topic Re: Capital One credit card settlement offer without signed agreement in Rebuilding Your Credit

Capital One credit card settlement offer without signed agreement

Anonymous — Thu, 05 Apr 2018 15:12:38 GMT

Hello all. New to this forum. Essentially my wife had some serious health/personal issues got in over our heads and ended up not being able to stay afloat. Instead of continuting the cycle of paying minimums that we couldn't even afford to pay we've stopped paying our debts and started putting money aside in an attempt to negotiate settlements. I've negotiated a settlement with them, my total bill was around $2900 and they've agreed to take a lump sum payment of $1000. The issue is they can't gurantee that I would have a written agreement within 10 days which is the time that the payment would be due. They said they have to send the agreement information to another department then they mail out the signed agreement, if the payment is not received within the 10 days the agreement will not be honored and the card will be charged off. I told them I had to think about this. Any suggestions on what would be the best way to proceede? Thanks!

Re: Capital One credit card settlement offer without signed agreement

IOBA — Thu, 05 Apr 2018 18:26:23 GMT

My suggestion is ALWAYS have a written offer/agreement BEFORE giving any company the cash.

Be aware that Cap 1 may send you a 1099-C beginning of 2019 that states you received $1900 income. (The difference between what they say you owe and what you paid.) You will be required to pay taxes on the amount stated on the 1099-C.

When I have done negotiations in the past for others, I would tell the creditor that since someone else was helping pay that money to them, the other person required the offer in writing before they would send the money directly to the creditor. The creditor has always complied.

YOU need that settlement letter as well as proof of payment for your records for years to come just in case you ever need to prove that the debt was settled/paid.

Good luck! Hope your wife is better.

Re: Capital One credit card settlement offer without signed agreement

Anonymous — Thu, 05 Apr 2018 23:24:39 GMT

One thing I know they can’t delay is xhargeoff. Capital one isn’t going to screw you over here. You can always call them and record the call. Or you can get the employees name and id number. Document the date and time you called so if any issues came up you had that and would be easy to resolve. Then when you get your letter in the mail you have that.

I wouldn’t want to risk losing that settlement amount but understand wanting it in writing. If you can catch it before it charges off that be nice.