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Cap One charge off account with balance - need guidance

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Anonymous
Not applicable

Cap One charge off account with balance - need guidance

I'm still trying to prioritize my credit repair efforts, but with help from this forum, I understand that addressing my CO accounts that show balances is a good place to start.

 

I'll start with this one.

 

Capital One

Balance: $2,917 as of June 2015

Original Credit Limit: $3,500

DOFD: 7/2011  (SOL in my state is 4 years, which means it's coming up soon, yes?)

Scheduled to fall off: Sept 2017

 

Additional info:

On my FICO 3-Report, it says the Condition is Open and Status as Charge-off, but in the remarks says closed by creditor. ???

Also on my FICO 3-Report, TU shows no lates, but EX and EP show 32 lates. 

On my reports directly from EX and TU, say it is Closed and charged off with same balance. Credit Karma also shows this as Closed and charged off with same balance.    

 

There is are no collections for this account. 

 

So what are my options to deal with this? As the SOL is right about now, I want to be prepaired as to what to expect. 

 

Thanks for your help!

Message 1 of 7
6 REPLIES 6
RobertEG
Legendary Contributor

Re: Cap One charge off account with balance - need guidance

First, make sure of the date that the SOL runs from in addition to its period.

While the DOFD is also the begin date for running of SOL in most states, some are set based on date of last payment, so carefully check your SOL code for details.

 

As for the asserted inaccuracies, yes, you can always dispute inaccuracies in reporring, but the outcome is usually not the required deletion of anything.

The creditor always has the option to either verify the accuracy as reported or to update their repoftng so as to overcome any inaccuracy.

Deletion only applies to the disputed information,and only if it is not either verified or corrected.

 

Inconsistency in reporting between differenct CRAs is not basis for asserting inaccuracy.  A furnisher is only required to not knowingly report inaccurate information,  They are not required to report all accurate information, or to report the same information to each CRA.  They can omit reporting to aone or more.

In the case of the reporting of both monthly delinquencies and a charge-off, I would urge particular care before disputing.

A dispute could well result in the addition of each and every delinquency ot each CRA,

 

Many creditors either refer delinquent debt to a debt collector or sell the debt after a CO, so you may see a collection reporting.

Message 2 of 7
Anonymous
Not applicable

Re: Cap One charge off account with balance - need guidance

Thanks for the info!

 

I checked SOL for California and it says 4 years. I can't find anything more specific about the DOFD or last payment.

For this account, the date of last payment is Dec 2010. 

 

Regarding the inconsistencies in reporting, I agree, I don't really want to wake a sleeping giant. 

 

At this point, I guess I'll just wait it out and see if gets sold to a CA.  Is there a limit to how long a OC has to sell it to a CA?

If it does get sold to a CA, what is my best option? Negotiate a PFD?

If it gets sold to a CA and it is past the SOL, they can't make a judgment against me, correct?

 

Thanks for your help! 

Message 3 of 7
Anonymous
Not applicable

Re: Cap One charge off account with balance - need guidance


@Anonymous wrote:

Thanks for the info!

 

I checked SOL for California and it says 4 years. I can't find anything more specific about the DOFD or last payment.

For this account, the date of last payment is Dec 2010. 

 

Regarding the inconsistencies in reporting, I agree, I don't really want to wake a sleeping giant. 

 

At this point, I guess I'll just wait it out and see if gets sold to a CA.  Is there a limit to how long a OC has to sell it to a CA?

If it does get sold to a CA, what is my best option? Negotiate a PFD?

If it gets sold to a CA and it is past the SOL, they can't make a judgment against me, correct?

 

Thanks for your help! 


If the last payment was made Dec 2010 and the SOL in your state is 4 years, then you should be in the clear for being sued. You should really double check all of that info before you proceed with anything. It really surprises me that they haven't yet sold it to a debt collector. As to your question on how long an OC has to sell it to a debt collector, the answer is the debt can be sold forever. Nothing cancels the debt, only legal means to collect it and credit reporting time periods have time limits.

 

If it is outside of the SOL, then a judgement cannot be obtained as long as you go to court using the SOL as your defense if anyone ever tried to sue you for the debt (which no one will likely do so, because of the SOL expiration) but be aware you do have to go to court if ever sued, because if you don't they will get the judgement against you.

 

Right now you are gambling, not with being sued but with your credit score. Odds seem to be in your favor so far, but that's not to say it couldn't change. As far as your credit is concerned you have 2 options. One option is to do nothing and hope that a collection company does not hit your credit reports (so far so good). Your second option (only if you have the money to pay in full immediately) is to contact the creditor and pay the account to prevent a collections from hitting your reports. The creditor may tell you that the debt has already went to a debt collector and if that is the case you would want to contact them and get an agreement to pay it in return for them not reporting it. Your decision will probably be based on if you have the extra money to pay it now and if it is really going to hurt you to get a collection account added to your report. Just be aware that it is much easier to prevent a collection from hitting your reports than trying to get one removed. Most debt collectors do not want to do pay for deletes.

Message 4 of 7
Anonymous
Not applicable

Re: Cap One charge off account with balance - need guidance

Thank you so much for your info. That's a big relief to know that the SOL is in my favor. 

 

As for now, I think I'll go with option one and try to ride it out until I can come up with the money to PIF.

 

If I can come up with the cash, do you think I have any room for negotiating a reduced pay-off or a PFD?

Message 5 of 7
Anonymous
Not applicable

Re: Cap One charge off account with balance - need guidance

Bumping this back up. Smiley Wink

 

Does anyone have any guidance or input as to dealing with Capital One on a an account that is charged off but still showing a balance?

 

 

Do you think they would accept a reduced payment, like 20%? 

 

Also, is there somewhere on my Fico report which shows what my total utilization is? 

 

Thanks

Message 6 of 7
gdale6
Moderator Emeritus

Re: Cap One charge off account with balance - need guidance

You are going to have an uphill battle with Cap-1 on a PFD, they usually wont do it unless its in the last year of it being able to be reported but it doesnt mean you dont try especially if its updating monthly. Typically when asking a creditor to PFD you offer 100%, since its past SOL you might be able to offer 70%. Good luck with what you decide to do

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Q-amp-A-Examples-and-PFD-Success-Stories/...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/td-p/4519

Message 7 of 7
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