A little less than a year ago, i stopped paying my credit card. I know, I'm a bad bad person but I was a stupid college student. The amount I had on the card was only 600 bucks. It eventually was turned into collections and now the collection agency is telling me i can pay around 300 and it be settled. They want my checking account info but im leary to give it to them without something in writing. They say they need me to pay by Saturday, or it will be going back to Capital One and will accrue tons of interest and fees. DO you think they are bluffing? I am positive they are affiliated with Capital One. Ihave done my research. I'm wondering if I should just let it go back to Capital One and try to work something out with them or trust them and make the settlement. Please help! Any advice would be appreciated :)
2007-04-19 14:52:28 · 8 answers · asked by Halee 1 in Business & Finance ➔ Credit
Don't let them pressure you into feeling like you have to meet a time line.
Whether they keep it or if it goes back to Cap One, it will still continue to accrue interest and possibly fees.
And, as you mentioned, they "are" probably bluffing about returning it to Cap One.
You were wise to be leery in not giving out your checking info, they may have run through your checking account after receiving the checking account numbers.
If you ever make a deal with them - pay with a cashiers check or money order. Never pay by personal check.
(it is also against the FDCPA for them to try and coerce you into paying by phone like they had)
If they had contacted you by phone and it was the first contact from them - by law, they MUST send you something in writing within 5 days after that phone contact.
The first thing you should do is send them a debt validation letter. Among other things, request that they prove the true amount of the debt they are trying to collect (that the amount had not been illegally inflated), that they are licensed and/or bonded in your state to collect - if your state requires it and proof that they have a legal right to collect that debt.
Do not sign the letter, print your initials or type your name.
Send all letters to them certified mail return receipt.
Order "paid" copies of your credit reports from each CRA to see if they are reporting. If they are, see if they are reporting correctly. If they are not reporting correctly, file disputes with the CRA's.
Once they properly validate, send them a pay for delete letter.
Request that they will accept a portion of the debt as "payment in full" and that they will delete anything they have placed on your report upon payment.
Get it all in writing - if you have nothing in writing, they can do pretty much whatever they feel like and you cannot prove otherwise.
Quit speaking to them on the phone.
edited to add:
Cap One rarely sells charged off accounts - they usually just assign the debts to collection agencies.
With that said, yes a person could "try" to make a deal with Cap One to pay them instead of the collector. It's always better to deal with the original creditor if a person can - but, once an account is charged off, Cap One is very hard to deal with.
But it could still be worth a try.
If they refuse to pull the account back from the collection agency, and even if someone sends the payment to Cap One, the collection agency will still get their share of the money and the negative trade line from the collection agency will remain on a persons credit reports.
2007-04-19 15:49:05 · answer #1 · answered by echo 7 · 0⤊ 0⤋
I have a Capital One card that is in collections too and I would not give them you checking account number or send the payment directly to the collection agency. Personally, I would go get a money order then mail the payment to Capital One. Even if the account is in collections and you send a payment directly to Capital One it will still be applied to your account. I would call Capital One first to make sure that the payment you make will settle to account. Good Luck, they can be assholes!
2007-04-19 22:12:26 · answer #2 · answered by Abby 2 · 0⤊ 0⤋
First off, a payment in collections can be detrimental to your credit so MAKE SURE if you decide to settle for $300 you have signed documentation preventing them from reporting the previous delinquencies. Assuming they put the $300 settlement in writing you are all set. If they contacted you via phone and will not put it into writing DO NOT give them your info.
2007-04-19 22:01:54 · answer #3 · answered by fastcarceo25 3 · 1⤊ 0⤋
DO NOT give them your checking account number. Once you do, they will take what they want from your account inspite of their offer to "settle" for $300.
I would contact Capitol One right now and offer to pay if they will take 50¢ on the dollar. Don't deal with the collection agency.
2007-04-19 21:59:12 · answer #4 · answered by united9198 7 · 1⤊ 0⤋
It sounds like since it has already gone to collection, that it has impacted your credit report. many times...once a bill enters collection only the agency can take payments. Pay it. Or try a payment plan, ask if they would be willing to see a hundred today..In any case whether in full or in part (I suggest you pay in full) you will want to ask them for a confirmation of your payment to be sent in the mail with your current balance if any.
I speak from experience. when you are ready to improve your credit you can ask more questions like how to go about it.
the key with collectors (from your creditors or collection agencies) is to stay in contact with them, do not avoid them...as simple as this may be... it is not...and will offer much more agony than it's worth.
If you know they are affiliated with capital one, you ought to cut your losses and pay as much to them as you can afford (again I suggest you pay in full). you sound young and there is time to recover.
2007-04-19 22:07:40 · answer #5 · answered by tharedhead ((debajo del ombú)) 5 · 0⤊ 0⤋
Send them a check or money order made out to "collection agency in trust" make sure you put your account number on it.
If you do not have the money, send them a check or money order for whatever you can, with some other post dated checks to total $300.00. Ensure that you have a paper trail. Never give out banking information!!!
Good Luck
2007-04-19 22:02:54 · answer #6 · answered by Minton quest 4 · 0⤊ 0⤋
Take the offer and get your credit back on track. If you did the research and are sure it is legit, go for it! It will get your credit standing better sooner and save you ALOT of money!
2007-04-19 21:59:20 · answer #7 · answered by autumprncss 2 · 0⤊ 1⤋
yo ear me now, dis b wat u do, u gatta b hookin wit ur main bank. yo dis not only b coo 4 peace of mind but yo dis is loyalty, when u b ridein in da street with yo ak straped all yo got is loyalty, so yo u b liking dis peril of da street wisdom u gonna holla back allight
2007-04-19 22:00:44 · answer #8 · answered by Lee H 2 · 1⤊ 2⤋