Settling With Capital One.

[Anonymous]

Hi All,

I am new to this forum. Just checking to see if anyone here had any recent experience doing a lump sum settlement with Capital One? I currently owe about $18K on a capital one credit card and about 5 months behind on my payments. I called them last week to see if they would settle and they told me that they did not have any current settlement offer for me. Please share your experience if you had recently settled with Capital One and please let me know how did you go about go about settling and how much were you able to settle for. Thank you so much.

[Anonymous]

You gave very little info about your situation but I can assure you settlement offers are sure to come eventually from Cap1.

[iced]

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@Anonymous wrote:

Hi All,

I am new to this forum. Just checking to see if anyone here had any recent experience doing a lump sum settlement with Capital One? I currently owe about $18K on a capital one credit card and about 5 months behind on my payments. I called them last week to see if they would settle and they told me that they did not have any current settlement offer for me. Please share your experience if you had recently settled with Capital One and please let me know how did you go about go about settling and how much were you able to settle for. Thank you so much.

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The only experience I have with them is that they wouldn’t negotiate or settle, at least for me. They wouldn’t remove lates and they wouldn’t accept anything less than what I owed. So I paid the full balance and now I wait for the lates to eventually fall off my report. I did the crime, so I did the time.

[Anonymous]

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@iced wrote:

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@Anonymous wrote:

Hi All,

I am new to this forum. Just checking to see if anyone here had any recent experience doing a lump sum settlement with Capital One? I currently owe about $18K on a capital one credit card and about 5 months behind on my payments. I called them last week to see if they would settle and they told me that they did not have any current settlement offer for me. Please share your experience if you had recently settled with Capital One and please let me know how did you go about go about settling and how much were you able to settle for. Thank you so much.

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The only experience I have with them is that they wouldn’t negotiate or settle, at least for me. They wouldn’t remove lates and they wouldn’t accept anything less than what I owed. So I paid the full balance and now I wait for the lates to eventually fall off my report. I did the crime, so I did the time.

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I shoulda mentioned my experience with Cap1's settlement offers was about 20'ish years ago.  Perhaps they changed this policy.

[CatOfSpades]

I had to settle with them about 4 years ago. The balance was about 5500. They did a charge off after 6 months of being later, and after I had saved some money, I unblocked their numbers around month 9 or 10, and they offered to settle for around 4300. I didn't have that, so they said they could go down to 3800. It's my unfortunate experience that companies won't offer to settle until around 6 months late. They tried to get me on a payment plan, but I couldn't afford those payments either. I don't know if they would have offered to settle sooner if I had talked to them. In hindsight, I wish I had known more about how late payments work so I could have found a way to start making payments again before they charged the cards off. Of course, when you're broke, you're broke. But my credit score took a very bad hit, and my insurance rates went up so high I had to change companies. Luckily, I found a company that cared more about my driving history than my credit score.

Your mileage may vary, of course, but you might have some kind of offer soon.

[wa3more]

see if your agreement has a arbitration clause, hopefully JAMS. Send them a letter if it does electing arbitration.

It might give you leverage for better settlement.

[Anonymous]

Hi AirTroop.

Thank you so much for replying. So today I called again and they are offering a settlement of $12,600 where my original balance is close to $19.000. I am apparently about 45 days away from getting charged off. Unfortunately I have no way of paying $12,600. I heard that after the charge off, Cap One they keep the account with their internal recovery department for 90 days before handing it over to a third party collections agency. Have you had any recent experience settling with them? You think I might have a lower settlement offer after the charge off? Please let me know. Thank you.

[Anonymous]

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@Anonymous wrote:

Hi AirTroop.

Thank you so much for replying. So today I called again and they are offering a settlement of $12,600 where my original balance is close to $19.000. I am apparently about 45 days away from getting charged off. Unfortunately I have no way of paying $12,600. I heard that after the charge off, Cap One they keep the account with their internal recovery department for 90 days before handing it over to a third party collections agency. Have you had any recent experience settling with them? You think I might have a lower settlement offer after the charge off? Please let me know. Thank you.

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No, fortunately I haven't had any recent experience with Cap1.  I do know this much though - wait and don't pay a dime if you've heard they keep the account in internal recovery for 90 days because any offer from there on out will be less and less of the original balance...as long as you know who has the power at this point - that's YOU.  You can literally tell them, "Look, I know you're about to sell this account for pennies on the dollar.  I will put more money in your pockets if you'll just consider my final offer (40% is a great starting point) and we'll just call it a draw."  Actually, I'd take it to writing ONLY before any of the aforementioned and tell them you've only got the ability to BORROW $7000 (remember, you give them some wiggle room - 40% is around $7600 - to bargain with) and report it "Paid As Agreed" on your report.  There are plenty of threads here to help you out with that part of your plan.

IMPORTANT NOTE: Maybe someone with more knowledge can chime in on whether or not charging off and selling the debt for 40+or-% to a 3rd party nets Cap1 some more beneficial tax advantages versus simply settling for 40%'ish with the consumer???)

Good luck.  Am interested in knowing the outcome.

[RobertEG]

If you are currrently 5 months behind, you are approaching the mandatory charge-off requirements for revolving debt, which is at 180 days.

You are thus in immediate peril of having a charge-off added to your credit report, and then possibly a collection.

After reporting of either, your score will further suffer, and you will also face the dreaded CRA policy instructing furnishers not to delete reporting of prior derogs based on payment of the debt.

Perhaps they may offer a payment plan, permitting you to stop a charge-off or collection without need to immediately discharge the debt?

[Anonymous]

Try to talk to them and see what you can pay to avoid a charge off!
I have recently had 2 cap 1 charge offs and i can tell you that they dont offer settlements.
I had to wait for the account to go to a CA and then negotiate with them.
They will start with 85% but can get down to 50%
Also correct me if im wrong but once the account is charged off they can take you to court for the balance.

I was stupid and decided to let the accounts charge off and settle later rather than try to set up a payment plan and keep account active.

What is the limit on the card? If it is maxed out it will continue to report as maxed out of even over limit if they add interest to it until you pay it off and that will keep hurting your score!