Capital One CC Chargeoff advice

Anonymous · ‎03-07-2020

I have a recent CC charge off/ collections for a Capital One CC that's only been on for about 6 months. Capital One still owns the account and hasn't sold it (yet). I have the money saved to pay it in full, but I'm wondering what the best course of action is so that it has the least impact on my score. Phone rep already said they don't do PFD. So should I write letters begging for PFD, should I just pay it and write goodwill letters to try to get it off, etc?

Thanks in advance.

Anonymous · ‎03-07-2020

@Anonymous wrote:
I have a recent CC charge off/ collections for a Capital One CC that's only been on for about 6 months. Capital One still owns the account and hasn't sold it (yet). I have the money saved to pay it in full, but I'm wondering what the best course of action is so that it has the least impact on my score. Phone rep already said they don't do PFD. So should I write letters begging for PFD, should I just pay it and write goodwill letters to try to get it off, etc?
Thanks in advance.

My experience with chargeoffs (unfortunately) tells me that (a) the damage is done here (b) CapOne is stubborn and won't do a PFD and (c) paying may - and others can correct me if I am wrong - not significantly impact score, but will look slightly better under a manual review of your CR. Without knowing anything else, if I were in your situation, I would pay it off and look to your rebuild strategy if the point reduction from the chargeoff was seriously damaging. It might be worth one last try - something I would do - to call them back, get a senior manager or someone in credit review etc to see if PFD would work. Ask for this in writing, but don't be surprise if they miraculously agree, but opt not to put it in writing. Lastly, there are a few notable posts on these boards about CapOne that might give you additional guidance on how to move forward. Good luck to you!

silver_idle · ‎03-08-2020

@Anonymous wrote:
I have a recent CC charge off/ collections for a Capital One CC that's only been on for about 6 months. Capital One still owns the account and hasn't sold it (yet). I have the money saved to pay it in full, but I'm wondering what the best course of action is so that it has the least impact on my score. Phone rep already said they don't do PFD. So should I write letters begging for PFD, should I just pay it and write goodwill letters to try to get it off, etc?
Thanks in advance.

Sadly, they wont do PFD, but paying them off and bringing the balance to a $0 would reduce your utilization (since the accounts would be considered as maxed out while its CO), and stop it from updating each month which would bring your score up a bit (due to the utilization being brought down) and would improve over time. On top of that, if they still own it, paying it would be better since if they sold it to a collection agency, you would then have a $0 out CO and a collection on your report. If you dont want to pay in full you could see if you could settle since paying in full or settling would still being the account balance to $0 but would have different remarks, which creditors would see during a manual review, and probably have different affects on if you wish to try to get in the door with CapOne again in the future (eg paying in full would be better than settling in capone eyes since they would get their money back and likely give you another chance in the near future while settling might require you to wait it out before applying for any of their cards). I would suggest either PIF or settle and write good will letters in about 3 months after your credit report reports a $0 balance instead of fighting for a PFD and risk them selling it to a collection agency or worse, refering it to a law firm.

Remedios · ‎03-08-2020

Hi and welcome to the forums @Anonymous

Unfortunately, there wont be GW removal when it comes to CapOne charged off accounts. PFD is something you propose to collection agencies, not original lenders

All I can offer to this conversation is CapOne will engage in litigation, usually when CO is a year or two old to avoid bumping into SOL issues.

Because no state has SOL shorter than 3 years, they dont have to worry about claiming different jurisdiction this way should you move.

They are not shy about lawsuits, and their efforts to collect after the judgement are brutal.

I suggest you contact them, see if you can either set up payment arrangements or settle for less than owed. It's not ideal but it will keep situation from escalating.

Another fun tidbit about CapOne, they will sometimes approve a customer for one card while suing them over another card. I really wouldn't mess with CapOne or Discover COs.

Good luck and I hope you get this resolved soon

Anonymous · ‎03-10-2020

I had a credit card about $1k that I owed Cap 1. It had not gone to collections they seem to be slow with sending to collections. I just started making payments to keep them from sending it to collections because it was reporting on my credit report as late payments month after month. After I paid it a few months later maybe 2 or 3 they approved me for a car loan and credit card. I was just out of Chpt 13 too.

@Anonymous wrote:
I have a recent CC charge off/ collections for a Capital One CC that's only been on for about 6 months. Capital One still owns the account and hasn't sold it (yet). I have the money saved to pay it in full, but I'm wondering what the best course of action is so that it has the least impact on my score. Phone rep already said they don't do PFD. So should I write letters begging for PFD, should I just pay it and write goodwill letters to try to get it off, etc?
Thanks in advance.

Anonymous · ‎03-10-2020

What was spoken in the responses is true. I had a CO with Cap1 and they definitely did move to sue within a year or two. It was even for a small amount and that did not deter them at all with regards in recouping it. With fees and court costs, it was very expensive. My wages were garnished (young and dumb and did not go to court). It was then a judgment on my CR which really sucks. It did fall off well before the 7 year reporting mark (thankfully!), but I couldn't tell you when exactly, as at the time I let all my credit cares go down the drain. I would definitely find resolution with them before they go from step 1 to step 3. Mine never went to a CA. Now, I have an unsecured rebuilding card with them, so don't worry too much about that, just get them handled!