topic Re: Who owns my Capital One charge off? in Rebuilding Your Credit

Who owns my Capital One charge off?

Anonymous — Mon, 28 Sep 2015 18:22:10 GMT

I have a charged off Capital One account that is still showing a balance of $2,917. I am unsure if it has been sold to a CA or not, but I thought I remember getting a letter in the mail years ago from a CA, but have no records of it. I had assumed that it had been sold to a CA and disputed the balance with all 3 CRA to have them update the balance to zero, as the debt had been sold. All three CRA came back with "investigation complete, dispute unchanged". This trade line is killing my score and my utilization percentage!

How should I go about finding if, in fact, Capital One still owns this debt or if they have sold it? I don't want to encourage them to send it to collections! Would a letter be the best course of action? I know you can't DV a OC, but what do you do in this case?

I'm outside of the SOL, but still want to be cautious with my strategy. (This is my biggest baddie that I need to clear before I take the next step towards buying a house next year, so .) I've read that Cap One is really hard to get PFD's, but if they own it, I am willing to try.

Details:

Balance: $2,917 as of Sept 2015

Original Credit Limit: $3,500

Status: Charged off - but still reporting monthly balance - it says it was closed June 2011

DOFD: 12/2010

SOL expired 12/2014 (SOL in my state is 4 years, so I'm out of the woods for a judgment)

Scheduled to fall off: between Sept and Nov 2017

Any comments or experience with this?

Thanks!

Re: Who owns my Capital One charge off?

Anonymous — Mon, 28 Sep 2015 19:07:59 GMT

@Anonymous wrote:
I have a charged off Capital One account that is still showing a balance of $2,917. I am unsure if it has been sold to a CA or not, but I thought I remember getting a letter in the mail years ago from a CA, but have no records of it. I had assumed that it had been sold to a CA and disputed the balance with all 3 CRA to have them update the balance to zero, as the debt had been sold. All three CRA came back with "investigation complete, dispute unchanged". This trade line is killing my score and my utilization percentage!

How should I go about finding if, in fact, Capital One still owns this debt or if they have sold it? I don't want to encourage them to send it to collections! Would a letter be the best course of action? I know you can't DV a OC, but what do you do in this case?
I'm outside of the SOL, but still want to be cautious with my strategy. (This is my biggest baddie that I need to clear before I take the next step towards buying a house next year, so .) I've read that Cap One is really hard to get PFD's, but if they own it, I am willing to try.

Details:
Balance: $2,917 as of Sept 2015
Original Credit Limit: $3,500
Status: Charged off - but still reporting monthly balance - it says it was closed June 2011
DOFD: 12/2010
SOL expired 12/2014 (SOL in my state is 4 years, so I'm out of the woods for a judgment)
Scheduled to fall off: between Sept and Nov 2017

Any comments or experience with this?
Thanks!

If Capital One is reporting a balance and updating monthly, then they still own it, and the CA is only been "hired" to collect.

Re: Who owns my Capital One charge off?

RobertEG — Tue, 29 Sep 2015 00:55:12 GMT

While they are obligated to have promptly updated the balance to $0 upon sale of the debt, and thus it is a normal assumption that if reporting a balance they still own it, that is not conclusive. They could simply be negligent in promplty updating their reporting.

If they have, in fact, sold the debt and you contact them, there is no peril. They could not sue or take any payment. They would be through with you for all intests other than fulfilling their requirement to update their balance to $0.

If they still own the debt, then you would have basis for offering a PFD.

Just be careful not to make only a partial payment, as that might start a renewed statute of limitations on the debt. Pay all, thus eliminating any issue of legal action, or pay nothing and retain its SOL status.

Ultimate exclusion of their reported CO must occur no later than 7 years plus 180 days from the DOFD, and thus payment or non-payment has NO effect on when the CO will become excluded from your credit report.

I see no peril in contacing them if you are willing to negotiate on the debt and are careful not to make any partial payments.

Re: Who owns my Capital One charge off?

SunriseEarth — Wed, 30 Sep 2015 00:30:27 GMT

Cap One typically assigns CAs to collect on their behalf, but they retain the debt. You can contact the Cap One EO, but they will likely refer you to the CA to deal. Since you're past SOL, you are definitely in a good position to offer a settlement. I settled for about 40% on my CO. Although Cap One doesn't accept PFDs, settling/paying is still in your advantage. This will stop the monthly reporting and also will quit harming your UTIL (COs reporting balances are factored into your UTIL).

Re: Who owns my Capital One charge off?

Anonymous — Thu, 01 Oct 2015 15:42:55 GMT

@SunriseEarth wrote:
Cap One typically assigns CAs to collect on their behalf, but they retain the debt. You can contact the Cap One EO, but they will likely refer you to the CA to deal. Since you're past SOL, you are definitely in a good position to offer a settlement. I settled for about 40% on my CO. Although Cap One doesn't accept PFDs, settling/paying is still in your advantage. This will stop the monthly reporting and also will quit harming your UTIL (COs reporting balances are factored into your UTIL).

Thanks for the info SunriseEarth!

40% sounds great! When you settled with Cap One, how much longer did you have until the CO was to drop from your report? Did you negotiate with a CA for the settlement? If so, which one? Did you do it over the phone or by mail? How much did your score change after settling? Thanks!