topic Re: Capital One Credit Card - PIF or Settlement? in Rebuilding Your Credit

Capital One Credit Card - PIF or Settlement?

lisbonic — Fri, 05 Aug 2011 19:58:32 GMT

Hello,

I have a closed credit card with Capitalone that is reporitng a balance of $1,577. The account was closed due to non payment in March of 09.

The credit limit of the card is $500, and because Capital One is reporting the balance and adding interest themselves, it is showing up in my utilization score and obviously hurting.

I called to sort this out today, as I have money now.

They directed me to a collection agency called Northland or somehting or other, and they said that yes, Capitalone still owns the debt, they just work with them to help collect.

I was offered a settlemenmt of.60 cents n the dollar of $941.

What is the best course of action here? Do I need to actually send a PFD letter to Capital One? Will it report differently if I pay the settlement compared to the full amount?

Help!!!!

Re: Capital One Credit Card - PIF or Settlement?

lisbonic — Fri, 05 Aug 2011 21:03:22 GMT

As a misnomer, I searched the forum and found other threads over the years related to this topic, but most seemed related to dealing with a CA not the OC.

So can I even try to send a PFD letetr with a PIF promise to CapitalOne or is that just not going to happen?

Re: Capital One Credit Card - PIF or Settlement?

kjm79 — Sat, 06 Aug 2011 00:12:05 GMT

Try the PFD by offiering to pif with the OC first. If the CA is reporting ask if OC can pull the collection back.

I'm assuming the account is listed as a charge off. PIF or settling will have the same effect score wise. It'll say something like settled or payment after charge off...

Re: Capital One Credit Card - PIF or Settlement?

lisbonic — Sat, 06 Aug 2011 03:52:35 GMT

Ok, thansk for responding and yes it is closed/charged off from CapitalOne, but they still report a balance, own it and charge me interest every month.

So my conversation with 3 different Capital One reps over the phone said they I HAVE to do the payment, even if it's a PIF, though the agency they use, even though Capital One still owns the debt.

Should I just create a PDF letter to send to Capital One anyways?

And if what you say is true in regards to a settlement or a PIF, do I need to PFD the the CA too, or instead? The CA does not show up as double listing this debt on my credit report.

Re: Capital One Credit Card - PIF or Settlement?

AndySoCal — Sun, 07 Aug 2011 03:57:22 GMT

I would agree work with Capital one to pay account. Offer Cap 1 to pay in full if they can set up a payment plan and recall the acocunt from the CA. The acocunt being over the credit limit. as well as being charge off is hurting your score. Getting the account under the credit limti help after it is paid you can try to good will the account off your credit report. Capital One I doubt very much will do a PFD. A settled account is also considered derogatory and hurts your score.

Re: Capital One Credit Card - PIF or Settlement?

Anonymous — Sun, 28 Aug 2011 20:35:00 GMT

I know this is a few weeks old, but this summer I've been having the same battle with Cap1. I had $ to settle my accounts, and had received a letter from a law firm on behalf of Cap1. I got in touch with somebody from the Cap1 executive office after I emailed the CEO, and she said she could not accept a payment from me (I even offered PIF!) and I would have to deal with the law firm. No way, so I DV the law firm, no reply, just got a letter from Cap1 offering to work with me on my acct. Kind of dumb since I offered to pay them a few months ago... but I guess I got what I wanted by DV.

Try that first, DV the CA, see if it goes back to Cap1. I haven't yet dealt with a CA.

Good luck!

edit-- and i initially went the PFD route, no luck obviously. They don't seem even a little bit interested in that.