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Capital one shows balance due after settlement

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Capital one shows balance due after settlement

Recently I had a settlement with s capital one. I owed 2950, we agreed to settle account for a payment of 1850.
I paid settlement amount in full same day.

Now credit reports shows capital one account as "settler and paid in full" AND at the same time "current Ballance is 1235.53"
Does not make any sense to me. How it could be settled and paid and current Ballance at the same time.

I called capital one , rep explained that's the way they doing it all the time. And current Ballance will be on my report till voluntary paid, or till 7 years expired.

What should I do ? Call again? Mail a letter to capital one ? Contact credit bureaus?
Message 1 of 3
2 REPLIES 2
Moderator

Re: Capital one shows balance due after settlement


@Liss78 wrote:
Recently I had a settlement with s capital one. I owed 2950, we agreed to settle account for a payment of 1850.
I paid settlement amount in full same day.

Now credit reports shows capital one account as "settler and paid in full" AND at the same time "current Ballance is 1235.53"
Does not make any sense to me. How it could be settled and paid and current Ballance at the same time.

I called capital one , rep explained that's the way they doing it all the time. And current Ballance will be on my report till voluntary paid, or till 7 years expired.

What should I do ? Call again? Mail a letter to capital one ? Contact credit bureaus?

Horsepucky it will remain on, it would be illegal to do so as accurate info must be reported if they report at all. Cap-1 initially updates to whatever the balance is after settlement at the next report date, then the next month it will update to 0 balance with comments "settled for less than full balance" or something like this. CSR doenst know what he is talking about, most dont.

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Message 2 of 3
Contributor

Re: Capital one shows balance due after settlement

It should update to zero balance with notation settled for less but it will take some time. 

 

I have (2) accounts that I have recently taken care of and I can share my experiences from that so you can see the timeline....

 

Settlement payment received by May 28, 2019.

 

June 13th report date (updated around 2 weeks June 27-30) across EX first, TU second, EQ third to reflect payment but remaining balance still showing.

 

June 24th Letter From Cap1, one for each account, received roughly June 27th - acknowledging reciept of payment, that the accounts have been settled to zero, and that each reporting agency will be notified accordingly but the update may take 60 days to reflect.

 

July 17th report date (TU updated July 27, EQ updated July 30) to zero balance on both accounts with notation as expected for settled for less.

 

As of August 21, Experian is still yet to update what appears to have been a July 17th reporting date by Cap1 based on the other two CRAs. 

Each account shows the last update date of June 13th and remaining balances unpaid.

 

I have a letter drafted to Cap1 dated August 24th to highlight that Experian has not yet updated per the 60 days from June 24th with a request for Capital One to resubmit reporting to them which I plan to mail this week if I do not see an update to zero for Experian report.

 

I am going to go this route first rather than disputing with Experian directly as I have heard horror stories regarding disputing CO accounts. 

 

So bottom line, depending on when you made the payment, it will ultimately reflect a zero balance but it WILL take some time to be updated across the CRAs.

 

You should also get a letter from Cap1 as proof that the account has been settled. You can see it took almost 30 days from the date they cashed my payment to send.

 

 

 

 

Message 3 of 3
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