My Security Clearance is Being Held Up by a Capital One Collection Account with Northland Group Inc
I am trying to get a security clearance at work and my credit report revealed Capital One is in a collection. I contacted Capital One and they longer have my account and state they can't or have no record where it went. Further research revealed Northland Group Inc. has it. I sent several request for validation letters they just keep on sending me settlement offers. This is not scheduled to come off my report until June 2018. I need to show I am taking responsibility for my debt to get this security clearance.
What is my best course of action with Northland Group Inc?
—mary
It is a bit strange that Capital One cannot tell you where your account went. I suspect this was an old HSBC account that Capital One acquired when they bought HSBC credit card portfolio. If you are certain it was a Capital One account from the beginning, having it be placed with Northland Group is a bit odd. Northland Group is a subsidiary of Resurgent Capital Management, a debt buyer. Capital One has not been very active in selling off unpaid debt to debt buyers for several years. If you recognize the account as your own, how long ago was it you last made a payment? Were you given a time limit to resolve this for your security clearance to go through?
Resolving debt in order to meet security clearance requirements.
There are a couple of ways to approach this if you are in a hurry. Sending off debt validation requests to Northland Inc is not one of them. If you know the account is yours and you need/want to settle it, your debt validation request will typically trigger certain behavior from a collection agency or debt buyer. Most collection outfits treat validation requests with the seriousness they should, as it triggers legal obligations on their part. If they cannot obtain what they need to validate the debt, they may push your account into a stack of debts to resell, or they may have it pending internal legal review. Both of which will often delay you from reaching your goal of getting a settlement or payment documented, your credit report updated, and the security clearance to go through.
Sending off debt validation makes sense if you do not recognize the debt as your own. If you are certain the debt is not yours, there are further steps you can take to get this off of your credit record.
If your security clearance is related to active duty military there are other ways to approach a collection account.
Calling a debt collector to settle a debt.
If you know the debt is yours, call up Northland Group and negotiate a pay off or payments. If you are going to offer a lump sum settlement, what amount are you prepared to pay? Can you come up with 40 to 50% of the current balance? That is a fair target if this a purchased debt. When calling, do not tip your hand that you are doing this for security clearance or to have the account show as resolved on your credit report. When a debt collector or collection agency knows you are reaching out to them because you need something, they get pretty sticky with wanting full payment. Just stick to explaining the hardship that led to nonpayment in the first place. That you only have xxxx.xx amount to offer if it will settle the matter completely.
If settling with a debt collector for less than the balance owed, you will want to get everything documented. Especially when that document can help push through your security clearance. Here is a breif report on what to look for in a settlement agreement: https://consumerrecoverynetwork.com/debt-settlement-letters-agreements
If you cannot afford a lump sum payment, some form of monthly payment agreement can be arranged and documented to show you are making efforts to, and in fact are, paying the debt. That does not always satisfy security clearance requirements. Sometimes working with a credit counseling agency in a more formal repayment plan can help.
Most of the files I have worked over the years that involved security clearances, or annual employee reviews for series 5 and 7 licenses, benefit more from settling debts than by making payment arrangements when accounts are already out for collection and no longer with the original creditor.
If you (or any other reader), have additional questions about resolving debt for security or employment reasons, with Northland Group, or any collector, post them in the comment section 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. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
We own a business and about a year and a half ago a lot of things went bad very fast. Long story short, we lost a lot of business but (unwisely) kept employees. We resulted in racking up a lot of personal credit card to debt to stay afloat and we got so far behind we couldn’t catch back up. We were even late on our mortgage a few times. It has been back current for a year now. Anyway my husband has some collections accounts and is rejoining the military and will need a security clearance. We plan on paying everything when we sell our house. Are there any specific steps he needs to take getting this kind of security clearance? Will it be ok to settle or do we need to pay in full?
My experience is that settling or paying in full on old collections does not matter for the clearance. As long as they show resolved. I would settle for less and save money where possible if it were me.
If I manage to pay off all debts owed in full or. by settlement, how long should I wait to apply for job requiring a secret clearance.
How many outstanding collections are showing on your credit reports, and when did you stop paying on them?
I have a periodic reinvestigation in a year (for a secret clearance that I currently hold).
I have these accounts that went to collection more than 4 years ago because I lost my employment:
3 Navy Federal accounts
auto loan – This account was settle with a collection company (Closed)
personal loan – This account was settle with a collection company (Closed)
VISA- Working on settle this account
2 BPPR accounts (VISA and Loan) – Both of this account with Midland – getting a final offer to settle
1 AT&T account – Working on a settlement for this account with collection company
1 AMEX – Disputed and deleted from all three credit bureaus
Cable and Telephone companies – All disputed and deleted from credit report
My question is, if I finish the settlement process for the accounts still “pending” with their respective collection companies, Should I be able to get that clearance (Periodic Reinvestigation)? Under the circumstances that these accounts are all 4 years old (or older) and that I lost my Job.
I have several accounts (Capital One, USAA Credit Card, GM Financial Auto Loan, STAR Credit Card, Personal Loans) that I have been paying for about three years without any discrepancies (perfect payments).
Please let me know what should I do..
thanks!
Also, these accounts won’t show as “paid” on the original creditor in my credit report…. I have the payment (settlement) letters though
I cannot say whether all of your efforts to resolve the unpaid debts will pass muster come background check time. I have worked with people to do just what you outlined you are doing, and they kept their jobs. And it does have more to do with the debts being resolved and a zero balance now owed, and not “paid” showing (as in paid in full).
Given the timelines you shared, you got the job with at least some of these collections existing?
I got this security clearance before all of these collections, but it was trying to enlist in the Navy. I never actually went to the Navy (I was 18 years old), and I decided to stay in College and I started working as retail sales manager (during these 3 years all of these accounts were paid on time). I was making good money until I lost my Job. Therefore I was not able to pay my accounts. I was unemployed for a year approximately.. and I decided to join the Army. Now, after 9 years, in 1 year my reinvestigation will be done. I want to resolve this issue now, and not to wait until the last minute…
Like I say, I have several accounts (new accounts, 3 years old) that have been paid on time (always, not a single delay). Does this helps?
Thank you
The paid accounts that are open and being kept current will help your overall credit picture. I cannot guess at whether that will help your security clearance, but it certainly does show a changed behavior. I would hope it helps offset some of the way the collections are viewed.
Thank you very much for your answers..
does make any difference that these accounts (collection) are old?
Any further advice?
The difference maker is often that the accounts are resolved and there is nothing owed any longer. But there are age of collection accounts that could benefit you in other ways. When was it that you last paid on any of these accounts?
they went to collection in 2011… I haven’t paid anything on them since then.. until I paid off (settle) some of them this year (one of them) and in 2013 (another one).. and planning on settling the other ones this summer..
In what way it could benefit me?
I was hoping they were older than that, as collection accounts will drop from your credit reports due to age (7 to 7 and one half years).
You have a ways to go.
Hello I am in Fl and currently working for the govenrment. I recieved a phone call today stating that NLU is taking legal action against me because I STOLE money from them. I begin to panic and try to figure out how this was considered stealing. I took out a loan and paid on it consistantly for 2 years. Things got in a jam and I was unable to make th payments. When I stopped paying my balance was $600. After talking to the lawyers office apparently I now owe $1775. I am scared they are going to arrest me and I am goint o lose my job. Is there anything I can do becasue at this point I am scared and want to pay it but I cant. Please help!
Sorry this loan ws through Western Sky then it went to Cash Call and now Delibret Services.
I have a page up with many details for dealing with Cash Call and Delbert.
Legitimate debt collectors do not call you up to warn you about the legal action they are taking and to accuse you of stealing.
The first thing I would suggest you do is call an experienced consumer attorney that pursues debt collectors for violations of federal and Florida laws. If they see you have a case, they may take your file without any cost to you.
I can help you locate one with the experience you need if you post the name of a larger nearby city.
I too have made the mistake of dealing with this rip-off company/companies and wonder when New Jersey will take legal action. I completely paid back the entire amount I borrowed plus over 3,000 in interest….
Good Luck to All!
I had a loan with them as well. I needed it. I piad 3500.00 to them and that was the 2600 and 1000.00 in interest. I have paid them enough. Per the research I did. I sent them an email, and changed my bank, I do I get them to stop calling me and anyone I might know. I block the numbers when called, but I cant afford and atty. So what other options I have, I live in KS
There is a great deal of information about dealing with Cash Call and similar loans on this page: https://consumerrecoverynetwork.com/question/western-sky-financial-cash-call/. The comments are a trove of specific information, and actions taken by people dealing with these loans.
I have a 2600 loan with cash call. I live in the state of MA. I have made one payment before my state issued a cease and desist. I know the cfpb is now suing them and I was wondering if I should still set aside the principal amount of the just in case the cfpb loses. I noticed my loan is still active and the balance has jumped up to 2x the amount I borrowed . I took out the loan in April 2013. I have not heard anything from Cash Call as yet. I only plan on paying them back the principal minus the 75 dollar fee.