Ask a Debt Collection, Debt Settlement, Credit Card or Credit Reporting Question – Get Help

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Comments

Jeremiah says

March 23, 2021 at 11:13 am

I am trying to remember the settlement process with Capital One that we talked about. I received a letter that one of my accounts is now 6 payments past due, and they are saying the next step is charge off, account closed, and full balance still due. At this point, I am still waiting for them to notify me of legal action and then I reply with a suggestion for a settlement and monthly payments, correct? Or am I missing some stuff?

Reply
- Michael Bovee says
  
  March 23, 2021 at 11:23 am
  
  I would not wait for legal action in this situation at all.
  How much is the balance owed to CapOne?
  How prepared are you to pay a settlement in the next 30 days?
  
  Reply
  - Jeremiah says
    
    March 23, 2021 at 2:14 pm
    
    In our previous conversations, I could have sworn you recommended that I wait the 180-210 days of delinquency before presenting settlement options–which would have been around the time they presented legal action like my Discover card did a few months ago. On the account I’ve mentioned here, the balance is $11k, but I have two other account with Cap One totaling $25k. I’m in no position for a settlement in the next 30 days, and probably not for another year or more.
    
    Reply
    - Jeremiah says
      
      March 23, 2021 at 2:17 pm
      
      You had mentioned that I could eventually set some sort of payment structure up with them, and then they would basically accept anything I could pay per month over the few years that the payments would be made toward the ultimate settlement amount. If I’m remembering correctly?
      
      Reply
      - Michael Bovee says
        
        March 24, 2021 at 9:15 am
        
        You can set up that settlement with Capital One by proactively calling them to negotiate that when you are just passed charge off (just after 180 days late). That is what I would do.
        You do not have to wait for a legal notice to settle an account, virtually ever, though that is how things can happen when we have more accounts to settle than we have money for at a given time.
        Please continue to post questions in the comments as you go, and at key inflection points, and when you want to better understand something.
        You walked away from past conversations with some very wrong impressions that could prove very costly.
        
        Reply
        
        Jeremiah says
        
        March 24, 2021 at 1:38 pm
        
        Thank you for the reply. I will continue to post the questions here. And I have two more about the Cap One accounts right now. So, I have three accounts with Cap One. Two are at six months and going into discharge the first week of April. The third account is at four months behind, so two more months until it discharges. Do you suggest that I call into to suggest a settlement plan on the two accounts going into discharge now and wait on the third? Or should I attempt a settlement negotiation on all three in April, even thought the third account will only be at 120 days?
        
        And clarifying a previous point you made in our first conversation: Cap One will probably offer me a settlement over a three year span? And as long as I send them some sort of money each month, they will be satisfied, as long as I pay the remainder of the settlement at the end of the three years?
        
        Reply
        
        Michael Bovee says
        
        March 24, 2021 at 2:46 pm
        
        How long they allow a settlement to stretch out often depends on the balance owed, but they tend to offer payment plans ranging from 3 to 36 months, and I do see them allow you to configure the payments with flexibility to miss a month, but no more than 2 months in a row, and where you can send a lower amount some months, as long as you make it up at the end.
        The above is what I see when a professional negotiates, which often translates to you being able to.
        No, you would not settle all 3 accounts in April after only 2 have charged off. Settlements on accounts that have not charged off yet are typically only going to allow 3 months payments on the whole settlement amount. This is because of an OCC rule banks follow.
        You can get longer than 90 days to pay on charged off accounts only.
        
        Reply
        
        Jeremiah says
        
        March 24, 2021 at 4:06 pm
        
        Thank you! This has been very helpful. I wouldn’t be opposed to having your team negotiate these settlements for me–to ensure I’m getting it right. But maybe I try for the settlement myself, and if I don’t get what you’ve mentioned here, then maybe I can bring it to you?
        
        Reply
        
        Michael Bovee says
        
        March 25, 2021 at 8:07 am
        
        Sometimes it works just fine when people try on their own and get stuck, but we can still get outcomes we expect.
        Other times things were not handled correctly and we cannot get expected outcomes.
        Ideally, if you thin you want help, I would just start off with that.
        
        Reply
        
        Jeremiah says
        
        March 25, 2021 at 12:41 pm
        
        Got ya. Thank you for clarifying. I would at least like to discuss cost and process of your team handling the negotiations. Is that something you would clarify in these comments, or should I make an appointment to discuss those details with you?
        
        Michael Bovee says
        
        March 25, 2021 at 1:11 pm
        
        It would be more efficient to talk over your strategy on a phone call. You can schedule the call with me here: https://calendly.com/debtbytes/15min
        
        Jeremiah says
        
        March 31, 2021 at 3:58 pm
        
        Michael, am I remembering correctly that you said it would be likely that, if I can find the cash upfront for CapOne, you could potentially negotiate a settlement for me around .05 cents on dollar? If that’s the case, then I might be able to find the money to go that route.