Settling with Cap1

[Anonymous]

Cap1 sent my deliquent account to a lawfirm for collection so as far as i know Cap1 still owned the debt but was having the lawfirm collect on it. The balance when i settled was around $1080 or so. I settled the account for about $864. Should the TL on my credit report now read $0 or should it still say i owe some type of balance after the payments are applied? I wont be pulling all 3 reports via CCT until the 14th, but as of now via CK TU it went from showing a balance of $1151 to now $256. Is that accurate with a settlement?

[damnedanddetermined]

they did that to me too...I had to make several calls to the EO and still couldnt get them to correct it. They continued to tell me it would take 60 days to show a zero balance! Finally got a hold of a knowledgeable csr and explained that if it wasnt corrected soon, I would file a cfpb complaint (which I did) it was removed 2 weeks later, and the entire account vanished from my reports a week after that! Just stay on them!!

[Anonymous]

Thanks for the info! How long do you think i should give them until i start making a ruckus? Nothing has updated on the other reports as of today.

[Anonymous]

That is the first action typically but they should report a 0 balance and settled status based on your agreement. Within 30 - 45 days. Keep an eye on your alerts for this. Did you get settlement in writing?

[RobertEG]

If the payment was clearly accepted as a settlement of the debt, then there is no longer a debt, and the balance under their collection must be updated to $0.

The FCRA only specifies that a party is required to promptly update their prior reporting when necessary to maintain its currect accuracy.  No specific period in days/weeks/etc. is set forth.  FCRA 623(a)(2).

A reasonable interpretation of promptly would be in theri next regular reporting cycle.  Thus, actual update in one's credit report could reasonably take up to 30 days to forward to the CRA, plus whatever processing time is involved at the CRA.