Charge Off-how should I approach?

[mrmagic9799]

I have a CO 12/1/2007 on from Cap1 bank from 2006-7 and on my report its showing as balance owed ~$810.  Now I have knowledge of this account, and asked to close this account way back when.  I'm cleaning my reports up and want to know what should I do.   While going through my filing cabinet I found a letter, which was the final correspondance from Cap1 on 7/27/2007 that I received stating the following

"Dear customer,

Your cap 1 deposit  account has been closed and charged off due to the overdrawn status.  bla bla blah bla blah.

At the top it list my account number and account balance of $32.00!!!!

I've disputed this with the CB already and they "verified" it last month.

My question is what course of action should I take with this letter i have from Cap1.

[llecs]

I would write CapOne and ask for info on the last several transactions. Maybe a check cleared after the CO? Hyped up interest? I don't know, but if you ask them, they are pretty good of sending that too you. Be friendly and courteous each time and it might take a few CSRs before finding the one willing to send that. Also mention each time that you have a letter from them with the $32 balance owed...and no, interest can't bring it that high in 3 yrs. BTW, CCs and deposit accounts are different, but DW had a CapOne CO and I asked them to fax everything and they did. FYI.

[mrmagic9799]

Well, here's the thing.  I have the statements prior to receiving the final charge off letter and that balance would match.  HOWEVER when they sent me the letter stating that it was about to charge off and the balance it showed $32.00!!!!

[llecs]

So you are saying they low-balled it with the $32? Maybe a typo. I would proceed on the assumption that $800 is owed. I'd call and confirm the balance and then try sending PFDs.

[mrmagic9799]

Right, I'm sure it was a typo (perhaps). I guess what I'm asking is how can I take advantage of this "typo"?

[llecs]

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@mrmagic9799 wrote:
Right, I'm sure it was a typo (perhaps). I guess what I'm asking is how can I take advantage of this "typo"?

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I don't think a typo would nullify a debt. You can try but I don't see it happening. If you ever pursue a PFD down the road, be sure to include Chexsystems in with the 3 CRAs just in case they report there too.

[valley_man0505]

I had a CO from CapOne in 2003.  After the CO, they continued adding interest and a $25 late fee each and every month until account reached CRTP a couple months ago and more than $5000 of extra fees had been added over the years.  Not only did they add these fees each month, but they continued reporting to the CRA's every month for almost 7 years.

If your debt was $32 when it was CO'd 3-4 years ago, they may have been adding $25 late fees each month (up until the recent credit credit legislation changes, anyway).  Three years of $25/month would be $900.

[mrmagic9799]

So should I send a copy of the letter to each CB showing the balance?

[RobertEG]

I dont see a basis for dispute.

Charge-offs themselves are not originally a matter of credit reporting.  It is initiallly an internal bookeeping measure taken by a creditor in order to remove the debt as an asset in their accounting ledger.  The amount of the debt is not really the issue. They told you in the letter that it had been charged-off.

Regardless of if or when you pay the debt, or its amount, if the OC did a charge-off, they are entiled to report it to a CRA.

I know of no basis for disputing this, other than to dispute the legitimacy of the debt itself.

It appears that resort now would be by way of a GW or pfd letter.

[mrmagic9799]

I'm trying to get it paid. Obviously for as least amt as possible. I figure if I get them to mark paid for the $32.00 vs for a $400 PFD it's a win.