phoenix

Phoenix,I am sorry but you are wrong in your information.Sol for credit reporting is from the date of first major delinquency & absolutely nothing can reset it without a Fdic rule 5000 plan in place. Paying a old debt does not reset sol for reporting,it may reset sol for civil action.