Capitol one sent to collections - Please help!

For just about anything you want to get off your chest about credit cards.
3 posts
BrandiRo
 
Posts: 1
Joined: Fri Jan 29, 2016 10:22 pm

Capitol one sent to collections - Please help!

Postby BrandiRo » Fri Jan 29, 2016 10:25 pm

I had a Capitol one credit card I fell behind on and were threatening to send to collections, I finally had enough money to start making payments and within three
weeks of it off. I made an $80 payment and then four days later they sent it to collections. I got in contact with the collection agency (alliance one) and expressed that I would be paying the debt in full on the 19th of february. I then asked if I paid it off, since it is such a short amount of time if they would not put it on my credit report. They told me that they do not do the filing with the credit bureaus and that I should call Capitol one. I called Capitol one and they said when I paid it in full the collection agency would notify them and then they would update it as "paid" or whatever on my credit report. I want this DELETED altogether. After all, three weeks is really short. So my question is, is Capitol one the people that really do have the power to remove it completely from my credit report it is that something I have to contact the credit bureaus about afterwards? Is there a way I can convince Capitol one to agree to delete it IN WRITING of course and will they be able to do this. Also, if they refuse, can I contact all three bureaus and have them delete it? Please help! I am trying to purchase a house soon and I can't have this negatively impacting my score. Also, the credit charge off isn't even posted on my credit report yet, how long does it take to post in the first place? Thankyou in advance!


Kevin86475391
Centurion Member
Centurion Member
 
Posts: 237
Joined: Wed Feb 18, 2015 9:04 pm
Location: Texas

Re: Capitol one sent to collections - Please help!

Postby Kevin86475391 » Mon Feb 01, 2016 12:33 pm

I'm sorry to hear you're going through this. It must be incredibly frustrating, especially since you were so close to having it all taken care of when this happened.

Unfortunately, I'm not overly knowledgeable about collections-related situations. However, my understanding is that once Capital One sends it to a 3rd party collections agency, they no longer really have a stake in it or anything to do with it. This is different and NOT the case if they merely send it to their internal collections department, but since you said it's with a 3rd party company, Alliance One, then I'm surprised you're being told that you still need to deal with Capital One for bureau reporting. My understanding is that when a collections agency takes over, they essentially buy the debt from Capital One, so for example if the debt was $1,000, Cap 1 may sell it to Alliance One for, say $500, then Alliance One tries to collect as much as possible of the $1,000 from you, and anything over $500 is profit for them (but obviously I'm making those numbers up. I'm not sure what the going rate would actually be). In that case Capital One would essentially be done with it, and no longer care whether you paid Alliance One or not because it won't affect their bottom line either way. But as I said, collections isn't really one of my most knowledgeable areas so I could be wrong, or they could be doing things a bit differently in this situation.

My advice would be to check out the "Rebuilding Your Credit" forum on MyFico. The folks there would be a lot more knowledgeable on this topic than I could be and you may find old threads that directly address a similar situation. Alternatively perhaps someone more versed on this topic will weigh in here.

On a different note, it's obviously none of my business, but you indicated that a major concern with this ding on your credit is that you're planning to purchase a house soon. Unfortunately, I don't think you're going to be able to completely undo the damage this situation has caused right away. The reality is, it's probably going to take several years - up to 7 potentially - for the damage to fully be undone. This means that any mortgage rates you get in the interim likely won't be as favorable as if this hadn't happened. For that reason alone, I'd probably advise waiting on a home purchase if that's at all a possibility for you. However, a second reason I'd personally advise putting the home purchase on hold for now is that you got into this problem with Capital One in the first place. No judgement here at all, but the reality is that if your current financial situation is such that a credit card debt can spiral out of control, I'd really advise against taking on a mortgage. The stakes will be much higher and payment amount much larger. I know it's not what you want to hear - and again, obviously I'm not fully aware of your entire financial situation - but you may need to take a good hard look if this is really something you're able to take on right now. Ideally, you're going to want to be able to put down at least a 20% down payment to avoid PMI (private mortgage insurance), and to establish a good starting equity stake. Then you're also going to need to be completely confident that you can make the monthly mortgage payments, on-time every month without fail, for the full duration of your term. AND you're going to need a sizable savings in place to handle emergency repairs, on-going taxes and homeowners insurance, and general unforeseen circumstances.

I'm sorry, but based on the limited info I have, I don't think you should buy a home in the near future. As I said, none of my business though, and either way I wish you the best of luck on getting this collections issue resolved and working out a living arrangement that best meets your needs.

yfan
Centurion Member
Centurion Member
 
Posts: 379
Joined: Wed Jul 09, 2014 5:55 pm
Location: San Jose CA

Re: Capitol one sent to collections - Please help!

Postby yfan » Mon Feb 01, 2016 12:41 pm

BrandiRo wrote:I had a Capitol one credit card I fell behind on and were threatening to send to collections, I finally had enough money to start making payments and within three
weeks of it off. I made an $80 payment and then four days later they sent it to collections. I got in contact with the collection agency (alliance one) and expressed that I would be paying the debt in full on the 19th of february. I then asked if I paid it off, since it is such a short amount of time if they would not put it on my credit report. They told me that they do not do the filing with the credit bureaus and that I should call Capitol one. I called Capitol one and they said when I paid it in full the collection agency would notify them and then they would update it as "paid" or whatever on my credit report. I want this DELETED altogether. After all, three weeks is really short.

You keep saying it's 3 weeks, but your payment is not actually late only 3 weeks, is it? It's that you are able to pay it off 3 weeks after they already sent it to collections. So how late is your payment, exactly? I don't think they send things to collections until a payment is actually 180 days late.

You can try good-will, but Capital One is unlikely to delete it at least until a while after your account is fully paid. Even then it's a hit or miss.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 0 guests