What if Capital One buys a bank I have a Charge off With?

[Anonymous]

I owe Cabelas WFB around $1800. It was 30 days late in Jan 2014 and I stopped paying from there (Young and Stupid), therefore I am assuming it will come off in Jan 2021.

I currently have a Capital One QS and I am rebuilding my credit.. TU 667, EQ 667, EX 634.

If Capital One purchases Cabela's bank what will happen? Will they close my current account?

Should I pay the charge off now?  I can't afford to pay the full amount right now and it isn't listed under my "Collections". 

It just states "Charged off as bad debt. Purchased by another lender"

[Anonymous]

CapitalOne seems pretty forgiving.  I know a few people with two COs with actual Cap1 cards who now have big CLs on new cards.

I had a CITI store branded card that wasn't late ever but changed to Chase and CO'd and my CITI trade line still shows on my CR as paid on time but the Chase card is gone and I'm blacklisted with Chase to this day.  Whenever I visit my Chase banker it shows on my main customer screen in big red letters, lol.  So Chase has long memories but Cap1 seems to have short ones.

[Anonymous]

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@Anonymous wrote:

CapitalOne seems pretty forgiving.  I know a few people with two COs with actual Cap1 cards who now have big CLs on new cards.

I had a CITI store branded card that wasn't late ever but changed to Chase and CO'd and my CITI trade line still shows on my CR as paid on time but the Chase card is gone and I'm blacklisted with Chase to this day.  Whenever I visit my Chase banker it shows on my main customer screen in big red letters, lol.  So Chase has long memories but Cap1 seems to have short ones.

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I just wasn't sure if Capital One will close my account if they purchase Cabelas.

I wonder if they will pursue that $1800 after the merge is completed.

[thummel]

If it's already been sold off to another lender I don't think capital one can collect on it. If cabelas WFB still owns the debt and capital one buys it, I would assume they should be able to collect on it because it's technically a debt you owe capital one now. It could give them a reason to mess with your current accounts but you will just have to wait and see basically what will happen. Nobody can tell you for sure.

[TiggerDat]

It's CapOne, so don't worry.  They classify each card individually when you open it.  You can open a QS1 and it will always be classified as a subprime account.  They might have limit increases for it when they are generous, then get nothing when they aren't.  Even if you still have that card and apply for another and you get a $20,000 Visa Signature and that card will be treated completely differently than the other.  

CapOne has a short memory.and approves people they have charged off not that long ago.  I think you have to wait 10 seconds out of bankruptcy before they will approve you again.

[RobertEG]

If they have purchased accounts from another, they now own the debt.

Being delinquent for over three years and having been charged-off, the account is closed.  Creditors dont leave seriously delinquent accounts that have been charged-off open to further consumer charges.  They have just not properly updated to show closed.  If you were to attempt to use the card, it would almost assuredly be rejected.

Status as open is a minor issue that is readily correctible should you bring it to their attention.

My concern would be that once they review their newly-acquired debts, they may choose to either initiate civil action if still within SOL, or refer for collection of the deliquent debt.  You thus may see the addtion of either a judgment or a collection to your credit report.

That may be more significant than any impact a delinquent debt may have on your existing, unrelated account with them.

[Anonymous]

Capital One doesn't seem to care about much.  I had a 7700 charge-off with Capital One on my credit reports and had a 527 FICO score and they approved me for Capital One Platimun and now they say I am pre-qualified for Quicksilver with my score in the 600's. 

[TiggerDat]

I think first you have to understand that if the account was sold or charged off, then when CapOne buys a portfolio it is very unlikely to be in that portfolio.  They usually only buy the active accounts.  This might include past due accounts which have not been sold or charged off.  The history of what you did with that company may or may not be included in the transfer of accounts.  However, CapOne charges off more often than they pursue legal action.  It has to do with accounting practices they have and how accounting rules work.  If they charge it off, then they can claim it as a business expense or reduce thier income.  With all the fees and interest they earn they can still make a profit.  If they go to court to get the money it might not be as good as if they simply don't incure the costs of pursuing the debt from thier business model.