Credit Card collection accounts
Date: Thu, 06/14/2012 - 12:05
Hello. This is my first time on this website and I find it to be very organized, informative, and the individuals who respond are very helpful and nonjudgmental.
My situation is that I defaulted on two credit cards in 2009 while I was in school. A Washington Mutual (Chase) card and a Capitol One card. The Chase card had a $2500 balance and the Capitol One card had a $1335balance. I had to live on these cards just to survive and I was working intermittently, mostly part time seasonal jobs. Needlessly to say I also had to take out student loans to pay for tuition, books, and living expenses.
The good news is that I did graduate in May 2011. I am just now getting full time, long term employment and getting to the point where I can actually focus on some sort of debt repayment strategy. Fortunately I am on an income based repayment plan for my student loans and have taken advantage on the small perks offered by loan department such as loan consolidation and payment drafts to lower my long term interest rate.
Both of the cards have since gone to collection agencies. I received an offer letter from a company called ARS who has the Capitol One debt. They offered to settle the $1335 debt for $801.59.
Does anyone have experience in dealing with this company? In the letter they state once I agree on the agreed settlement amount, Capitol One will consider the debt as settled. I understand that although the debt has been settled, the account will appear as "Paid as agreed" which I understand will still reflect negatively on your credit report. I've never agreed to settle a debt with a collection agency and I'm just concerned regarding the validity of the offer and the debt actually being settled with the original creditor (Capitol One).
If anyone has any past experience in dealing with ARS I would greatly appreciate any feedback.
Sincere thanks,
Lee
My situation is that I defaulted on two credit cards in 2009 while I was in school. A Washington Mutual (Chase) card and a Capitol One card. The Chase card had a $2500 balance and the Capitol One card had a $1335balance. I had to live on these cards just to survive and I was working intermittently, mostly part time seasonal jobs. Needlessly to say I also had to take out student loans to pay for tuition, books, and living expenses.
The good news is that I did graduate in May 2011. I am just now getting full time, long term employment and getting to the point where I can actually focus on some sort of debt repayment strategy. Fortunately I am on an income based repayment plan for my student loans and have taken advantage on the small perks offered by loan department such as loan consolidation and payment drafts to lower my long term interest rate.
Both of the cards have since gone to collection agencies. I received an offer letter from a company called ARS who has the Capitol One debt. They offered to settle the $1335 debt for $801.59.
Does anyone have experience in dealing with this company? In the letter they state once I agree on the agreed settlement amount, Capitol One will consider the debt as settled. I understand that although the debt has been settled, the account will appear as "Paid as agreed" which I understand will still reflect negatively on your credit report. I've never agreed to settle a debt with a collection agency and I'm just concerned regarding the validity of the offer and the debt actually being settled with the original creditor (Capitol One).
If anyone has any past experience in dealing with ARS I would greatly appreciate any feedback.
Sincere thanks,
Lee
Simply call Cap One to verify placement. It pretty easy. Your b
Simply call Cap One to verify placement. It pretty easy. Your balance is not high and the settlement is reasonable. Keep in mind Cap One does actively sue, even at a balance your size. A judgment would hurt you even more than the collection account listing.
