Credit Card Debt Settlement
Author: steve0742003
Joined: 30 Nov 2004
Posts: 1
Posted: Tue Nov 30, 2004 12:33 pm
Post subject: Credit card debt settlement. Is it possible?
I have a card debt of $18,000 on a single Capiyal One card. I have a good credit history and do not want to mess it up. Due to a divorce I am having a hard time keeping up. So far I have not had any late payments but I am barely keeping my head above water. The question I have is whether it is possible to negotiate a lesser payoff balance with the card company. I cant come up with $18,000, but I have family that will help. And if it is possible will they report me for any type of bad credit because of this.
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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2358
Location: Illinois
Posted: Tue Nov 30, 2004 12:53 pm
If you settle for less then yes the creditor can reflect this on the credit report. You can try for settled in full reporting, but technically they can report Settled for less... but it will show paid and remain 7 years from that paid date on the credit report. The score should not take much of a hit, cause you don't have late payment history dragging this account down. Another option, being that you are not late at this time, still current on everything... 1) contact the creditor and ask for hardship, they usually won't reduce the amount you are paying, but can reduce the interest rate they are charging you... thus making more of your money count. You can also contact a credit counseling company to take over just this one account for you... I think they can get the payments down... but you have to watch them like a hawk to insure that they don't make any costly mistakes to hurt you... like make sure they pay your creditor on your due date (if not then call your creditor to request that the due date be changed) also make sure that they prove to you, that the creditor accepted their negotiations. When you enter CCCS program it will be marked on the credit report that you have entered a wage earner plan... BUT at the completion of this program, the notation will come off of the credit report making the account positive again. So you have a few different options here you can try.
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Author: credithelp
Joined: 23 Aug 2004
Posts: 47
Posted: Tue Nov 30, 2004 1:18 pm
I've had to do a few settlements a few years ago after being out of work due to a car accident. To get the best reduction on a settlement they will wait until your account has been past due for a while. Out of all of my issuers, capital one was the only one who was willing to work with me. At the time my minimum payment was 3% of the balance. Since i had a few late payments my interest rate was something like 25%. The late fees pushed me over my limit which resulted in more fees. It was a cylce that kept on repeating itself. I talked with them and told them that i wanted to work things out and get the card back in a good status but the fees and payments were really making it hard. I also told them that i didnt want to file for bankruptcy but if it kept getting worse i would most likely be forced to, but i really didnt want to do that. It took a while but they finally agreed to waive the overlimit fees as long as i made the minimum payments, they reduced the minimum payment from 3% to 2%, and they also reduced my interest rate to 9.9% It may not sound like much but it made a huge difference with my ability to pay it back. If i was late on a payment everything would go back to the default rates. In the end, they made there money back with interest, i saved money and avoided having more negative activity added to the account. All my capital one account has is some late payments. None of my other creditors were willing to work with me. Cap1 was the only one. Everone i have dealt with arent really bothered by the settlements that i have done but i'm sure it lowers my score more than just the late payments would.
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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2358
Location: Illinois
Posted: Tue Nov 30, 2004 1:29 pm
That is great that you got them to accept 2.2% payment, I had figured that was a thing of the past with a recent article / source I had stumbled across while back... usually capital one is not easy to work with.. but also too they deal with sub prime more then any other creditor out there these days. The creditors are changing their policies on handling default accounts all the time now... I remember some one while back finding some inside information through google on Providian I think, was very interesting seeing that... will try to go back and see if I can find that and the other again.
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Author: credithelp
Joined: 23 Aug 2004
Posts: 47
Posted: Tue Nov 30, 2004 3:17 pm
capital one is supposed to be getting into more of the prime market. I guess that is why they brought out those primelock cards. Overall they have been fair to me. My biggest complaint is the way they report the credit limits. Some people have horrible experiences with them but i have been lucky so far.
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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2358
Location: Illinois
Posted: Tue Nov 30, 2004 4:13 pm
You are one of the minority on this respect... they have been overall hard to deal with, I remember a year back or so, when people were trying to utilize PBF site to get to them, but kept getting shut down. On the credit limit issue... I say forward the credit reporting agency a current copy of the statement received from the creditor. Just be sure to hight light the credit limit showing and explain to them like they are children clearly that you want that credit limit properly updated on the credit report.... that should get the job done... if not then I suggest pointing out the obvious to the FTC on there new dispute referral program and try to push the update through that way. I tried calling Capital One in the past and asking them to update from their end, but the rep was pretty rude to me, and no amount of arguing the points of how their reporting was affecting me, was going to make her reconsider - or transfer me to someone else to reconsider.
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Author: credithelp
Joined: 23 Aug 2004
Posts: 47
Posted: Tue Nov 30, 2004 8:19 pm
When i had to call them in the past, it seemed like it was easier to get things done. They have outsourced so much its hard to get a hold of someone who has the authority to help out these days.
View our latest credit card ratings!
Joined: 30 Nov 2004
Posts: 1
Posted: Tue Nov 30, 2004 12:33 pm
Post subject: Credit card debt settlement. Is it possible?
I have a card debt of $18,000 on a single Capiyal One card. I have a good credit history and do not want to mess it up. Due to a divorce I am having a hard time keeping up. So far I have not had any late payments but I am barely keeping my head above water. The question I have is whether it is possible to negotiate a lesser payoff balance with the card company. I cant come up with $18,000, but I have family that will help. And if it is possible will they report me for any type of bad credit because of this.
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2358
Location: Illinois
Posted: Tue Nov 30, 2004 12:53 pm
If you settle for less then yes the creditor can reflect this on the credit report. You can try for settled in full reporting, but technically they can report Settled for less... but it will show paid and remain 7 years from that paid date on the credit report. The score should not take much of a hit, cause you don't have late payment history dragging this account down. Another option, being that you are not late at this time, still current on everything... 1) contact the creditor and ask for hardship, they usually won't reduce the amount you are paying, but can reduce the interest rate they are charging you... thus making more of your money count. You can also contact a credit counseling company to take over just this one account for you... I think they can get the payments down... but you have to watch them like a hawk to insure that they don't make any costly mistakes to hurt you... like make sure they pay your creditor on your due date (if not then call your creditor to request that the due date be changed) also make sure that they prove to you, that the creditor accepted their negotiations. When you enter CCCS program it will be marked on the credit report that you have entered a wage earner plan... BUT at the completion of this program, the notation will come off of the credit report making the account positive again. So you have a few different options here you can try.
View our latest credit card ratings!
Author: credithelp
Joined: 23 Aug 2004
Posts: 47
Posted: Tue Nov 30, 2004 1:18 pm
I've had to do a few settlements a few years ago after being out of work due to a car accident. To get the best reduction on a settlement they will wait until your account has been past due for a while. Out of all of my issuers, capital one was the only one who was willing to work with me. At the time my minimum payment was 3% of the balance. Since i had a few late payments my interest rate was something like 25%. The late fees pushed me over my limit which resulted in more fees. It was a cylce that kept on repeating itself. I talked with them and told them that i wanted to work things out and get the card back in a good status but the fees and payments were really making it hard. I also told them that i didnt want to file for bankruptcy but if it kept getting worse i would most likely be forced to, but i really didnt want to do that. It took a while but they finally agreed to waive the overlimit fees as long as i made the minimum payments, they reduced the minimum payment from 3% to 2%, and they also reduced my interest rate to 9.9% It may not sound like much but it made a huge difference with my ability to pay it back. If i was late on a payment everything would go back to the default rates. In the end, they made there money back with interest, i saved money and avoided having more negative activity added to the account. All my capital one account has is some late payments. None of my other creditors were willing to work with me. Cap1 was the only one. Everone i have dealt with arent really bothered by the settlements that i have done but i'm sure it lowers my score more than just the late payments would.
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2358
Location: Illinois
Posted: Tue Nov 30, 2004 1:29 pm
That is great that you got them to accept 2.2% payment, I had figured that was a thing of the past with a recent article / source I had stumbled across while back... usually capital one is not easy to work with.. but also too they deal with sub prime more then any other creditor out there these days. The creditors are changing their policies on handling default accounts all the time now... I remember some one while back finding some inside information through google on Providian I think, was very interesting seeing that... will try to go back and see if I can find that and the other again.
View our latest credit card ratings!
Author: credithelp
Joined: 23 Aug 2004
Posts: 47
Posted: Tue Nov 30, 2004 3:17 pm
capital one is supposed to be getting into more of the prime market. I guess that is why they brought out those primelock cards. Overall they have been fair to me. My biggest complaint is the way they report the credit limits. Some people have horrible experiences with them but i have been lucky so far.
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2358
Location: Illinois
Posted: Tue Nov 30, 2004 4:13 pm
You are one of the minority on this respect... they have been overall hard to deal with, I remember a year back or so, when people were trying to utilize PBF site to get to them, but kept getting shut down. On the credit limit issue... I say forward the credit reporting agency a current copy of the statement received from the creditor. Just be sure to hight light the credit limit showing and explain to them like they are children clearly that you want that credit limit properly updated on the credit report.... that should get the job done... if not then I suggest pointing out the obvious to the FTC on there new dispute referral program and try to push the update through that way. I tried calling Capital One in the past and asking them to update from their end, but the rep was pretty rude to me, and no amount of arguing the points of how their reporting was affecting me, was going to make her reconsider - or transfer me to someone else to reconsider.
View our latest credit card ratings!
Author: credithelp
Joined: 23 Aug 2004
Posts: 47
Posted: Tue Nov 30, 2004 8:19 pm
When i had to call them in the past, it seemed like it was easier to get things done. They have outsourced so much its hard to get a hold of someone who has the authority to help out these days.
View our latest credit card ratings!
posted by CardRatings.com at 1:11 PM
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