topic Re: Capital One will not report 0 balance after settling in full in Rebuilding Your Credit

Capital One will not report 0 balance after settling in full

sharriel — Sat, 09 Nov 2013 19:33:00 GMT

I have talked to a dozen people from regular agents to the Executive Office. They are all telling me the same thing. That just because I settled, they have to report the remaining balance.

I have it in writing they would mark it settled in full. Nothing about a 0 balance though.

Am I crazy or does settled in full mean that I no longer owe anything???

Re: Capital One will not report 0 balance after settling in full

Anonymous — Sat, 09 Nov 2013 19:43:07 GMT

wow... I thought if you pay an account they have to mark with 0 balance also... I'm curious to see the responses to this.

good luck

Re: Capital One will not report 0 balance after settling in full

newmomnewme — Sat, 09 Nov 2013 19:57:34 GMT

did you settle with Cap1 or a CA? If it was the CA, you might need to contact them to update the TL.....could Cap1 have only sold part of your account???? Doesn't sound likely or legal.

Re: Capital One will not report 0 balance after settling in full

buildafico — Sat, 09 Nov 2013 21:59:14 GMT

They dont have to report a 0 balance if it wasn't in writing, a settlement simply means they will no longer contact you about the debt, and consider the matter closed. However they didn't agree to anything regarding how it was reported.

Re: Capital One will not report 0 balance after settling in full

Anonymous — Sat, 09 Nov 2013 22:20:25 GMT

@buildafico wrote:
They dont have to report a 0 balance if it wasn't in writing, a settlement simply means they will no longer contact you about the debt, and consider the matter closed. However they didn't agree to anything regarding how it was reported.

Yes, they do have to report a 0 balance. In a settlement, part of the debt is forgiven, which means uncollectable. If they continue to report a balance, that indicates it is due and still owed.

Re: Capital One will not report 0 balance after settling in full

buildafico — Sat, 09 Nov 2013 22:22:40 GMT

This is the only place in the world I'm happy when i'm wrong

Re: Capital One will not report 0 balance after settling in full

Anonymous — Sat, 09 Nov 2013 22:46:33 GMT

I can't find the actual regulation that covers that but I did find this and it is the way the CRAs say it has to be reported.

Account Paid in Full for Less than the Full Balance (Requires Account Status Code 13 or 61-65 and Current Balance = 0. Refer to Frequently Asked Questions 38 and 52 for reporting guidelines.) Definition: To be used when the furnisher accepts payment in full for less than the full balance. Includes short sales when the deficiency balance is forgiven.

Question: How should accounts that are paid in full for less than the full balance (i.e., settled) be reported?
Answer: Report the following Base Segment fields as specified:
• Account Status Code = 13 or 61-65, as applicable • Payment Rating = required when the Account Status Code is 13 or 65. Blank fill for Account Status Codes 61-64. • Special Comment = AU (Account paid in full for less than the full balance) • Current Balance and Amount Past Due = zero

Re: Capital One will not report 0 balance after settling in full

Anonymous — Sat, 09 Nov 2013 22:41:09 GMT

@buildafico wrote:
This is the only place in the world I'm happy when i'm wrong

LOL.

Re: Capital One will not report 0 balance after settling in full

sharriel — Sun, 10 Nov 2013 00:30:47 GMT

Thanks Guiness! These people are driving me nuts! I know it is not the best way to go but I did dispute it with the CRA's. So we will see in 30 days if they fix it. If not, I will really be mad. It is killing my UTIL As soon as they knock it down to 0, my UTIL will go from 107% to 9%. This is pretty big so I am not letting them slide or make me think I am wrong on this one.

Re: Capital One will not report 0 balance after settling in full

Shogun — Sun, 10 Nov 2013 03:22:48 GMT

@sharriel wrote:
Thanks Guiness! These people are driving me nuts! I know it is not the best way to go but I did dispute it with the CRA's. So we will see in 30 days if they fix it. If not, I will really be mad. It is killing my UTIL As soon as they knock it down to 0, my UTIL will go from 107% to 9%. This is pretty big so I am not letting them slide or make me think I am wrong on this one.

Agreed. Now it can state "settled for lesser amount". But the amount has to be $0 in the balance.

Re: Capital One will not report 0 balance after settling in full

sharriel — Mon, 11 Nov 2013 13:18:49 GMT

Quickest dispute ever!! These jerks came back with the balance VERIFIED! **bleep**???

I don't know what else to do! I have done direct dispute and disputed with the CRA's. I don't have $$ for an attorney. UGH!! These are the last 2 balances on my account and I need them reported correctly.

Re: Capital One will not report 0 balance after settling in full

Anonymous — Mon, 11 Nov 2013 13:28:40 GMT

Have you done the CFPB complaint and the FTC for Fair Credit Billing Act?

Re: Capital One will not report 0 balance after settling in full

sharriel — Mon, 11 Nov 2013 13:29:41 GMT

I have not and not familiar with either of those. I will look into it

Re: Capital One will not report 0 balance after settling in full

sharriel — Mon, 11 Nov 2013 13:43:39 GMT

Just filed. Thanks!

Re: Capital One will not report 0 balance after settling in full

Anonymous — Mon, 11 Nov 2013 13:47:17 GMT

Good luck!

Re: Capital One will not report 0 balance after settling in full

RobertEG — Mon, 11 Nov 2013 15:38:19 GMT

The statutory basis for the required update is FCRA 623(a)(2), which imposes a duty on any furnisher to promptly update prior reporting so as to maintain its current accuracy.

Once a debt has been paid to the satisfaction of the creditor, regardless of the amount they chose to accept as satisfaction of the debt, there is no more debt due to the OC, and no more debt subject to continued collection by a debt collector. Ergo, each must promptly update their respective reportings to $0.

How either can assert a continued debt or amount remaining under collection once they have accepted payment as satisfaction of the debt defies simply logic.

Perhaps they are confused by their separate reporting obligation to the IRS, via a form 1099c, if the amount of the cancelled debt is $600 or more.

That reporting is unrelated to credit reporting.

As for filing a comlaint with the CFPB, if the facts of the case used to support a violation of the FDCPA or FCRA are not contested, then no judicial review is needed, and they can intervene without need to bring legal action on behalf of the consumer

The facts supporting their failure to have complied with the FCRA in this situation appear uncontested..... the debt is satisfied.

The only possible exceptioh I would see is if the OC accepts an amount AS satisfaction of the debt with them, yet the debt collector separately asserts that some fee or amount is separately obligated to them based solely upon their debt collection activities.

If they were to make such an assertion, they would be in violation of FDCPA 808(1) unless there is some specfic authorization in the account agreemment creating the debt, or some provision of state law that entitles their collection of any such amount.

Re: Capital One will not report 0 balance after settling in full

Anonymous — Mon, 11 Nov 2013 15:42:41 GMT

@RobertEG wrote:
The statutory basis for the required update is FCRA 623(a)(2), which imposes a duty on any furnisher to promptly update prior reporting so as to maintain its current accuracy.
Once a debt has been paid to the satisfaction of the creditor, regardless of the amount they chose to accept as satisfaction of the debt, there is no more debt due to the OC, and no more debt subject to continued collection by a debt collector. Ergo, each must promptly update their respective reportings to $0.
How either can assert a continued debt or amount remaining under collection once they have accepted payment as satisfaction of the debt defies simply logic.

Perhaps they are confused by their separate reporting obligation to the IRS, via a form 1099c, if the amount of the cancelled debt is $600 or more.
That reporting is unrelated to credit reporting.

As for filing a comlaint with the CFPB, if the facts of the case used to support a violation of the FDCPA or FCRA are not contested, then no judicial review is needed, and they can intervene without need to bring legal action on behalf of the consumer
The facts supporting their failure to have complied with the FCRA in this situation appear uncontested..... the debt is satisfied.

The only possible exceptioh I would see is if the OC accepts an amount AS satisfaction of the debt with them, yet the debt collector separately asserts that some fee or amount is separately obligated to them based solely upon their debt collection activities.
If they were to make such an assertion, they would be in violation of FDCPA 808(1) unless there is some specfic authorization in the account agreemment creating the debt, or some provision of state law that entitles their collection of any such amount.

It has to do solely with Cap 1 stating that since there was a settlement on the account, the difference is still reportable. Plain and simple.

Even if there was money owed to a CA, Cap 1 could not include that amount on their TL and report it as a balance. This all has to do with Cap 1 and not how a CA is reporting.

Re: Capital One will not report 0 balance after settling in full

sharriel — Mon, 11 Nov 2013 18:04:20 GMT

Thank you guys for helping me realize that I am not the crazy one and they just obviously don't know what they are doing!

The thing that makes me the most mad is that both of these 2 accounts hit 7 year within 7 months and I could have easily just let them drop off but I made the decision to do the right thing and pay them and then they screw me by doing this!

Luckily, they were never sold to a CA!

Re: Capital One will not report 0 balance after settling in full

Anonymous — Mon, 11 Nov 2013 19:12:33 GMT

There is a regulation that tells how a creditor has to report a settlement. For the life of me, I can't find it anywhere now that I am looking for it.

I found it once when I wasn't specifically looking and of course did not bookmark it.

I will keep searching. And it does say any amount forgiven has to be reported a 0 and cannot be collected on.

Re: Capital One will not report 0 balance after settling in full

Anonymous — Mon, 11 Nov 2013 20:52:58 GMT

when did you pay it off... maybe they havent reported it just yet.. I was talking to an experian rep and they told me some places update credit bureau's monthly, every 3 months or every 6 months.