Advice on Cap1 account, please.

Jaguars28fan · ‎01-24-2013

I've been repairing for a year or so now and I'm down to my last baddie. It should come off next year but I'm looking for a mortgage this year. It's a cap1 charge off of 5303. I've tried to argue with them the balance should not be that b/c they sent me a 1099-c for 2600 (they said theycould only send a 1099-c for charge I put on and not their fees). I don't get how they can get you to count the "cancelled debt" as income but still show it as a balance on the credit report... All lenders I'vecalled besides USDA Direct says it has to be paid off. I'm just worred I'll wait till next year until they have funding.

Anyways, I'm the point where I think settling may be best right now. My scores hover around 625-650 for EQ fico. I believe if I settle with them, it could increase my score since it's using up my util%. My question is, how much can I settle for? anyone settle for 30% or less? does anyone have a cap1 email contact that could help?

mnosal9 · ‎01-24-2013

With capital one I try to settle for 50% or more of what the debt owed is. I have a capital one C/O from 2009 and settled for half.

Starting: 6/2012 : EX: 485(FAKO) EQ: 490(FICO) Trans: 482(FAKO)
Current : 4/2014: EX: 650(FICO) EQ: 664 (FICO) Trans: 681 (FICO)

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guiness56 · ‎01-24-2013

@Jaguars28fan wrote:
I've been repairing for a year or so now and I'm down to my last baddie. It should come off next year but I'm looking for a mortgage this year. It's a cap1 charge off of 5303. I've tried to argue with them the balance should not be that b/c they sent me a 1099-c for 2600 (they said theycould only send a 1099-c for charge I put on and not their fees). I don't get how they can get you to count the "cancelled debt" as income but still show it as a balance on the credit report... All lenders I'vecalled besides USDA Direct says it has to be paid off. I'm just worred I'll wait till next year until they have funding.

Anyways, I'm the point where I think settling may be best right now. My scores hover around 625-650 for EQ fico. I believe if I settle with them, it could increase my score since it's using up my util%. My question is, how much can I settle for? anyone settle for 30% or less? does anyone have a cap1 email contact that could help?

They can't. Once they send you a 1099-C for the forgiven debt, they can no longer show that in their balance nor try to collect on it.

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Jaguars28fan · ‎01-24-2013

that's what i thought, but I can't find any where that it says they can't. it doesn't make any sense to me how they can file it and still report it. I talked to two reps yesterday for a hour and both kept telling me to talk to my tax rep.

I had to file the 1099-c as my income. If it is my income, then the money no longer should be listed on my credit report.

Jaguars28fan · ‎01-24-2013

well... looks like you may be right. After talking to two reps yesterday for hours arguing with them... I decided to give in today and just settle. Well I talked to a rep and said i just wanted to settle and get it over with. I'm on hold for like 10 min. She comes back and says I'm sorry we aren't collecting on this account anymore and we're removin ourselves from your report. Of course... I say well can I get a letter saying that or anything... she says no. So I get her name and number instead.

guiness56 · ‎01-24-2013

They are doing the right thing. It is illegal for them to issue a 1099-C and continue to try to collect.

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madmann26 · ‎01-24-2013

To answer the other part of your question,

The CO balance is affecting your utilization. Once that balance reports as $0, you utilization should come down.

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huntsmama · ‎02-17-2013

I'm so glad I stumbled on this because I am having the same issue, although I have not contacted Capital one directly yet cause I'm scared of them. Can I ask for the name and number of the rep you spoke with via PM? I'd like to try your strategy to get them to report the $0 balance as well.

Thanks in advance!