01-03-2011 07:08 PM
Has anyone had any luck with getting a PFD from capital one? If so, what actions did you take? All of this is so confusing, not sure if I should pif and try to get a pfd or just do a settlement to save me money. Which one will help raise my credit score? Any suggestio would be greatly appreciated.
01-03-2011 08:53 PM - edited 01-03-2011 08:58 PM
The very first thing I would suggest when evaluatiing when, how, or if to pay a debt is to know the expiration of your state SOL on debt.
Of the options listed below, anything short of a full payment, with no conditions, always runs some risk of legal action to collect the full amount by way of court judgment.
Pros: debt is satisfied, the threat of legal action goes away
Cons: No CR deletion of derogs. You are then left only with GW requests for deletion
2. Settlement offer
Pros: saves you money, and if they accept as legal payment in full, the threat of legal action goes away
Cons: They may not accept this conditional offer. If they accept, there is no condition of CR removal
3. PIF with the condition of CR deletion (a PFD request)
Pros: If accepted, the debt satisfied, and CR derogs deleted. A double win
Cons: It is a conditional offer that they dont have to accept. Many creditors and debt collectors have a corporate
policy not to accept any PFD offers
4. Settlement offer with the condition of CR deletion. Also a type of PFD request, but now with two conditions
Pros: The best of all outcomes, providing they accept. A triple win: debt discharged, CR derogs removed, and saved you $$$
Cons: Probably the least likely to obtain acceptance. You are asking them to accept less than what they are owed,
and to additionally delete accurate information from your credit file.
No one can tell you the best way to pursue payment options. It is a risk-benefit decision that varies with each individual account.
A PFD is always a conditional offer. It is not a magic bullet to just offer to pay and have it go away.
01-04-2011 06:18 AM
Thanks for responding RobertEG. Here is my situation, Capital one was co in 2009, its not with a ca yet, still reports from capital one on my credit. I am planning on applying for a fha loan in the summer. I know that this is something that needs to be taken care of, just dont know how to go about it. I know that the co is affecting my credit score big time. Will pif without a pfd or settlement help my credit score any, or should I just wait until I apply for a loan to see what the lo says?
01-04-2011 06:38 AM
You can certainly try to PFD, and there's no harm in doing so if you have the money set aside to PIF if you had to or SOL expired, but in my 3 years here, I don't recall any PFD success stories with CapOne. However, on the flip side, I have seen quite a few GW success stories lately. IME, DW had a CapOne CO. THe CL was $250 and after years of added interest each month, the balance was over $750. We probably sent dozens and dozens of PFDs (no really, up to 12 per month across a dozen different addresses and faxes). They either responded with a "No", "we need more info", "we already gave you an answer", or "we have no info about you in our system". It was always a random response. Finally, on the very month SOL expired, they sold the TL and the balance went to $0 and reported as a paid CO. No CA ever contacted us post-sell off and 3-4 months prior it to being deleted due to CRTP CapOne writes back and offers to negotiate.
If I had a CapOne CO reporting, and I was considering a mortgage, I would PIF and then start the GW process. While a CO, they will add lates every single month. You want as much time as possible in between the mortgage pull and the last late. If you pay now, this month would be the last late at the latest and that'll give you more time between pulls. Also, you'd save interest. Finally, your odds of a GW acceptance is greater if PIF as compared to settling.
Score increase? Maybe. Paying a collection or charge-off will never ever improve your FICO score (only prevents future damage). However, since this is a CC and if this CC is over the limit and/or hurts your overall utilization, then paying it to $0 will boost your score as far as that's concerned.
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