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Considering contacting Capital One for a settlement on a defaulted loan since 8/2008. I have heard that Capital One is a bear for negotiating debt and of course this will fall off my CR this year.
1. If I start a payment plan does that restart the 7 year CR time table.
2. If I settle for less than amount due ($16,400 - original debt $9,400) what impact does that have on credit score?
Any suggestions, advice or previous experiences with Capital One?
I would recommend sending a pay for deletion (PFD) offer.
If accepted, your other concerns become moot.
If you cannot pay now and enter into a payment plan, no, it does not alter the credit report exclusion date of whatever derogs have been reported.
Leave it alone and don't poke the bear. You are likely outside the statute of limitations at this point. The thing falls off in a few months. Is it not in outside collections? You wouldn't even get brownie points for settling an old unpaid debt because that info falls off soon too.
If you have a guilty conscience, wait for the debt to fall off and donate the money to your favorite charity.
@Anonymous wrote:Considering contacting Capital One for a settlement on a defaulted loan since 8/2008. I have heard that Capital One is a bear for negotiating debt and of course this will fall off my CR this year.
1. If I start a payment plan does that restart the 7 year CR time table. Nope, the time it can remain on file is calculated from the DoFD and its max time is 7.5 yrs from this date.
2. If I settle for less than amount due ($16,400 - original debt $9,400) what impact does that have on credit score? Impact on score would be the same. When it updates to reflect the paid or settle status it will drop your Fico if its not already updating monthly. What I would do at this point with so little time to go on file is wait for it to drop and then if its also past your states SOL I would settle for no more than 20%.
Any suggestions, advice or previous experiences with Capital One? Cap-1 is more apt to grant a PFD in the final year its on file, I surmise this from all the threads I have read on the subject over the years.
There is good reason to still pay a delinquent debt after the collection becomes excluded.
It results in satisfaction of the debt, and thus removes the need to disclose it in any credit application.
Credit report exclusion will often lead to the debt owner becoming more receptive to settlement at a lower percent of the debt.