Capital One Charge Off While Making Payments?

[StaceJ]

Hi all! I'm new to the forum and I'm hoping someone can help me to understand the situation I'm in...

I have a Cap1 account that was recently charged off (in August). I never missed a payment until November of 2012 when a part time job I was working became even more part time and I could no longer pay. I called and was placed on a hardship program that would defer late fees in an effort to help me catch up. 

I continued to struggle financially but tried to make a payment every few months so that they at least knew I was trying. I made payments in Dec 2012, Feb, May and June all while in their hardship program. When I tried to login to my account in August to make a payment, I found out my account was "limited" so I called their solutions line and found out the account was charged off. 

What should I do now? I've asked for a letter stating the status of my account but the letter they've provided does not mention the charge off--it just says the account is past due. Should that matter?

I want to make payment arrangements for the full amount (they've offered a settlement but I'd prefer to pay it all off) but would love to get some advice before doing anything. Thanks!

[guiness56]

Welcome to the forums.

Did you make only the minimum payments while you were making payments?  Was the account brought current from your first missed payment in Dec?

Technically, they could CO the account even while in a hardship program because you did miss payments.

I would call them and make arrangements to PIF and not settle. 

[StaceJ]

Hi Guiness! Thank you for the welcome and reply!

The account was never brought current-- guess that explains the charge off 

Am I correct to assume that if I set up monthly payments with Cap1, they cannot sell the debt to a third party? Should I ask for the terms of the payment arraignment in writing before agreeing and making my first payment?

Sorry for all the questions. I just want to make sure I'm doing this right and not putting myself into any situations that may cause further harm to my credit.

[guiness56]

You can ask them for the terms in writing but they may not be willing to do that.

Once it is CO'd they can sell it if they choose to.  They can even sue if they choose to while in a payment agreement.  Which looks bad on them but they can.

I would do whatever I could to get this paid off as soon as possible.  And try not to settle if at all possible, unless you can get them to give you something in writing stating the settlement satisfies the account in full and you are no longer obligated to them.  They are bad about reporting the remainder after a settlement which isn't supposed to happen.