Hello,
I have 2 charge offs from Capital One. Within 3 months of both charged off accounts, they were both sold to Portfolio Recovery. I received a letter from Capital One that they would no longer have anything related to said accounts. Then I receive notices every other month or so saying possible pre-legal determination. One account has a balance of $1,800. The other has a blance of $3,200.
My question to the forum is: thoughts on why some accounts stay within internal collections with Capital One (sometimes for years) in reading others posts and why do some accounts (like mine) get immediately sold to outside agencies?
I should mention that both of my accounts were approximately 4 yrs old and had been in good standing throughout the years until the fall out at the end, which led to charge offs due to unforeseen financial issues when I had an unexpected surgery and was off work for nearly 6 months. I didn't have an emergency fund or enough savings to handle this at the time. Both charge offs occurred in March 2018.
I plan to pay both accounts in the near future. Just saving up to take care of each of them in one payment as I personally don't like to have recurring payments with old credit accounts. Hopefully Portfolio doesn't step up their efforts and file suit against me in the meantime.
In the past, I have always paid all my other derogatory accounts in full, I have never settled an account for less because personally, I feel it is the right thing to do as I did use services or bought tangibles with the credit that had been extended to me.
Its a science on how Cap1 operates at times. The good part is they're with Portfolio. If you can call and set up some kind of payment arraingement or settlement offer. They will delete the collections off your reports like they never happened. Its their policy. So dont wait too long. get something going so it doesnt come down to courts and such. Good Luck!
As to your original question as to why Cap1 retains some accounts inhouse versus selling them off, I have had a similar bewildering experience so I don't have an answer.
In my case I had a total of (4) Cap1 accounts that were Charged Off back in 2014 during my own financial struggles.
I'll use round numbers to keep it easy
$1000 account was sold to PRA
$2000 and $4000 accounts were kept internal and they used Texas law firm Moss Law to sue and get a judgement
$6000 account they never acted upon other than reporting monthly deliquent up through December 2017
Having both accounts sold to PRA is a good thing. You can likely settle for 50% of the balance and PRA will remove the tradeline completely from your report once you paid the settlement amount.
I settled with PRA at about 50%, settled for about the same on the for the Judgement accounts which now report 0 balance, and given that the $6000 account was past SOL when I called Cap1 to attempt to pay it they would not/could not accept any payment as they had no means to apply it to the account given that they were not going to pursue it. In that case they deleted the tradeline completely.
Thank you for the responses/thoughts here. I was just curious because there are many posts in the forum where Capital One has sold (seemingly) low accounts, say $1,000 and then kept others internal for the same amount and then large amounts, say $5 K or more where, too, they have kept them internal and also some have mentioned that they have been sold off. No patterns to identify rhyme or reason.
@ItsCASHual wrote:Thank you for the responses/thoughts here. I was just curious because there are many posts in the forum where Capital One has sold (seemingly) low accounts, say $1,000 and then kept others internal for the same amount and then large amounts, say $5 K or more where, too, they have kept them internal and also some have mentioned that they have been sold off. No patterns to identify rhyme or reason.
They are a head scratcher at times. Just like Disco and CLI's. No one knows.......