Capital One - What Would You Do?

[amh783]

I've been working diligently to repair my credit and my boyfriend's credit. After successfully raising his score 60 points in 3 months (Thanks to these boards!), I'm ready to see mine move more than a point or two.

I've got one last unpaid OC on my account. Guess who? Yep, Crap1.

I'm petrified of how to go about getting this account off my report.

Here are the facts:

Capital One CC, opened in 2001. $2,000 balance. 

1/2005 - DOFD. I ran into financial trouble and stopped paying this card. That's the only excuse I've got. It has been reporting KD since 6/2006. Every. Single. Month.

The current blance is $4,893. Reporting as a charge off.

It's my oldest account, by 3 years.

What to do? Wait until it falls off? Sounds like Crap1 will wait and then try to sue once it gets closer to the SOL.

Try to work out a payment plan? Offer some sort of PFD (I can't PIF with one lump sum - maybe 5-10 payments?) 

In an ideal world, I'd think I want to stirke some sort of deal where i re-open the account and pay off the balance, and get the 5 years of KD's off my record?

Probably not possible right??

Thanks in advance for any help!

[jdxprs1]

thats going to fall off in jan of 2012. sol has already expired. no brainer, leave it alone.

[climbinghigher]

AMH, what state are you in? The sol ranges from 3 to 10 years by state. Like JDXPR1 said, it will fall off of your cr Jan. 2011.

[MarineVietVet]

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@jdxprs1 wrote:

thats going to fall off in jan of 2012. sol has already expired. no brainer, leave it alone.

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We can't know that until we know what state the OP lives in.

SOL is not the same as CRTP (Credit Reporting Time Period).

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[llecs]

In the meanwhile, OP, save up and if you do pay, pay in a lump. Save a payment each month and if forced to pay in a few months (assuming SOL is an issue), then you can do the one-payment plan. If not needing to pay then because SOL expired, then you hold the cards and settle fairly cheaply.

[amh783]

Thanks guys - I'm in MA. I think it's 7 years. If I made my last payment in 12/05 and it reports DOFD in 1/06 and first major delinquency six months later, when does SOL clock start?
My gut reaction is to wait it out as well. Trying to a buy a home in the next few months, but think I'm stuck waiting this out?

[RobertEG]

I agree,  You cant make an educated decision on how to deal with the account until you know whether or not you have an SOL defense.

It's time to dig out your state civil code on statute of limitations for CC debt.

[llecs]

I checked, it is 6 years. If the DOFD is 1/2006, then come this January, then you'll be in the clear. A year and a few months from now, it'll drop off.

I would rapidly save up 100% now. They love to sue at the end of SOL.

If buying a home, you'd likely have to pay it off anyway.

[amh783]

Llecs thank you! I will get to saving right away.
Say they do try to sue right before the SOL takes effect and I pay. How would it report after that? Would the clock start again, and I'd have a paid collection on my CR for the next 6 years?

[llecs]

No!

SOL and CRTP are two different things. SOL is the time frame they have to sue you for the debt and it varies by state and debt type (3-15 yrs, or 10 yrs for open (CC debt) as someone mentioned...the 10 is in Ohio I believe). SOL clock starts at DOFD and can restart in some circumstances like a payment or promise to pay. In the case of this debt, you last paid right before the DOFD. If you PIF, SOL cannot restart because it is paid.

CRTP is the time frame a creditor or baddie has to report. This is set by federal law (though NY is an oddball, but that doesn't apply here). By law, most baddies, like this, have 7-7.5 years to report and the reporting starts also at the DOFD. Paying or doing anything will never reset the CRTP. It'll fall off anywhere from 1/2013 to 7/2013 no matter what you do. You can get it off earlier if CapOne agrees to a PFD.

Again, CapOne is very predictable and they LOVE to sue. Save rapidly. If I'm wrong (or we are wrong) then at least you have $2000 in savings which won't be that bad.