There's no basis on a factual case but a good credit lawyer will involve them nonetheless for continuing to give out incomplete or inaccurate information after the consumer requested corrections. I would probably add an FTC and CFPB complaint in the mix early-on against both the CRAs and Capital One.
The consumer in this case is harmed because an improperly reported charge-off can increase the risk of adverse action. Capital One improperly reported it, yes, but the CRAs need to be given notice that Capital One incorrectly reported it. Give them notice with a dispute (of facts) and let them know full well that if they continue to report incorrect and inaccurate information that is used by other parties, they're harming you.
It's feasible one could sue the CRAs for actual damages, too. That's up to the attorney to decide, of course. A well written dispute can probably get a bland boilerplate denial response in writing, and if they're not responsible in their incorrect/inaccurate reporting and outright deny the dispute, there may even be malicious or willful conduct that can be proven by a good attorney. Bad conduct like that allows one to recover punitive damages.
It's all about doing it properly, step by step, in writing, CMRRR, demanding a mailed response, and cataloging each and every step. Lawsuits suck, I got sued by a creditor many years ago and the only reason I won (and received punitive damages in a settlement before the judge ruled) was because I had endless evidence against the creditor. I found out a few years ago from a different lawyer that I should have demanded 6 figures in their settlement, not 5. But I did win, and my paperwork is what convinced the prosecuting attorneys suing me to settle before going to trial. This creditor actually stole my identity while trying to "track me down" and I spent hundreds of hours cataloging proof.
If you can prove willful misconduct or malicious intent (if VW promised to pay by a certain date but didn't, that may be malicious intent), someone's going to pay out some big money. I'd be more curious about the time frame, though.
My gut instinct tells me that OP probably got the settlement offer, stopped paying on the loan, and rightfully has a chargeoff against them which no dispute or lawsuit will remove. But without seeing the timing of it all, it's impossible to say. Maybe OP did in fact get the payment settlement terms and VW or Capital One screwed the pooch on it. If so, I'd demand a punitive award settlement based on actual damages (if there's documented evidence of any).
