Capital One charge-off included in B/L ratio and illegal interest charges

I'm in the process of educating myself with regard to credit reporting/scoring, etc.


I have 2 Capital One accounts that have been charged-off in 1998; here is one of them:


1. High Credit $344 DOLA 6/98
Charged-off

Last Reported on August, 2002

Balance Current Status Past Due Amount

$1,302 Bad Debt/Collection $1,302



If the account has been charged-off, is it normal to report a "past due amount" as of 8/2002?

Is the "balance" amount being considered in the revolving debt ratio?, is that normal?

Why is the "Current Status" reading Bad Debt/Collection, when it has already been Charged-off?

Any help/insight would greatly be appreciated.

Trixie, your situation sounds exactly like Holly's:

http://forum.creditcourt.com/discus/messages/346/346.html

Check the screenshots of the reporting there.

"If the account has been charged-off, is it normal to report a "past due amount" as of 8/2002?"

No, and that's one of my issues with Cap One.

"Is the "balance" amount being considered in the revolving debt ratio?, is that normal?"

In Holly's case it was included, and it should NOT be.

"Why is the "Current Status" reading Bad Debt/Collection, when it has already been Charged-off?"

It IS a bad debt, but it should be reported with the correct date and as charged off. Capital One knows that the more they damage your report, the more likely it is that you pay.

"1. High Credit $344 DOLA 6/98
Charged-off

$1,302 Bad Debt/Collection $1,302"

If they haven't sent you monthly statements after the chargeoff, they shouldn't be able to charge interest. That's what several attorneys told me - a lot more on that is at CreditCourt.com and while Capital One's Litigation Specialist LeighAnne Coverstone denies that they've ever had a problem with those interest charges, I think that they've been sued over this many times and she lied to me.

Has your SOL expired yet?

We actually have 2 Cap One Accounts being reported like this. The SOL's are not up yet. I live in NJ.

5/2005 and 6/2005

I ran my husband's FICO (pulled from Equifax) 596

1st Negative Factor: Serious delinquency or derogatory indicators/remarks and public record or collection information is being reported on your credit file.

Chapter 13 Bankruptcy to be off 4/03

Released Federal Tax Lien 2/2001 - which is an error by the IRS - this was partially paid through 1992 BK, voluntarily dismissed and re-filed in 1996 to lower payments - IRS filed Motion to change debt to non-secured/non-priority - to get no more distribution with regard to 1989 tax debt (originally $26,000+ - Capital Gains disaster). The lien was filed by the IRS to collect remaining $10,000, they released it, but I'm afraid to address this due to the fact it took me 3 years (until 1999) to get our tax refund back in lieu of the IRS applying it to the 1989 Tax debt.

2 old paid collection accounts to be off 6/03 and 10/03 respectively.

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2nd Negative Factor: Balances are due on accounts that are past due or have derogatory indicators/remarks

"past due credit obligations is $3070"

Cap One Charge Off - Past Due Bal $1,302
Cap One Charge Off - Past Due Bal $1.156
1st Nat'l Bank of Marin Charge Off - Past Due Bal $612

Add them together and you get $3070


We have 3 other credit cards with $500/$350/$300 limits that have been paid with no derogs for around 2 years.

*******************************

3rd Negative Factor: The proportion of balances to credit limits on your revolving/charge accounts is too high.

Proportion of balance to credit limits is 158%???????

We have a total of $1150 in credit limits, they are almost maxed, but 158%???

Fourt Negative Factor: The time since your most recent derogatory public record or collecton is too short.

Tax Lien - 2001
1st Natl' Bank of Marin - 5/2000


Under all this garbage, I know there is an acceptable FICO score, but getting there is going to be unbellievable.

Any input would be appreciated.

There's nothing I can say on the IRS lien except that if it's an error it needs to go and if it's NOT an error they STILL can have it deleted if they want to - there's a thread on that somewhere here.

"Proportion of balance to credit limits is 158%???????

That's most likely because of the "Hight credit" reported by Cap One being lower than the amount owed.

BTW, the Bank of Marin is worse than Cap One. You need to dispute with the BUREAUS the INCORRECT data (i.e. the current, delinquent balances and high credit) and request the accounting and application from Cap One and Bank of Marin.

Would I be openiing a can of worms requesting this information from CAP One because of the SOL?


FYI - on one account reported

DOLA 5/98, I have 1 statment from Cap One dated 7/12/1998 showing the balance as $389.94.

I have a copy of a collection letter from Coldata Collection Companies dated 5/23/99 offering a settlement on the outstanding balance of $723.28.

In 10 months, from 7/98 to 5/99, there is $333.34 in "interest?" added to amount.

You always run the risk of "increased collection efforts" when you contact a creditor or collector.

Read Holly's ordeal - if that scares you so much that you decide to NOT dispute incorrect credit data, I'd sure like that affidavit to present to the judge and/or jury - and that goes for anybody else.

Capital One's collection practices result in consumers losing the right to accurate reporting as long as they can't pay whatever the creditor alleges is owed.

According to Capital One, the FCRA applies only to people who paid their chargeoffs.

"I have a copy of a collection letter from Coldata Collection Companies dated 5/23/99 offering a settlement on the outstanding balance of $723.28.

In 10 months, from 7/98 to 5/99, there is $333.34 in "interest?" added to amount."

Well, you SHOULD have asked about that then. Of course you still can question the CURRENT reporting. You can sue for credit reporting violations up to 2 years ago, and FDCPA violations up to 1 year ago.

Of course keep the letter and reports because you can use those to establish "inconsistencies" - i.e. accounting fraud.

I'm not sure if this would have any genral relevance to/for you but go to http://milberg.com/cases/capitalone/ and read about a class-action law suit that was just filed in July for Securities Fraud against CapOne.

Very interesting reading.

Thanks, it definitely is! I'm compiling articles and complaints about Cap One at http://forum.creditcourt.com/discus/messages/18/18.html