How to handle old Capital One account

[sisyphuswins]

So, my BF has a closed Cap 1 account on all 3 of his reports.   They report variously as "closed" and "negative" but are not in collections.   He has never been contacted by a CA either.

The account was opened in 2/2007 with a credit line of $500.   He was in the army and went away for training, leaving his sister to cover his bills in October or November 2008.   His sister is not the most responsbile soul I suppose and she "forgot" to pay anything.   It also seems like she might have used the card, but that's beside the point--it's not like he's going to make her pay him back after all.   Anyway, in  Dec 2008, the card went 30 days past due.  He caught it back up when he returned home, then went away again and it went 120 days, at which point, upon his return, he just couldn't manage to pay all the compounded late fees and he wasn't terribly proactive then, so didn't call to make arrangements or to explain anything.   

Finally the balance, with all the late fees and penalties and interest, reached $2000 where it remains.   So, on his CR, it says he's using 400% of his line of credit.

What would be the best course of action regarding this account?  Clearly, it's out of SOL.  And it should fall off his report in December.   We've written to Cap 1 and, even when provided with the full account number, they have requested more information from him in order to "verify the account".   That indicates to me that they don't even have a record of it anymore, yet they continue to verify to the CRA's that it is reporting correctly (we have tried just disputing it with them, since Cap 1 can't seem to find it).  

He is vehemently opposed to paying them $2000 and he's pretty set against even paying $500, although if a pay for delete for the original amount is the best thing to do, I think I can convince him.    We need a car soon, and we might be potentially applying for a mortgage in the next 6 months (I have one now, but we'd be buying a house together).   I don't want it to negatively impact any of that.   Is December too far away to ask for an early deletion?

In an interesting turn of events, he just received a pre-approved offer in the mail from Cap 1.   I thought it would be in his best interest to accept it, but he's not very excited.

So, what to do about old account, and should he open a new card with them?

[RobertEG]

First, upon what are you basing the statement that it will become excluded from his credit report this December?

The scenario discusses a series of monthly delinquencies that began in 12/2008.

Each of those delinquencies has an exclusion date of no later than 7 years from its date of occurence.  DOFD only applies to charge-offs and collections.

The first deliquency of 12/2008 will become excluded in December, but subsequent delinquencies do not all become excluded based on exclusion of the first delinquency.

Additionally, asssuming the creditor has reported a charge-off, it would not have a DOFD of 12/2008.  The DOFD was reset when he paid the account back into good standing after that first string of derogs.  Thus, the DOFD would be later, and would only apply to the reporting of a charge-off nor collection, not monthly delinquencies.

Can you post the full payment history on the account?

[sisyphuswins]

I'm not sure if you meant to sound like you think I'm an idiot, but your tone is really hostile, and I'm not sure why you've zeroed in on the December removal of the account as the only thing to comment in, given that I've asked a couple of other questions.   I thought DOFD was the start of the clock for the 7 years.   Forgive me for being wrong.  That's why I'm asking a questions and I appreciate any help offered.   This is confusing stuff.

Here is what EQ has for payment history.   It only goes back to 2009, unfortunately:

              J          F           M          A          M          J          J          A          S           O          N           D

2015    CO     CO

 2014   CO     CO       CO       CO       CO      CO       CO       CO      CO        CO       CO        CO

2013    CO     CO       CO       CO       CO      CO        CO       CO      CO        CO      CO         CO

2012     CO     CO      CO       CO       CO       CO       CO       CO      CO        CO      CO         CO

2011     CO      CO      CO      CO       CO       CO        CO       CO      CO       CO      CO          CO

2010     CO      CO     CO      CO      CO        CO          CO     CO      CO       CO      CO          CO

2009     U         U        30       60        90        120         120     CO      CO      CO       CO         CO

Credit Utilization*400.00%

[SunriseEarth]

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@sisyphuswins wrote:

So, my BF has a closed Cap 1 account on all 3 of his reports.   They report variously as "closed" and "negative" but are not in collections.   He has never been contacted by a CA either.

The account was opened in 2/2007 with a credit line of $500.   He was in the army and went away for training, leaving his sister to cover his bills in October or November 2008.   His sister is not the most responsbile soul I suppose and she "forgot" to pay anything.   It also seems like she might have used the card, but that's beside the point--it's not like he's going to make her pay him back after all.   Anyway, in  Dec 2008, the card went 30 days past due.  He caught it back up when he returned home, then went away again and it went 120 days, at which point, upon his return, he just couldn't manage to pay all the compounded late fees and he wasn't terribly proactive then, so didn't call to make arrangements or to explain anything.   

Finally the balance, with all the late fees and penalties and interest, reached $2000 where it remains.   So, on his CR, it says he's using 400% of his line of credit.

What would be the best course of action regarding this account?  Clearly, it's out of SOL.  And it should fall off his report in December.   We've written to Cap 1 and, even when provided with the full account number, they have requested more information from him in order to "verify the account".   That indicates to me that they don't even have a record of it anymore, yet they continue to verify to the CRA's that it is reporting correctly (we have tried just disputing it with them, since Cap 1 can't seem to find it).  

He is vehemently opposed to paying them $2000 and he's pretty set against even paying $500, although if a pay for delete for the original amount is the best thing to do, I think I can convince him.    We need a car soon, and we might be potentially applying for a mortgage in the next 6 months (I have one now, but we'd be buying a house together).   I don't want it to negatively impact any of that.   Is December too far away to ask for an early deletion?

In an interesting turn of events, he just received a pre-approved offer in the mail from Cap 1.   I thought it would be in his best interest to accept it, but he's not very excited.

So, what to do about old account, and should he open a new card with them?

---

Positive credit might help, especially if he has limited revolving credit currently.  He should consider it.  

Have you contacted the Cap One EO?   If you haven't, do a Google search for "Capital One CEO email." Once you get that, write an email and explain his situation; they should get back to you within a few days.    Cap One won't typically do PFDs, but they may be willing to take his Army training into consideration.   Many military members of this board have reported Cap One being willing to help.

As for our tone, I'll just leave a general reminder that we encourage a Friendly, Supportive, and Respectful environment.   No one expects members to be experts; we're all here to learn, including this Moderator.    Also, some members may come across sounding a lot more "matter-of-fact" than intended.   It's the unfortunate part of being limited to only the written word.   But let's all continue to make a good experience for each other!

[gdale6]

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@sisyphuswins wrote:

I'm not sure if you meant to sound like you think I'm an idiot, but your tone is really hostile, and I'm not sure why you've zeroed in on the December removal of the account as the only thing to comment in, given that I've asked a couple of other questions.   I thought DOFD was the start of the clock for the 7 years.   Forgive me for being wrong.  That's why I'm asking a questions and I appreciate any help offered.   This is confusing stuff.

Here is what EQ has for payment history.   It only goes back to 2009, unfortunately:

              J          F           M          A          M          J          J          A          S           O          N           D

2015    CO     CO

 2014   CO     CO       CO       CO       CO      CO       CO       CO      CO        CO       CO        CO

2013    CO     CO       CO       CO       CO      CO        CO       CO      CO        CO      CO         CO

2012     CO     CO      CO       CO       CO       CO       CO       CO      CO        CO      CO         CO

2011     CO      CO      CO      CO       CO       CO        CO       CO      CO       CO      CO          CO

2010     CO      CO     CO      CO      CO        CO          CO     CO      CO       CO      CO          CO

2009     U         U        30       60        90        120         120     CO      CO      CO       CO         CO

Credit Utilization*400.00%

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Robert is not attacking you personally, everyone has a posting style and this is his style you can review this in other threads. Lets all try to get along with one another. From what you have posted here the DoFD would be March 2009. The length of time it can remain on file is 7.5 years from this date although the CRAs wil typically exclude them at the 7 year mark to stay within the law. If you have a CR that says it will be removed in Dec of this year IMO its a pretty generous date, you can ask for the early exclusion 6 months in advance from TU and 2-3 months out with the other 2 CRAs. If he is going to be apping for a mortgage this will definitely need to be settled prior to close, in fact they still may be able to find it in a mortgage pull if a full factual is pulled on a loan amount over 150K. This is being figured into his utilization so its going to be costing Fico points in that category as long as it on file as well. I might try a PFD since its in the last year on file its the only time Cap-1 may be open to such an offer.

[sisyphuswins]

Thanks for the suggestion.  I'll push him to accept the pre-approved offer then.   I thought it was a good thing, given all I've read on here.

I do have an email for the CEO--that's a really good idea to mention the army training and just beg for some sort of consideration.   If they could at least just accept the original amount and close this thing out, I'm willing to pay $500 to make it disappear.   Oddly, he had 2 other accounts on his reports that we got removed--they were his sister's and just got assigned to him because they share a first initial and the same last name and used to share an apartment.   We get calls from "investigators" looking for her, assuming she's his wife.    It's a good time .    It makes you wonder just how accurate any of this reporting is unless you dog them constantly.

Anyway, thank you and as for the last bit, I don't think I'm thin skinned, but the comment just struck me as a little insulting.   I do want to make clear that this forum is a godsend and I appreciate all the time and thought people put into responses.  The wealth of information is inspiring and humbling.   I'm truly grateful for all the help I've gotten here.

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@SunriseEarth wrote:

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Positive credit might help, especially if he has limited revolving credit currently.  He should consider it.  

Have you contacted the Cap One EO?   If you haven't, do a Google search for "Capital One CEO email." Once you get that, write an email and explain his situation; they should get back to you within a few days.    Cap One won't typically do PFDs, but they may be willing to take his Army training into consideration.   Many military members of this board have reported Cap One being willing to help.

As for our tone, I'll just leave a general reminder that we encourage a Friendly, Supportive, and Respectful environment.   No one expects members to be experts; we're all here to learn, including this Moderator.    Also, some members may come across sounding a lot more "matter-of-fact" than intended.   It's the unfortunate part of being limited to only the written word.   But let's all continue to make a good experience for each other!

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[sisyphuswins]

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@gdale6 wrote:

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Robert is not attacking you personally, everyone has a posting style and this is his style you can review this in other threads. Lets all try to get along with one another. From what you have posted here the DoFD would be March 2009. The length of time it can remain on file is 7.5 years from this date although the CRAs wil typically exclude them at the 7 year mark to stay within the law. If you have a CR that says it will be removed in Dec of this year IMO its a pretty generous date, you can ask for the early exclusion 6 months in advance from TU and 2-3 months out with the other 2 CRAs. If he is going to be apping for a mortgage this will definitely need to be settled prior to close, in fact they still may be able to find it in a mortgage pull if a full factual is pulled on a loan amount over 150K. This is being figured into his utilization so its going to be costing Fico points in that category as long as it on file as well. I might try a PFD since its in the last year on file its the only time Cap-1 may be open to such an offer.

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Sorry to be a little touchy--it just struck me wrong.    And left me very confused as what Robert seems to be saying is that the DoFD is constantly changing, while you're saying DoFD is really just the date of FIRST delinquency.    I do think it was earlier than March 2009---I might have an old report somewhere that goes back further.  What I posted is just  what they have on his report as of yesterday.   Earlier years have dropped off.     I'm going to dig through files today and see what else I can uncover before I frame the letter to the CEO.  

I'm curious as to their angle---they've been provided with the full account number, and yet we've received two letters saying that they need more information from us/him.   Initially, they wanted all sorts of identifying information.  This last letter wants him to provide the specific information on the credit report about the account.   Are they trying to trick him into something?    I'm getting the impression that DV is rather fraught with peril and you can get yourself into a sticky mess if you aren't careful.   We asked the CRA's to consider early deletion based on the first letter, which clearly said Cap 1 couldn't identify the account.    Instead, the CRA's reported it as "verified" and "customer disputes".    It's so frustrating--this seems like a complete contradiction.   

I just want it to go away the best way possible.   I'm not concerned so much with a record of it remaining on a full credit pull.   I had page after page of trouble on my report, including two satisfied judgments, when I applied for my mortgage 2 years ago, and I got a fantastic rate and not a lot of issue with beiing approved, even being self-employed.     This would be his only black mark at all, and if it's paid off, then it shouldn't cause much of a hiccup at all.    But I do realize if it's unresolved in some fashion, it will stop any process.   

Again, thanks for all the help.

[Anonymous]

I think they're just trying to zero in on the DOFD because that would impact how long you have left for it to remain on the report.

I have almost an identical situation. I opened a Cap One with a $500 CL and ended up with a DOFD in 5/2008. It's since aged off my reports (with the exception of EQ which said it should fall off next month) - and I was just as surprised when I was extended a new line of credit from them after 5 months with their secured card.

If the DOFD is coming up on 7 years and you have no need to apply for credit like a mortgage in this calendar year, might as well just let it age off. Of course they want you to pay it in full, but if it will disappear from his credit report without touching it, why not?

[Anonymous]

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@sisyphuswins wrote:

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@gdale6 wrote:

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Robert is not attacking you personally, everyone has a posting style and this is his style you can review this in other threads. Lets all try to get along with one another. From what you have posted here the DoFD would be March 2009. The length of time it can remain on file is 7.5 years from this date although the CRAs wil typically exclude them at the 7 year mark to stay within the law. If you have a CR that says it will be removed in Dec of this year IMO its a pretty generous date, you can ask for the early exclusion 6 months in advance from TU and 2-3 months out with the other 2 CRAs. If he is going to be apping for a mortgage this will definitely need to be settled prior to close, in fact they still may be able to find it in a mortgage pull if a full factual is pulled on a loan amount over 150K. This is being figured into his utilization so its going to be costing Fico points in that category as long as it on file as well. I might try a PFD since its in the last year on file its the only time Cap-1 may be open to such an offer.

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Sorry to be a little touchy--it just struck me wrong.    And left me very confused as what Robert seems to be saying is that the DoFD is constantly changing, while you're saying DoFD is really just the date of FIRST delinquency.    I do think it was earlier than March 2009---I might have an old report somewhere that goes back further.  What I posted is just  what they have on his report as of yesterday.   Earlier years have dropped off.     I'm going to dig through files today and see what else I can uncover before I frame the letter to the CEO.  

I'm curious as to their angle---they've been provided with the full account number, and yet we've received two letters saying that they need more information from us/him.   Initially, they wanted all sorts of identifying information.  This last letter wants him to provide the specific information on the credit report about the account.   Are they trying to trick him into something?    I'm getting the impression that DV is rather fraught with peril and you can get yourself into a sticky mess if you aren't careful.   We asked the CRA's to consider early deletion based on the first letter, which clearly said Cap 1 couldn't identify the account.    Instead, the CRA's reported it as "verified" and "customer disputes".    It's so frustrating--this seems like a complete contradiction.   

I just want it to go away the best way possible.   I'm not concerned so much with a record of it remaining on a full credit pull.   I had page after page of trouble on my report, including two satisfied judgments, when I applied for my mortgage 2 years ago, and I got a fantastic rate and not a lot of issue with beiing approved, even being self-employed.     This would be his only black mark at all, and if it's paid off, then it shouldn't cause much of a hiccup at all.    But I do realize if it's unresolved in some fashion, it will stop any process.   

Again, thanks for all the help.

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To help clarify - its the FIRST delinquency *immediately* preceeding the CO, with no intervening "current" status. So if you have a few lates, then bring the account back to good status for a while, then become late again, and never bring the account current again, the first few lates that were followed by a current status do not establish the DoFD, its the second series of lates that do so, and the CO will be removed "no later than" 7.5 years after the DoFD. The first series of late payments will be excluded individually at 7 years from the date they occurred.

[sisyphuswins]

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NormanFH wrote:

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To help clarify - its the FIRST delinquency *immediately* preceeding the CO, with no intervening "current" status. So if you have a few lates, then bring the account back to good status for a while, then become late again, and never bring the account current again, the first few lates that were followed by a current status do not establish the DoFD, its the second series of lates that do so, and the CO will be removed "no later than" 7.5 years after the DoFD. The first series of late payments will be excluded individually at 7 years from the date they occurred.

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Ahhhhhh, NOW it makes sense.    Okay, so March 2009 is his DoFD and the account will naturally drop off no later than Sept 2016, but we could potentially ask for GW a little sooner.     

I think all things considered the best plan is to write to the CEO, explain the training, and the entire situation and see if they'll accept hopefully no more than the original $500 debt to make it go away.