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Interesting to those seeking settlement with Cap 1?

Senior Contributor

Interesting to those seeking settlement with Cap 1?

SchoolbusKid has a separate thread regarding American Collections Enterprise and in searching for whatever poop I could find on them, I found this:

Account Balance Days Since Charge-off
0-90 91-180 181-730 >730
$0-$1,500 70% 70% 50% 50%
$1,501-$3,000 70% 50% 50% 40%
>$3,000 70% 50% 40% 40%

Know what this is? Yep, you guessed it! It's Cap One's guidelines in accepting/offering settlements based on amount owed and time charged off!! This apparently regards in house charge off collection and via CA.

Hopefully, some of you guys can use this!! Smiley Happy

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Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Message 1 of 20
19 REPLIES
Valued Contributor

Re: Interesting to those seeking settlement with Cap 1?

so if you have a charge off with cap 1 for 3300 including interest (the real balance is 1500) how much will they settle for? its been charged off since 2/2004
Message 2 of 20
Senior Contributor

Re: Interesting to those seeking settlement with Cap 1?

I THINK that would be about $1324 (give or take a little bit).

My "chart" didn't post very well, and TBH, though I know HTML, I'm not in the right frame of mind to fix it at this moment. I'll fix it tomorrow, though ...

I think the main problem is that it's confusing the way that it's displayed!!! Smiley Mad

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Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Message 3 of 20
Established Contributor

Re: Interesting to those seeking settlement with Cap 1?

Just remember...if you settle and they forgive more than $600.00 you will get a 1099 for tax purposes.
Smiley Happy 
Message 4 of 20
Valued Contributor

Re: Interesting to those seeking settlement with Cap 1?

i'm sorry, but what does that mean?
Message 5 of 20
Frequent Contributor

Re: Interesting to those seeking settlement with Cap 1?

oracles:
 
Sometimes Creditors, like Capital One use the form IRS 1099-C for a forgiveness of debt (the balance of which is not paid) when a settlement is reached.   
 
So say you and the creditor agree to 40% of the balance.  Then the other 60% is reported to the IRS on form 1099-C (forgiveness of debt) where you will report that as income on your IRS-1040.
 
 
10/01/2017 myFico EQ-778 TU-793 EX-781
11/01/2017 myFico EX-799, Barclays 11-4 Reported: EQ-796 TU-826 EX-799
Message 6 of 20
Frequent Contributor

Re: Interesting to those seeking settlement with Cap 1?

 

Capital One Settlement Guidelines:

Account Balance              Days Since Charge-off         
                                      0-90     91-180     181-730     >730

$0 - $1,500                    70%       70%          50%         50%
$1,501 - $3,000             70%       50%          50%         40%
>$3,000                           70%       50%          40%         40%
10/01/2017 myFico EQ-778 TU-793 EX-781
11/01/2017 myFico EX-799, Barclays 11-4 Reported: EQ-796 TU-826 EX-799
Message 7 of 20
Moderator Emeritus

Re: Interesting to those seeking settlement with Cap 1?



teamfico wrote:
oracles:
 
Sometimes Creditors, like Capital One use the form IRS 1099-C for a forgiveness of debt (the balance of which is not paid) when a settlement is reached.   
 
So say you and the creditor agree to 40% of the balance.  Then the other 60% is reported to the IRS on form 1099-C (forgiveness of debt) where you will report that as income on your IRS-1040.
 
 


Anytime they forgive more than $600 the IRS requires the creditor to file a form 1099C and give you a copy.
 
Since it is money that you got (either a cash loan or spent using a CC, etc) and you don't have to repay it, you have to include it as income and pay taxes on it.
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Message 8 of 20
Valued Contributor

Re: Interesting to those seeking settlement with Cap 1?

thanks for the clarification, now is that including interest, because my friend has a balance owed of 1500 but because of interest, they want $3269. Is it off of the balance plus interest or just balance. Also if he settles, in ny they have a 5 year rule that it will come off if paid, but is that the same as settling. thanks
Message 9 of 20
Senior Contributor

Re: Interesting to those seeking settlement with Cap 1?

So why won't they remove MY CO???  I paid it up in Dec 05 & my DOFD was 07/03.  Here's straight from my EQ report.
 
If Date of Last Payment was 8/02, wouldn't DOFD be 9/02????
 
CAPITAL ONE

PO Box 30281
Salt Lake City, UT-841300281
 

Account Number: XXXX                     
Current Status: CHARGE-OFF  Smiley Mad
Account Owner: Individual Account.    
High Credit: $520  
Type of Account Revolving loans have an amount owed which varies from month to month, like a credit card.: Revolving
Credit Limit: $0     
Date Opened: 2000/07 
Balance: $0  
Date Reported: 05/2008 
Amount Past Due: $0 
Date of Last Payment: 08/2002 
Actual Payment Amount: $0  
Scheduled Payment Amount: $0  
Date of Last Activity: N/A
Activity Description: Paid 
Charge Off Amount: $0   
Date Closed: 12/2003 
Type of Loan: Credit Card 
Date of First Delinquency: 07/2003 
Comments: Paid charge off, Account closed by credit grantor   (Oh Really??)
 
81-Month Payment History
 
Year  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008   *      *      *      *                
2007   *      *      *      *      *      *     *     *     *      *      *     *
2006   *      *      *      *      *      *     *     *     *      *      *     *
2005   *      *      *      *      *      *     *     *     *      *      *     *
2004   *      *      *      *      *      *     *     *     *      *      *     *   
2003   *      *    30    60     *      *   30   60   90  120  120 CO
2002   *      *      *      *      *      *     *     *     *      *      *     *
2001                                                     *     *      *      *     *


Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 04/2017 TU 754 - EQ 757 - EX 747
Goal Score: 850

Bury me in the garden...last app 08.09.15

Message 10 of 20