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Cap1 Tactics

Date: Wed, 07/14/2010 - 14:59

Submitted by anonymous
on Wed, 07/14/2010 - 14:59

Posts: 202330 Credits: [Donate]

Total Replies: 4


I had a monthly payment set up through my bank to capital one on a 30K balance. All balance transfers. My payment was $405 but my minimum payment was only 390. I thought i was good for the time being. However, instead of my monthly minimum going down - it went up to over $405, to about $415. I was unaware of this and after two months of what they cited as "failure to make minimum payments," they gave me two options 1) close the card at 17.7% or default to the penalty rate of 29.9%.
This occurred in early 2009. After several months of paying $500 interest and $330 principal i was tapped out. I sent CAP1 notice that i have nothing else to give- especially if anything less than the full-minimum had the same penalities as no payment at all. I have not heard back. So i stopped the $300 "good faith" payments i was making as they continued to penalize me.
I should point out i am worth 0$ and have no assests. My condo depreciated by 40K, i have 80,000 in student loans (down from 156,000). Even if they offered a deal I could not pay them anything.
On the other hand AMEX and CHASE were very accomodating. They asked for a reasonable amount per month 200-300 and are not charging me interest.
If capital one is going to pile-drive my credit, why shouldnt i re-structure under bankruptcy?


I think, am not sure, but think that you must have been in default prior to them changing the arbitration clause in the cardholder agreement. I think they changed it in January. So if you defaulted prior to January I think you can choose arbitration and from what others have said they then just go away since the cost to arbitrate is about $5000 and they have to pay for it.

You only use the arbitration clause if you are being sued. Once sued then you send a certified letter to cap one and the attorney stating you are electing arbitration.


lrhall41

Submitted by Debt Free to Be on Fri, 07/16/2010 - 08:24

( Posts: 412 | Credits: )