Capital one adding sears debts to card balance

Recently, my mother accepted a pre-approved credit offer in the mail from Capital One. She received the card and realized that there was a $50 annual fee and decided to close the account. She cut up the card and called Capital one within 3 days of receiving the card to cancel it. She never used the card for any purchases. Now, she found out the Sears transferred an 8 year old debt to her new capital one card for $500. She now has a capital one visa with a $500 balance from her old sears card. How can this be? They have reported it to the CRA's as a $500 past due 180 days. She never even used the card or agreed to have sears transfer this deliquent account to her new visa. Is this legal? There may have been some fine print somewhere on the application about the sears account being charged to her capital one card once accepted. However, she did not notice it. HOW CAN THEY DO THIS???? Is this Legal for them to do this?
Any advice on how to proceed would be greatly appreciated.

Yeah, it's a form of trickery at it's best, but from a legal standpoint it looks legit.

The problem is not reading the fine print, signing the form and mailing it in.

You just agreed to the past debt, reaffirmed such and now have restarted the bad debt process all over again, not to mention the statute of limitations as well.


I got a similar offer in the mail once and read the fine print stating they would transfer an old citinbank visa charge-off onto the new account.


I don't think you will have much to debate here, I'm sorry!

Tac

thanks for the reply. Others, please be on the lookout for this scheme. I am going to request a copy of the original application to see what it really says. My concern is that she never even used or activated the card. Because of this, maybe she can be exempt from the stuff they pulled.....I dont know. Maybe since the card was never activated or used, the contract could be voided somehow. Also, what if the statute of limitations on the old sears debt has expired when they transferred it? Can they still attempt to collect the debt? What exactly does reafferming a bad debt mean and how does the statute of limitations affect it?

Thanks in advance!

SEARS????

I know Cap One is trying to reaffirm their own old chargeoffs with new cards, but haven't heard of this Sears scam yet.

Capital One BOUGHT Sears chargeoffs?

Capital One reaffirming OLD debts with expired SOLs by offering new credit line (http://bayhouse.com/credit-forum/showthread.php?s=&threadid=15)

Make sure you get the application, see what it says.

this is way too clever. must have been a marketing genius mixed with a diabolical collecting agent who thought this up. fine print everyone!!!!!!!!!!!!!!!! It can kill you. Have to read what CapOne sent the other day.

I just got a similar offer from them on an old, out of SOL bill from a Radio Shack account. The debt in question was over 10 years old. They sent it to me at my employer's address in a window envelope with "Re: Your charged off account" printed under the name and address. I am considering a suit.

You really should sue - and publish.

I'd like to get some documentation about this and include it in a press release to thousands of journalists. This fits right in with their other scams.

Capital One - exempt from FCRA and Truth in Lending Act? (http://forum.creditcourt.com/discus/messages/346/346.html)

Capital One and Amerix, fka Genus Credit Management (collectors in disguise) (http://forum.creditcourt.com/discus/messages/180/180.html)