Negotating Cap1 settlement?

[commondenominator]

Hello everyone,

This is my first post so please excuse any ignorance of mine. I looked through the forum and could not find any recent posts regarding this topic.

I have a Cap 1 card that recently got charged off but is still being dealt with directly by Cap 1. The total balance is $1100. When I logged into the app today there was an offer to pay 55% and have the remaining balance written off.

Is this a good deal or should I negotiate a lower amount? Has anyone had any recent success negotating a settlement with Cap 1?

Thank you in advance,

-CD

[GZG]

how old is the debt and can you still be sued for it? 

that's how we'd be able to tell you if it's a good deal or not

but honestly, assuming you have some money now and you're not giving them live/death rent money or something, just settle it to be done with it and move on with getting the rest of your debts settled and your credit better for the future 

[commondenominator]

Thank you for the reply.

The debt is about a year old, charged off in the last 30 days, with a settlement offer received this week. Normally, I couldn't make an offer as I live paycheck to paycheck. However, an unexpected event provided enough to cover it, and I want to make the best decision. Ideally, I'd settle for less and use the remainder for another debt, but I’m unsure what to expect with Cap 1 settlements.

Let me know if any of this information changes your answer at all.

[ProfesorAlex]

Not sure if it's Capitalone anymore?? I thought when a company charges it off it's off their books and sold to a debt collector but now that I think about it Mission Lane holds onto theirs for a long time after charge-off and makes offers to settle for less.    I'd probably take it and ask if they can delete.  They'll likely ay no to delete but might not fight a FICO correction request.  It's a good offer. Wait longer and a dbet buyer will settle for maybe 30%.  ALSO know your states Statute of limitations for collection AND get EVERYTHING in writing.  

[Penelope91]

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@ProfesorAlex wrote:

Not sure if it's Capitalone anymore?? I thought when a company charges it off it's off their books and sold to a debt collector but now that I think about it Mission Lane holds onto theirs for a long time after charge-off and makes offers to settle for less.    I'd probably take it and ask if they can delete.  They'll likely ay no to delete but might not fight a FICO correction request.  It's a good offer. Wait longer and a dbet buyer will settle for maybe 30%.  ALSO know your states Statute of limitations for collection AND get EVERYTHING in writing.  

I settled my Cap1 charge off before. If they reach out with an offer, that means that they still have possession. Is better to settle with Cap1 directly than wait for a collection agency to get it, because then the OP will have a chargeoff AND a collection on their reports. Then they'll have to fight to get the collection removed but the chargeoff will still remain. I made 23 months of payments and they updated my reports to show Paid-Settled for Less. The confirmation in writing will be all of the emails that state the settlement offers and their acceptance of it. Cap1 also will not delete. They are one of the hardest companies to get a deletion from; however, they're very forgiving and have no qualms with offering new credit a few months into the payments.

[Penelope91]

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@commondenominator wrote:

Hello everyone,

This is my first post so please excuse any ignorance of mine. I looked through the forum and could not find any recent posts regarding this topic.

I have a Cap 1 card that recently got charged off but is still being dealt with directly by Cap 1. The total balance is $1100. When I logged into the app today there was an offer to pay 55% and have the remaining balance written off.

Is this a good deal or should I negotiate a lower amount? Has anyone had any recent success negotating a settlement with Cap 1?

Thank you in advance,

-CD

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In my settlement email from Cap1, I clicked the link and there was an option to enter in my own offer amount. They offered me 55% and I countered with 50%. They accepted and I paid it down in monthly payments.

[vntrsc]

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@ProfesorAlex wrote:

Not sure if it's Capitalone anymore?? I thought when a company charges it off it's off their books and sold to a debt collector but now that I think about it Mission Lane holds onto theirs for a long time after charge-off and makes offers to settle for less.    I'd probably take it and ask if they can delete.  They'll likely ay no to delete but might not fight a FICO correction request.  It's a good offer. Wait longer and a dbet buyer will settle for maybe 30%.  ALSO know your states Statute of limitations for collection AND get EVERYTHING in writing.  

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If Cap One didn't own the account, it would not be able to accept payment.  When a creditor sells an account, it no longer has anything to do with it, and the balance is owed to the new owner.

Another way to determine if an account has been sold is to check one's credit report.  When an account is sold, the original creditor must update its reporting to reflect a $0 balance owed.  Again, that's because the balance is owed to the new owner.

If the original creditor shows a balance still owed, that means it still owns the account and can accept payment.

[Realist]

Not a bad call considering the debt amount.   Settling quickly mitigates the damage in a case like this.

In cases where the debt is significantly more, or where more than one loan were affected, it could make sense to pursue a lessor percentage.  But that also adds in other complications, in exchange for opportunity.

And as you have just seen, there are some lenders that will never get rid of the debt, no matter how long you hold out.  But, with enough time, they will settle for peanuts.  That's part of the complications portion.  To acquire those pennies on the dollar settlement amount, you lose in other ways.