cancel
Showing results for 
Search instead for 
Did you mean: 

Advice on a CO

tag
JPeanut503
Frequent Contributor

Advice on a CO

I am looking for a little advice on what my best bet is in handling this Capital One Charge Off.  I know the best thing to do is to pay off the debt; but I cannot afford to pay the $830 in full right now.  I am not sure if they will agree to a lesser amount or if they would take payments?  It is still showing up from Capital One, so that’s good it hasn’t gone to a CA (yet).  Below is how it is showing up on 2 of my reports, I haven’t pulled the 3rd yet.  Any advice would be appreciated. 

 

EX:

Balance: $830

DOFD: 7/2012

Status: Charge Off

Limit: $500

Comments: Account was in dispute-now resolved-reported by subscriber

 

TU:

Balance: $830

It looks like the time where I defaulted and never recovered was 7/2012

Item won’t be removed until 6/2019 (OUCH!)


Beginning myfico score watch 608 (4/4/14)
EQ 652 (9/17/14) myfico
TU 641 (9/17/14) myfico
EX 671 (9/17/14) myfico
**Goal Score: 700 across the board
Message 1 of 5
4 REPLIES 4
Whitneyy
Valued Contributor

Re: Advice on a CO

Capital One did a settlement for me, and I paid every week directly out of my checking account and then closed the account when it was done. 

 

BUT my account wasn't charged off, just past due. 


I would say, try it. 

GOAL - 700 FICO across the board!
Message 2 of 5
RobertEG
Legendary Contributor

Re: Advice on a CO

The fact that they have charged-off the debt does not relieva any responsibility by the consumer for the entire debt, and thus it remains due in full just as if it had not been charged-off.  Yes, you can negotiate any terms the same as if it had not been charged-off.

 

However, taking a CO indicates they are taking measures to attempt to recoup some of the debt that they dont expect to be paid.

The first step is the CO, which permits them a tax writeoff with IRS.

A normal second step is then to sell the bad debt at a discount to a debt collector, thus recouping a bit more.

Once they do that, you can no longer pay them, and the debt collector can add a collection to your CR.

 

I would do my best to avoid their sale of the debt.  Sale of a bad debt usually recoups only pennies on the dollar, so if you offer a payment plan, that might be more attractive than sale.

Message 3 of 5
JPeanut503
Frequent Contributor

Re: Advice on a CO

Well I bit thr bullet today and called Capital One and set up a payment arrangement.  I think they were thrilled to have me offer something.  I said $100/mo and she didn't even flinch.  I asked about the CO and if that would stay on my CR and she said once the account was paid in full the account would be updated....so basically it will show "paid in full" but still a CO (I am assuming).  But I guess that's good because they were updating as recently as last month.

Now my question is, will that help my score at all - now that I am making payments??


Beginning myfico score watch 608 (4/4/14)
EQ 652 (9/17/14) myfico
TU 641 (9/17/14) myfico
EX 671 (9/17/14) myfico
**Goal Score: 700 across the board
Message 4 of 5
DaveSignal
Valued Contributor

Re: Advice on a CO

yes, because right now the balance is hurting your total utilization, which is a big factor in FICO scoring.

 

At least you saved the account from going to collection.  After you are finished with your payment plan, you could try goodwill, but you might just have to let it age while trying to build a history with other accounts.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.