Beyond p%&%#! at CapOne!

[scmami]

So I settled with CapOne for 70% because they were killing my utilization. And I got a reciept/bill in the mail for the remaining balance. I called the rep I settled with and she says, "Oh, you'll always have a balance with us since you didn't pay in full" What. The. Heck?! Isn't that what settling means?? She says the unpaid balance will continue to report (and affect my utilization) unless I PIF. I should add this was a 4 year old out of SOL charge off that I paid only because it was affecting my utilization (222%!) Now, if it shows a balance (hasn't reported yet) I will be right back in the same boat. What can I do to have them report $0? Can I dispute it? Can/should I call a lawyer? I'd rather not pay the difference due to the fact that even at 70% I paid twice of my original balance!

[SoulMaster]

Sounds to me like you didn't settle.  Sounds like you fell for one of the various cons the collectors use.

Here's how to tell:

If you have a letter from them that states "We will accept a reduced payment of XXX by MM/DD/YY and consider this matter settled in full", or something to that effect, you settled in full.  Note: You should have recieved this letter BEFORE you paid them.

If you don't have that letter, you didn't settle in full.  It's really that simple.

For your description, all you have is a reciept.  In other words, you though you were settling in full, but you didn't.

Note:  It doesn't matter what collectors say, only what you have in writing.

-SM

[scmami]

This was the OCs in house collections. I do have a letter, it states that Capital One accepts $xxxx as my settlement. It actually says it two or three times on the letter. I made sure of this before I paid them. The reporting has not hit yet, so it remains to be seen how they report....however, I am not the first CapOne has done this to. I've seen on this forum and several others about their iffy reporting methods after settled charge offs. My question is who do I contact/how can I get this resolved?

[llecs]

OP, I've read of at least one other example in these forums where the poster said the same. If I had that happen I would start by waiting a full month, regardless of how they updated. After a month it still shows a balance, then I'd call back and go up the food chain, all the while offering to send the letter. If that fails, then I'd start mailing them, and I'd probably copy the BBB, FTC, Banking Commission (YMMV on the name in your state), and so on just to annoy them and spur them to action.

[RobertEG]

The term "settlement" is admittedly a bit vague in the legal sense, but nonetheless it is a representation that, at least in my opinion, clearly implies satisfaction of the debt.

They are dealing with laymen consumers, not lawyers, so nit-picking over legal definitions would not impress a judge.

I think their implication is clear as a bell, and would be interpreted as such by most any consumer.

The account should report paid, $0 due.

First, file a direct dispute with them, disputing the accuracy of their reporting, and get their verification in writing that your settlement did not constutute satisfaction of the debt.

Then take it to a lawyer.

[scmami]

Thanks to you all. Llecs, I will wait for their updating and start from there... But I'm going to prepare the letters now. I have read of others getting them to properly report, but on less than credible sites so I'm not sure of their methods. And RobertEG... How do I file a direct dispute? Is this just where I send them a letter stating that I dispute the reporting etc etc? I have done disputes with the CRAS and the BBB before, but never with an OC. Thanks for the advice and I'll be sure to report the results.

[LIGHTNIN]

By using the search function, here are some threads you may find helpful, for " direct dispute"

http://ficoforums.myfico.com/t5/forums/searchpage/tab/message?filter=location&location=forum-board%3...

[scmami]

Perfect. Thanks Lightnin!

[RobertEG]

“This is a Notice of Direct Dispute with you, under the provisions of FCRA §623(a)(8)(D), of the accuracy of information you have reported to my credit file.

       ►       (If sent to a debt collector, (CA), it might  be beneficial to also include the blurb:

       ►  “This is a direct dispute of credit reporting. This is not a request for debt
              validation/verification  under FDCPA §809(b).”.
                  (don’t let them just simply sluff it off as a meaningless  DV letter)

“In compliance with FCRA §623(a)(8)(D), and enacting regulations published at  16 CFR § 660.4, this Notice of Direct dispute includes:

 “Identification of the specific information being disputed:
           (specify the account number, and the specific information that is disputed under

             that identifying account)

“Basis for the dispute:

            (how the reporting was inaccurate;    was any reporting in violation of any statutory or

             regulatory provisions?  account or express agreements?  CRA reporting gudelines? Account not

              yours? etc.)

“Supporting documentation:

            (all documents that support your dispute; it is recommended that you include,

             as part of your documentation, at least a copy of the portion only of your

             recent credit report showing their reporting of the disputed information was

              actually reported to your credit flle.  The implementing rule suggests a  showing

               that it appeared in your credit report)