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Capital One Charge Off

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Anonymous
Not applicable

Capital One Charge Off

Hi All! I am new to the forum and trying to find ways to repair my credit. 

 

In 2007 I had a CapOne acct that went into collections after not paying for more than 4 months. It then went to collection agency and I started paying them slowly. I was very young at the time, and not knowing what I was doing, I entrusted my now mother-in-law to help me. So she called the CA and to close the acct and pay it in full, so i thought. Fast forward 4 years later and I'm looking to buy a house, so for the first time I check my credit report and my CapOne is showing the following:

 


Status: Paid in settlement. $745 written off.
Status Details: This account is scheduled to continue on record until Mar 2014.


Date Opened:
12/2005
Reported Since:
12/2005
Date of Status:
03/2008
Last Reported:
03/2008
Type:
Credit card
Terms:
NA
Monthly Payment:
$0
Responsibility:
Individual

Credit Limit/Original Amount:
$500
High Balance:
$924
Recent Balance:
NA
Recent Payment:
NA

Creditor's Statement: Account legally paid in full for less than full balance.

 

 

So I no idea my MIL settled for less than the full balance. I called CapOne, they said the balance was settled less $75! Why didn't my MIL just pay the $75? I paid her back for it anyways! Would it be a good idea to just send them the $75 and ask them to change the status to PIF? Or do I have to send GW letters to ask them to remove this account? Any help would be appreciated!

 


Message 1 of 14
13 REPLIES 13
llecs
Moderator Emeritus

Re: Capital One Charge Off

I'd send a GW asking them to either remove the account if your average age of accounts is older than 6 years, or I'd send a GW letter asking them to remove any lates and the settlement comment.

 

Per FICO scoring, your credit is no worse than if she had paid in full. It'll still report as a paid charge-off. FICO looks at charge-off accounts and settled accounts as equally not good.

 

Message 2 of 14
Anonymous
Not applicable

Re: Capital One Charge Off

so if I send them a goodwill letter, should i also send them the balance of $75 or does that not matter at this point anymore?

Message 3 of 14
llecs
Moderator Emeritus

Re: Capital One Charge Off

The $75 no longer matters.

Message 4 of 14
Anonymous
Not applicable

Re: Capital One Charge Off

i would send gw letter. i emailed them last week and got a response the same day saying they would delete from all 3 credit reports. i checked this morning and its already gone. so its worth a shot

Message 5 of 14
GoodCredBen
Valued Contributor

Re: Capital One Charge Off

I sent a GW letter to the CEO of Capital one, and i got a call not 1 hour later from him....

 

though he told me that it is against company policy to remove the lines, even though they were paid in full .... 

 

He was a nice guy and i was surprised to speak with him directly so soon! but....

 

but even that being said, that makes me VERY sad :'( 

My credit journey has completed. I am currently sitting at 800+ across the board.

I started my journey here years ago, and thanks to MyFico, it really is possible.
Message 6 of 14
Anonymous
Not applicable

Re: Capital One Charge Off

Rachael1 can you message me the email you used?

Message 7 of 14
RobertEG
Legendary Contributor

Re: Capital One Charge Off

The current status of any account that has been settled (i.e., the payment was considered by the creditor to satisfy the balance on the debt. regardless of whether it was paid in full for "settled" for less) is the same.  Paid.  So the account status is already (or should be) reported as simply "Paid."

 

When a debt is settled for less than the full amount, that is recorded in your credit file by means of a separate Special Comment code reported by the creditor.

The main impact of such a comment is that it is a black mark when viewed by parties who pull your CR.  If you want it removed, the correct request is for deletion of the special comment.

 

But that does litttle or nothing for your credit score.  The prior reportings by the OC of the monthly delinquencies and any charge-off still remain, as does the reporting by the debt collector of their collection.  Deletion of those items requries a more comprehensive good-will request...... deletion of those reportings, and not just of the special comment of "settled for less."  Separate good-will letters would be required for both the OC and the debt collector, as neither can delete the reportings made by the other.

 

The hitch is that such deletions are contrary to their credit reporting agreements with the CRAs,  It is an express policy of the CRAs, and incorporated into their credit reporting agreements, that furnishers of information should NOT delete any prior, accurate reporting based on subsequent payment of the debt.

 

I recommend that you continue your GW efforts, but be precise in asking for what you want deleted.

 

Message 8 of 14
pizzadude
Credit Mentor

Re: Capital One Charge Off

 

 

----->  i emailed them last week and got a response the same day saying they would delete from all 3 credit reports.

 

Would you mind sharing the email address you used ?  Can you please PM me ?   Thanks !!

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 9 of 14
Anonymous
Not applicable

Re: Capital One Charge Off

Hello! This was such great news! Can you please tell me what email to use so I can try too?

Message 10 of 14
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