Posted on: 09th Jun, 2010 01:47 pm
My husband had a Capital One card. It was Charged Off and given to a collection company in 2004 with a balance of approx $2400. We need to get it cleared up We contacted the collection company that had it and they said due to NC State of Limitations they couldn't touch it any more and wouldn't take payment. They returned it to Capital One. Now that Capital One has it back they have added additional interest on it and now want $3500 for a settlement. Is it legal for them to add this after the charge off? This has been in the last 72 hours. Thanks
Hi,
Yes, the creditor can add interest onto the existing amount, because the account is now again with the original creditor. So, it is legal. Your husband is now legally bound to pay the original creditor. If your husband can pay off this debt, the charge-off may get removed from his credit report.
Can I know the outstanding debt amount? Debt settlement generally lowers the debt amount by 40-60%. However, this hurts your credit score.
Thanks,
Sandra
Yes, the creditor can add interest onto the existing amount, because the account is now again with the original creditor. So, it is legal. Your husband is now legally bound to pay the original creditor. If your husband can pay off this debt, the charge-off may get removed from his credit report.
Can I know the outstanding debt amount? Debt settlement generally lowers the debt amount by 40-60%. However, this hurts your credit score.
Thanks,
Sandra
I agree with Sandra...Cap One can keep adding interest and fees until the debt is finally satisfied.
However, you should be very careful about how you approach taking care of this debt. Remember, a "paid" charge-off is essentially just as damaging to your credit score as an "unpaid" charge-off. So make sure you negotiate your credit score as part of the process too.
However, you should be very careful about how you approach taking care of this debt. Remember, a "paid" charge-off is essentially just as damaging to your credit score as an "unpaid" charge-off. So make sure you negotiate your credit score as part of the process too.
They can still add up interest and they do so cuz they want you to pay it off
It will stay on your credit for 7yrs from the first delinquency...so you still have 4yrs left.
They can't sue you and win, but they can haunt your credit score
BTW they can take 20-30 cents on the dollar.....
If you pay ask them to agree to DELETE the tradeline if you pay it off.
It will stay on your credit for 7yrs from the first delinquency...so you still have 4yrs left.
They can't sue you and win, but they can haunt your credit score
BTW they can take 20-30 cents on the dollar.....
If you pay ask them to agree to DELETE the tradeline if you pay it off.
