How to pay off Capital One without doing yourself in for another 7 years?

[Anonymous]

I have some funds and I want to pay off my two ridiculous Cap One credit cards that had initial limits of $500. I'm sure I don't need to explain how these now have interest accrued balances of almost $2000 each. They are due to fall off my reports in 1.25 and 2 years. I have to pay these. Even though they are reporting as Charged Off, the utilization is still used in computing my credit score. My TU report just stated my utilization is 270% and it's a huge factor in my score. I do have other credit cards and they are all under 5% utilization. I can't sit here and wait for these to fall of - I have to pay them or my score will be in the toilet until they fall off. How do I do this? I can't afford another 7 years to start. I did receive an offer to settle from Northland for one of the accounts. They are asking for a set amount of money to be paid over a period of 3 payments. Why not one payment? I'm concerned, and maybe paranoid, that this is a way to restart the date of last activity. Am I wrong? Should I take the settlement for this one and work on the other? How do I work on the other? How do I contact Cap One for a payoff without them starting the 7 years all over again? Honestly, I want to pay these off, but at the same time I can't afford to have Date of Last Activities started all over again. Any advice?

[Anonymous]

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17466

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=2689

maybe those will help.

Message Edited by sidewinder on 02-22-2008 04:49 PM

[Anonymous]

Cap One is still reporting. They are updating it monthly and continue to add late fees. Because of this, I'm going to assume it hasn't been "sold" to a collection agency yet. I also noticed an inquiry from a couple of weeks ago from them on my report. Being the SOL on one of them expires in 3 months, I'm guessing they may be getting ready to sue me. If Cap One "sold" one of the debts to Northland, how can they still report and update as currently late?

I read the link about SOL and Date of Last Activity. Now I'm even more concerned. Am I right in reading that the only way to really protect myself is to pay it off in full in one lump payment? Or it not, let's say I take the settlement I am offered. I could be sued for the remaining amount anytime between now and another 7 years? Even though Northland's settlement offer states it would be considered payment in full and the debt/account would be closed, satisfied and a release letter issued?

Message Edited by mxnuy1 on 02-22-2008 04:56 PM

[Anonymous]

The reason they offer it in 3 payments is hoping you will miss a payment, have reset the SOL and then they can sue you-

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mxnuy1 wrote:
I have some funds and I want to pay off my two ridiculous Cap One credit cards that had initial limits of $500. I'm sure I don't need to explain how these now have interest accrued balances of almost $2000 each. They are due to fall off my reports in 1.25 and 2 years. I have to pay these. Even though they are reporting as Charged Off, the utilization is still used in computing my credit score. My TU report just stated my utilization is 270% and it's a huge factor in my score. I do have other credit cards and they are all under 5% utilization. I can't sit here and wait for these to fall of - I have to pay them or my score will be in the toilet until they fall off. How do I do this? I can't afford another 7 years to start. I did receive an offer to settle from Northland for one of the accounts. They are asking for a set amount of money to be paid over a period of 3 payments. Why not one payment? I'm concerned, and maybe paranoid, that this is a way to restart the date of last activity. Am I wrong? Should I take the settlement for this one and work on the other? How do I work on the other? How do I contact Cap One for a payoff without them starting the 7 years all over again? Honestly, I want to pay these off, but at the same time I can't afford to have Date of Last Activities started all over again. Any advice?

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[Anonymous]

So I've gone ahead and agreed to settle the first account through Northland - 3 payments with a grand total of $826 for a $1500 balance. I'm going to make all three payments within the next 2 weeks, instead of once a month.

So I should be safe on this one?

How would I go about negotiating a settlement on the other one that Cap One has not sent to a collection agency yet? I guess that's the one that worries me. If I agree to a set amount of payments with Cap One themselves, won't those be considered payments that would restart the Date of Last Activity?

[Anonymous]

there is no SOL on a debt that is paid in full-

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mxnuy1 wrote:
So I've gone ahead and agreed to settle the first account through Northland - 3 payments with a grand total of $826 for a $1500 balance. I'm going to make all three payments within the next 2 weeks, instead of once a month.

So I should be safe on this one?

How would I go about negotiating a settlement on the other one that Cap One has not sent to a collection agency yet? I guess that's the one that worries me. If I agree to a set amount of payments with Cap One themselves, won't those be considered payments that would restart the Date of Last Activity?

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[Anonymous]

Ok, I see where I'm getting confused. I'm thinking that I would like to pay off this other Cap One account (the one where I will have to contact Cap One directly) and have it drop off my credit when it is scheduled to do so - in 2 years. I don't want it to start over another 7 year period by me contacting Cap One to settle by sending them payments and then having a settled account sitting on my credit for 7 more years. Because wouldn't they consider any payment made directly to them a payment made to my account that would restart the date of last activity?

Would I be better off waiting until I have the entire amount ready to pay them in one lump sum for this one?

Message Edited by mxnuy1 on 02-22-2008 07:34 PM

[Anonymous]

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mxnuy1 wrote:
Ok, I see where I'm getting confused. I'm thinking that I would like to pay off this other Cap One account (the one where I will have to contact Cap One directly) and have it drop off my credit when it is scheduled to do so - in 2 years. I don't want it to start over another 7 year period by me contacting Cap One to settle by sending them payments and then having a settled account sitting on my credit for 7 more years. Because wouldn't they consider any payment made directly to them a payment made to my account that would restart the date of last activity?

Would I be better off waiting until I have the entire amount ready to pay them in one lump sum for this one?

Message Edited by mxnuy1 on 02-22-2008 07:34 PM

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If SOL runs out in 3 months, I'd wait until AFTER SOL runs out to contact them and work something out. Reason I would do this, b/c they may not realize SOL is about to run out. If you call, I'm sure they will notice.

It will remain for 7/7.5 years from DOFD.

SOL runs from DOLA.

I don't "THINK" a payment resets DOFD. It would still drop when it should, even if paid.

But wait until someone else backs up this information.......b/c I still get confused on some of it.

[Anonymous]

How about a PFD?   

[Anonymous]

"payment in full and the debt/account would be closed, satisfied and a release letter issued?"
I received this type of offer as well and was wondering what this means? Do they change the status? Do they update the DOLA and thus making it look like it was just charged off...I am wanting to make sure this is finished as best as possible (of course if they do not take the PFD letter)...