topic Re: Interesting to those seeking settlement with Cap 1? in Rebuilding Your Credit

Interesting to those seeking settlement with Cap 1?

Wonderin — Sat, 28 Jun 2008 03:53:22 GMT

SchoolbusKid has a separate thread regarding American Collections Enterprise and in searching for whatever poop I could find on them, I found this:

Account Balance Days Since Charge-off
0-90 91-180 181-730 >730
$0-$1,500 70% 70% 50% 50%
$1,501-$3,000 70% 50% 50% 40%
>$3,000 70% 50% 40% 40%

Know what this is? Yep, you guessed it! It's Cap One's guidelines in accepting/offering settlements based on amount owed and time charged off!! This apparently regards in house charge off collection and via CA.

Hopefully, some of you guys can use this!! :)

Re: Interesting to those seeking settlement with Cap 1?

oracles — Sat, 28 Jun 2008 04:11:50 GMT

so if you have a charge off with cap 1 for 3300 including interest (the real balance is 1500) how much will they settle for? its been charged off since 2/2004

Re: Interesting to those seeking settlement with Cap 1?

Wonderin — Sat, 28 Jun 2008 04:30:03 GMT

I THINK that would be about $1324 (give or take a little bit).

My "chart" didn't post very well, and TBH, though I know HTML, I'm not in the right frame of mind to fix it at this moment. I'll fix it tomorrow, though ...

I think the main problem is that it's confusing the way that it's displayed!!! >:(

Re: Interesting to those seeking settlement with Cap 1?

love2golf — Sat, 28 Jun 2008 13:00:28 GMT

Just remember...if you settle and they forgive more than $600.00 you will get a 1099 for tax purposes.

:smileyhappy:

Re: Interesting to those seeking settlement with Cap 1?

oracles — Sat, 28 Jun 2008 15:07:11 GMT

i'm sorry, but what does that mean?

Re: Interesting to those seeking settlement with Cap 1?

teamfico — Sat, 28 Jun 2008 16:01:35 GMT

oracles:

Sometimes Creditors, like Capital One use the form IRS 1099-C for a forgiveness of debt (the balance of which is not paid) when a settlement is reached.

So say you and the creditor agree to 40% of the balance. Then the other 60% is reported to the IRS on form 1099-C (forgiveness of debt) where you will report that as income on your IRS-1040.

Re: Interesting to those seeking settlement with Cap 1?

teamfico — Sat, 28 Jun 2008 16:06:13 GMT

Capital One Settlement Guidelines:
Account Balance              Days Since Charge-off
                                      0-90     91-180     181-730     >730
$0 - $1,500                    70%       70%         50%      50%
$1,501 - $3,000             70%       50%         50%         40%
>$3,000                         70%       50%          40%         40%

Re: Interesting to those seeking settlement with Cap 1?

sidewinder — Sat, 28 Jun 2008 16:36:24 GMT

teamfico wrote:

oracles:

Sometimes Creditors, like Capital One use the form IRS 1099-C for a forgiveness of debt (the balance of which is not paid) when a settlement is reached.

So say you and the creditor agree to 40% of the balance. Then the other 60% is reported to the IRS on form 1099-C (forgiveness of debt) where you will report that as income on your IRS-1040.

Anytime they forgive more than $600 the IRS requires the creditor to file a form 1099C and give you a copy.

Since it is money that you got (either a cash loan or spent using a CC, etc) and you don't have to repay it, you have to include it as income and pay taxes on it.

Re: Interesting to those seeking settlement with Cap 1?

oracles — Sat, 28 Jun 2008 17:11:29 GMT

thanks for the clarification, now is that including interest, because my friend has a balance owed of 1500 but because of interest, they want $3269. Is it off of the balance plus interest or just balance. Also if he settles, in ny they have a 5 year rule that it will come off if paid, but is that the same as settling. thanks

Re: Interesting to those seeking settlement with Cap 1?

BungalowMo — Sat, 28 Jun 2008 20:15:41 GMT

So why won't they remove MY CO??? I paid it up in Dec 05 & my DOFD was 07/03. Here's straight from my EQ report.

If Date of Last Payment was 8/02, wouldn't DOFD be 9/02????

CAPITAL ONE

PO Box 30281
Salt Lake City, UT-841300281

Account Number: XXXX

Current Status: CHARGE-OFF :smileymad:

Account Owner: Individual Account.

High Credit: $520

Type of Account : Revolving

Credit Limit: $0

Date Opened: 2000/07

Balance: $0

Date Reported: 05/2008

Amount Past Due: $0

Date of Last Payment: 08/2002

Actual Payment Amount: $0

Scheduled Payment Amount: $0

Date of Last Activity: N/A

Activity Description: Paid

Charge Off Amount: $0

Date Closed: 12/2003

Type of Loan: Credit Card

Date of First Delinquency: 07/2003

Comments: Paid charge off, Account closed by credit grantor (Oh Really??)

81-Month Payment History

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2008 * * * *

2007 * * * * * * * * * * * *

2006 * * * * * * * * * * * *

2005 * * * * * * * * * * * *

2004 * * * * * * * * * * * *

2003 * * 30 60 * * 30 60 90 120 120 CO

2002 * * * * * * * * * * * *

2001 * * * * *

Re: Interesting to those seeking settlement with Cap 1?

valley_man0505 — Wed, 10 Sep 2008 17:39:09 GMT

Wonderin--do you remember where you found this info? I have a CapOne CO from 2004. The DOLA is sometime in 2003. They keep adding about $50-60 a month to my balance, so I owe more than double what my actual balance was when it was CO'd. I have been debating over and over if I should just hope I slip through the cracks at SOL time, but it sounds like CapOne doesn't typically let many people slip through. I can't take the chance of a judgement since I will buying a house soon, so my only hope may be a settlement.

However, I don't want to wake the sleeping the giant to request a settlement if they won't accept anything I can afford anyway.

Is there anyone out there that has made a settlement with CapOne? If so, I would love to hear how it worked out.

Re: Interesting to those seeking settlement with Cap 1?

BIRDWRITER — Wed, 10 Sep 2008 18:13:39 GMT

Last year, my sister had a Cap One card that had gone into default when her husband died unexpectedly. The debt was nearing SOL, and she hadn't heard a word from Cap One. The original balance was about $700, but it was up over $3500 with penalties and interest. Just before SOL ran out, they slapped her with a notice that they were going for a judgment. She didn't have the money to pay it, but she decided to go to court and ask the judge if she could make arrangements for a small monthly payment, and also wanted to ask how a $700 bill had turned into a $3500 bill, plus another $2000 they were threatening to add for court costs. The local lawyer representing Cap One asked for a continuance because Cap One hadn't sent him any info on the case at all--they apparently assumed that the debtors wouldn't show up in court, so the judge would just automatically grant the judgment.

Sis started to cry because she was afraid, and also because the continuance meant she'd have to lose another day of work. Cap One's lawyer came over to her, and she explained how she was suddenly widowed and broke. He apparently felt sorry for her, because he proceeded to tell her that Cap One always went to court for judgments before SOL, but that they almost never provided the local lawyers with proper documentation in case a debtor actually showed up and asked for proof. He suggested she show up for the next court date, and told her that if his client didn't send all the proper paperwork and a representative, the judge would dismiss the case. That's exactly what happened! The suit was dismissed, and the SOL expired.

She said while she sat in court, 80% of the cases were Cap One, and most of the debtors didn't show up and were slapped with judgments. :smileywink:

Re: Interesting to those seeking settlement with Cap 1?

valley_man0505 — Wed, 10 Sep 2008 18:40:40 GMT

Birdwriter--may I ask what state this occurred in?

Re: Interesting to those seeking settlement with Cap 1?

hoping2rebuild — Wed, 10 Sep 2008 18:53:39 GMT

Birdwriter wrote:

The original balance was about $700, but it was up over $3500 with penalties and interest

I have a somewhat similar story.

My Origional balance with Cap1 was $317

it is now on EX 2458

and on TU 4961

not even showing up on EQ

Wonder why there is a diffrent amount list on each CRA

Re: Interesting to those seeking settlement with Cap 1?

valley_man0505 — Wed, 10 Sep 2008 19:08:05 GMT

hoping2rebuild wrote:
Birdwriter wrote:
The original balance was about $700, but it was up over $3500 with penalties and interest

I have a somewhat similar story.

My Origional balance with Cap1 was $317
it is now on EX 2458
and on TU 4961
not even showing up on EQ

Wonder why there is a diffrent amount list on each CRA

That's odd. My CrapOne is shown with an almost identical balance with all 3 CRA's. Is the "date last reported" the same on each of yours?

FYI...I am up to about $5500 on a card that originally had a $2000 CL and I never went over the limit when the card was active.

Re: Interesting to those seeking settlement with Cap 1?

hoping2rebuild — Wed, 10 Sep 2008 19:12:54 GMT

valley_man0505 wrote:

That's odd. My CrapOne is shown with an almost identical balance with all 3 CRA's. Is the "date last reported" the same on each of yours?

FYI...I am up to about $5500 on a card that originally had a $2000 CL and I never went over the limit when the card was active.

Everything is the exact same on mine except the balance!

I started with a 550.00 CL and never charged over 400 on it and you see

how much they jacked up the intrest and penalties on my CO

Re: Interesting to those seeking settlement with Cap 1?

Laurenlou — Wed, 10 Sep 2008 20:54:29 GMT

Me too! My CL was $2000 and now the balance is $3600. It was around $1700 when I defaulted 2 years ago. The other creditors have been gracious enough to stop adding penalties.

I want to try to settle early next year because this card is killing my UTL, but I also dont' want to wake the giant or reset the DOLA. What to do....?

Re: Interesting to those seeking settlement with Cap 1?

valley_man0505 — Wed, 10 Sep 2008 20:59:59 GMT

hoping2rebuild wrote:
valley_man0505 wrote:
That's odd. My CrapOne is shown with an almost identical balance with all 3 CRA's. Is the "date last reported" the same on each of yours?

FYI...I am up to about $5500 on a card that originally had a $2000 CL and I never went over the limit when the card was active.
Everything is the exact same on mine except the balance!

I started with a 550.00 CL and never charged over 400 on it and you see
how much they jacked up the intrest and penalties on my CO

Like I said, everything is the same on mine for all three bureaus including the balance. The strange thing, though, is that TU is counting the balance towards my utility which is putting me at something like 130% utility. EQ, on the other hand, has all the same information, but IS NOT counting the balance toward my utility. I don't know what EX is doing since they don't show the UTL value on the MyFico report, but I don't think they are counting it towards my UTL. Paying this off should have a pretty good effect on my TU score since it would lower my UTL, but I don't know what it would do to my other scores.

Re: Interesting to those seeking settlement with Cap 1?

BIRDWRITER — Wed, 10 Sep 2008 21:34:49 GMT

Illinois. Not sure if this is standard procedure in other states, but since my sister asked the judge for proof of the debt (extra charges, she wasn't disputing the original $700) and Cap One couldn't provide it, the judge dismissed the entire suit. She even told the judge she knew she owed $700, but didn't understand how it had grown to be such a large amount. (She had moved, and never got any statements for several years.) I'm guessing the judge had the right to assess a judgment for the $700, but sis said the judge seemed annoyed by Cap One adding on all sorts of huge fees and not providing documentation. He said something to the effect that they had blown it, and she didn't have to pay them anything. :smileyhappy:

Re: Interesting to those seeking settlement with Cap 1?

Plight — Sat, 03 Jan 2009 23:36:00 GMT

Has anyone been able to get a PIF using this chart?