Can I be sued by collection agency for a Capital One card that has been charged off?
Have court appt. on thur March17 with collection agency attorney.
Can I be sued by collection agency for a Capital One card that has been charged off?
—Gary
Yes, you can be sued on charged off credit card debts. Charge off is an accounting principle that forces the credit card issuer to recognize a loss on the unpaid balance. It does not mean the debt is wiped away. Far from it. Especially when it comes to Capital One credit card debt.
Capital One is more likely to sue you than other banks like Chase and BofA. For example, CapOne files more lawsuits than any other bank or debt collector in Hennepin County Minnesota, Cook County Illinois, and other locations.
The Risk of Being Sued for Credit Card Debt Begins After your Account is Charged Off
Creditors generally charge off bad credit card debt after 180 days of consecutive non payment. Once charged off, the creditor has 3 buckets they will drop the account into.
- Assign the debt to a debt collector.
- Hand the account to a debt collection law firm with authorization to sue you in order to collect.
- Sell your defaulted credit card balance off to a debt buyer.
Your account was dropped into the sue bucket.
There are strategies to handle debt that you cannot keep up with, even strategies to limit your risk of being sued. You are now past the point of utilizing some strategies, but have a few left at your disposal.
For more detailed information about charged off credit cards, read: Charged off credit card and debt collection
I would encourage you to schedule a consultation with a CRN professional by clicking here: Talk to a CRN Expert . Fill out the form and submit, or reach us direct by calling 800-939-8357 ext. 2.
Be prepared to share more about your finances and ability to address the present concern with an eye on your overall future financial goals.
Anyone concerned about being sued for collection after unpaid debts go to charge off status is welcome to post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
How does a credit card company decide who to file a lawsuit against ? And what is the typical time frame let’s say if you live a a state where the statue of limitation is 5 years ?
This page is about Capital One suing to collect, so I will assume you are talking about them, but the time to file suit can vary by creditor. Some do not sue at all.
Capital One places accounts with attorneys as early as month 8 of being late right now.
Not all accounts go to attorneys.
They are selling debt again, so an account can end up with a debt buyer, and most of the large debt buyers sue on a third of their accounts, and can start doing so a couple months after they purchase accounts.
I was served papers for a Capital One credit card that was charged off. I filed answers to the lawsuit and the law firm decided to dismiss the case against me. Is there anyway I can get the charge off removed from my credit with the dismissal of my case?
The dismissal is not related to credit reporting, so not all that likely you would be able to leverage that as part of a normal dispute.
What was your defense in your Answer?
Hi, i had a Cap One CC and used it for a business transaction …the business was suspicious and i rescinded the deal within the contractual time…two other CCs had the money promptly refunded but Cap One despite submitting evidence in my favor did not get my money refunded from the questionable company then charged the acct off and its in the hands of a collector. Now i am summoned to court. How can i deal with this since the FDCPA does not cover business debt. thank you
It sounds like you could use some legal advice. I would connect with an experienced debt collection defense attorney in your state.
I am pretty sure CitiBank/BestBuy is trying to serv me. They tried to serve me at my brother’s house last Wednesday, I’m sure because it was the address of record back then. I have not seen anyone since. I had an account there and had to let it go because of life and stupid choices. The charge off in July was for $2653.00 in July 2019. I can’t find any cases against me in my county online court search, and have not received any contact information from a debt collection in 6 months.
My questions are- I can settle for about $2200 if they will accept it, but I will have to have something in writing to take a withdrawal from my 401K. Now, If they can accept that, it will take me about a week to get the money. Is that something you think is doable? Or advisable for that matter. I should have never made the account and just want to be done with it. I also don’t have the time for court or the funds for a lawyer. The other side of it is I have not actually been served yet, so are there any steps I should be taking right now?
Hello,
I moved abroad 10 years ago as a student, five years ago I moved back to the US for two weeks and opened two credit cards (chase and Amex) before moving to another foreign country for work (I still reside and work abroad). My Chase card, with a total balance of $5,000, was recently charged off as I wasnt able to make payments due to work being slow. However that is starting to change. My Amex account is current and I make payments on it. I don’t plan on moving back to the US for at least another three years. The account is under my parent’s address as I’ve never lived in the US as an adult (I’m 28 years old now). What repercussions can I expect to face as a result of this? I want to try to rebuild my credit score so that when I do decide to move back I can at least have an average score. Unfortunately I made some bad financial decisions in my youth and I’ve just started to slowly repair them.
If credit reporting is the main concern, I would want to keep things current with Amex, and resolve the charged off Chase account by settling.
Can you pull together the money to settle if they agreed to 40%?
I got call from someone claiming I opened a credit card with Wells Fargo in 01/2008. I filed bankruptcy is 09/09. they told me this was not on there. It was charged off in 2012 and now I am getting court papers to settle out of court 11 years later, can they do this? I have never gotten any phone calls or anything in the mail regarding this.
No judgement has been awarded yet, a process server is trying to locate me. Capitol one has filed a lawsuit, which I knew nothing about untill I started getting alot of letters from lawyers wanting to help me settle.I’m not concerned with a judgement, because it’s all about princible with me, and cap one made me furious. but what I dont want is garnishing, and freezing my bank account. What should I do, who do I contact? Will they just put it on my credit since its only 1800 worth of debt?
Principle and debt collection do not mix well. The cost of standing on principle when you can end up with a charge off on your credit report is often too much to pay. Now you add in being sued and a judgment on your credit reports, and their ability to garnish your wages or levy your bank account, and the costs are really not worth it for most of us.
What is it that Capital One did that created this situation?
How much do you think they will settle for if I pay in full
If Capital One still owns that judgment, 50% on the low side.
oh ya the capital one judgement amount is $4530. says i have 30 days to dispute or the debt will be assumed valid by us. i dont know what to do
There is nothing to really dispute. The judgment is a matter of court record.
Were you aware CapOne sued you at the time? Are you working now?
Yes i am and was aware of it . I should have dealt with it then. Stupid mistake. My question is do I wait till I have money to settle or contact them now
Yes I am working
My concern is that you are at risk from wage garnishment if your state allows it. If that were to happen, it is awfully inconvenient for most of us, and you will be far less likely able to negotiate a lower pay off while they are guaranteed the full payments through garnishment.
It is a tough call… try to set up affordable payments more on your terms now, or save up as quick as possible to settle.
How long do you estimate it will take to save up, say half of the balance owed in order to settle (though you may need more)?
What state are you in?
I work for a small family owned business in ky
I had 3 major credit cards that were defaulted on around 2006. I have avoided them for several years, never really having the means to take care of them. Last year I was finally able to save some money as was ready to start working on my debt. After contacting a attorney I was told that I should not file bankruptcy. The debt was done before i was married and i married in 2008. I started with the smallest ones first Portfolio recovery assoc. $4,011 for providian national bank. settled for $802 on 9/13. The next one was morgan and pottinger for midland funding who bought bank of america and had a judgement lein on me for $3264 and settled for $1650 on 03/14. They sent satifaction of judgement to courts. I was looking for my credit report to show better score but it still had judgement on report so i called and they said i would have to send the satisfaction to each credit agency. So I did. Big mistake. two days after i did that got a letter from fenton and mcgarvey about a capital one judgement that was granted in 2008. Now thay have my new address and married name. Since I paid these others off I have no money to negociate this debt. Do i respond to the letter? i dont want to pay in full. I was hoping that i could deal with this after tax return was recieved. we have bought a house but it is only in my husbands name and i am not on his bank accounts i have my own account but it never has over 500 in it. do i respond or wait till i have some money saved? please help i am sooooooo scared.
Thanks