CAP 1 ChARGE OFF INCL IN UTILIZATION

[rom828]

I understand from this forum that I'm not alone with this problem. I have a Cap1 CO from 05-05 that shows on my report as charged off but per myfico reports it is being included in utilization... From what I've read Cap1 is notorious for reporting COs/collections as revolving accounts. What I don't understand is how they can do this? I realize it will show as an unpaid collection and be scored accordingly. I don't see how they report it as revolving....the only thing revolving about it is that they continue to add interest (NCO is current CA, but is not reporting). I am currently disputing this account because of date discrepancies on report, including showing 'ok' twice in 2007 and the last pyt was 2004 and DOFD was 03-03. I'm sure they're trying to re-age to get around SOL..which I'm past in GA...as far as can be determined. Is it legal for them to report a charge off as revolving and has anyone had this corrected with them on their report?!?!

[llecs]

CapOne is notorious for this. DW has CapOne on each CRA. It did affect utilization and was easily confirmed through the utilization listed on TU and EQ (page 2 or 3). For her, the account was CO'd with an org. CL of $250. The CO amt ran to just over $750. So, utilization was at 300% for that acct and consisted of a minimum of 25% on her overall util. In other words, the best she could do was 25% with balances at $0 for all other revolving debt. Either TU or EQ based the CL on the $250 while the other based it on the "high balance" which was listed at 620 or so.

PFDs didn't work and there wasn't anything to dispute on hers.

The status quo remained the staus quo until last week (or 2). CapOne mysteriously reduced the balance to $0 on each CRA. If I recall correctly, EQ went up 56 points, EX 4, and TU 40 or so. We were happy. It is listed now as a paid CO. We just sent a PFD for the org. amount of $762 with hopes they will delete for good. BTW, the acct is 4-5 yrs old.

[rom828]

Interesting that they changed am't to '0' ?!  Maybe that's how they responded to your original PFD?!

CL on mine was $200, which I never exceeded.  Balance is now $1934.....it was $1081 when they did CO.  I tried to work with them when it was first going in arrears to no avail, so I focused on my other creditors and paid everything else.

I've gone back and forth and sought advice on this forum as to how to handle.  NCO is now CA (there've been several) but they're not reporting.  Considered paying them based on their settlement offer, but now after more forum research, I'm disputing (with the help of any atty!) the inaccurate reporting, etc.  We'll see what happens!  I hope after disputing I'll be able to reach a settlement am't and  get it deleted, but that's probably wishful thinking.I may wind up wishing I'd let sleeping dogs lie! It's due to drop off 06-10 and is past SOL, but I've also read on this forum about their tactics to re-age and update so doesn't drop off and/or so they can sue.  That's why I felt imperative that I dispute the date in accuracies and avoid potential suit, etc.

The utilization issue is really frustrating.  I know it's keeping my score down.  My util. is  even worse than you DW's as w/o the Cap I'm at 35%.  Plan to have that even lower in couple of months by paying down 2 cards with balances, but with the Cap1 balance my util. is at 80%!!!!  I've seen other forum members with the same issue have util. as high as 300%!  I just don't see how a closed, charged off account balance can be included in utilization.  It should have it's own 'category' or something.  I guess there is no 'rule' against it, though.

Good luck witht he PFD!!!  Please post the outcome!!

[llecs]

That can't be a response to a PFD. I sent the PFD back in September. This latest PFD just went out after the report update. I'm afraid they sold it. It might be harder to remove the CO now (not like it was easy before).

It's amazing how those fees rack up. Luckily DW stopped at the CL.

I do understand from posts in here that NCO accepts PFDs, but be careful that the agreement includes a deletion of CapOne.

Good luck!

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rom828 wrote:

Interesting that they changed am't to '0' ?!  Maybe that's how they responded to your original PFD?!

CL on mine was $200, which I never exceeded.  Balance is now $1934.....it was $1081 when they did CO.  I tried to work with them when it was first going in arrears to no avail, so I focused on my other creditors and paid everything else.

I've gone back and forth and sought advice on this forum as to how to handle.  NCO is now CA (there've been several) but they're not reporting.  Considered paying them based on their settlement offer, but now after more forum research, I'm disputing (with the help of any atty!) the inaccurate reporting, etc.  We'll see what happens!  I hope after disputing I'll be able to reach a settlement am't and  get it deleted, but that's probably wishful thinking.I may wind up wishing I'd let sleeping dogs lie! It's due to drop off 06-10 and is past SOL, but I've also read on this forum about their tactics to re-age and update so doesn't drop off and/or so they can sue.  That's why I felt imperative that I dispute the date in accuracies and avoid potential suit, etc.

The utilization issue is really frustrating.  I know it's keeping my score down.  My util. is  even worse than you DW's as w/o the Cap I'm at 35%.  Plan to have that even lower in couple of months by paying down 2 cards with balances, but with the Cap1 balance my util. is at 80%!!!!  I've seen other forum members with the same issue have util. as high as 300%!  I just don't see how a closed, charged off account balance can be included in utilization.  It should have it's own 'category' or something.  I guess there is no 'rule' against it, though.

Good luck witht he PFD!!!  Please post the outcome!!

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[Anonymous]

BUMP. I would really like to understand this more. MODS, can you comment on this? I think my charged off credit cards are being counted in my util. I have 2 co first premier cards and 1 capone card charged off- my score watch cr says util of revolving credit is 84%. The two (crappy) cc i have now have very very low balances. Please forgive me if I sound like I dont know what Im talking about. I have lurked on these forums for the last month, but there is still alot I dont understand from just reading. Thanks in advance.

CJ

[Anonymous]

They possibly could be counted in your util. They are revolving accounts, even tho they went delinquent and charged off.

This is normal, and I don't see anything inaccurate about it counting in util or reporting as a revolving.

Add your balances and divide by total CL, that should give you util. That is the easiest way to determine if bad revolving accounts are included.

Message Edited by sidewinder on 07-11-2008 07:48 AM

[Anonymous]

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rom828 wrote:

Interesting that they changed am't to '0' ?!  Maybe that's how they responded to your original PFD?!

CL on mine was $200, which I never exceeded.  Balance is now $1934.....it was $1081 when they did CO.  I tried to work with them when it was first going in arrears to no avail, so I focused on my other creditors and paid everything else.

I've gone back and forth and sought advice on this forum as to how to handle.  NCO is now CA (there've been several) but they're not reporting.  Considered paying them based on their settlement offer, but now after more forum research, I'm disputing (with the help of any atty!) the inaccurate reporting, etc.  We'll see what happens!  I hope after disputing I'll be able to reach a settlement am't and  get it deleted, but that's probably wishful thinking.I may wind up wishing I'd let sleeping dogs lie! It's due to drop off 06-10 and is past SOL, but I've also read on this forum about their tactics to re-age and update so doesn't drop off and/or so they can sue.  That's why I felt imperative that I dispute the date in accuracies and avoid potential suit, etc.

The utilization issue is really frustrating.  I know it's keeping my score down.  My util. is  even worse than you DW's as w/o the Cap I'm at 35%.  Plan to have that even lower in couple of months by paying down 2 cards with balances, but with the Cap1 balance my util. is at 80%!!!!  I've seen other forum members with the same issue have util. as high as 300%!  I just don't see how a closed, charged off account balance can be included in utilization.  It should have it's own 'category' or something.  I guess there is no 'rule' against it, though.

Good luck witht he PFD!!!  Please post the outcome!!

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How do you think  Cap 1 is trying to re-age. Showing "ok" in 2007 on your payment history is not re-aging and can not reset SOL. If they were to sue, they'd have to prove any payments that they claimed reset SOL.

If it were me, I'd be happy that those two months didn't say CO or 30,60,90,120, etc.

The account type is revolving. That doesn't change because it has went delinquent. Just as a delinquent installment loan would still be an installment loan.

Yes, the util is hurting you and the only way that will stop hurting you is if you pay the debt or if Cap 1 sells the account and changes the balance to $0.

Message Edited by sidewinder on 07-11-2008 07:54 AM

[Anonymous]

Rom,

Is your report showing a 0 bal?