Hi All - Haven't been around for awhile - been busy paying off old debts and moving forward. I've wiped out about $17K in debt over the past 15 months with about $20K more to go, mostly through settlements but I had a few accounts still in good standing that I've just been paying on the good old fashioned way. Even got a fresh credit card about 3 months ago.
Anyway, we had a Capital One card that was charged off years ago (probably about 2009). It was with their "internal" collection agency - we started getting statements every 3 months vs. every month, had to log in through a different site, etc. Anyway, once I got out of school last May and started making money, we started paying on it regularly. During this entire time it had never been escalated beyond their internal collections. We sent them $100 a month for several months - we received a couple of settlement offers (about 10% off), but didn't take them up on any of them, just kept plugging along monthly.
In February (18th), we received a settlement offer - at that time, our balance was $1384 and they offered a settlement of $230.82. I jumped all over that - received verification from them dated February 27th that my payment had been received and then never heard another peep. I know it can take a bit for settlements to be cleared, so I just waited and eventually sort of forgot about it. Flash forward to May 7th - get a phone call from Capital One wanting a payment. What?? Rep claims that settlement offer (which she can SEE on her end) was just a computer glitch and that it never should have been sent out. We tell her tough noogies - not our problem (in not so many words). She claims the deadline for the settlement was February 3rd, but the letter wasn't even sent until Feb. 18. Anyway, she makes threats of legal action and yada, yada. We hang up perplexed but not concerned - I have ALL of the documentation regarding the settlement and our payment.
Today, receive a letter from a law office in my state demanding we contact them for payment - actually kind of an odd letter as there was nothing enclosed to send back with payment. I've drafted a DV letter to send them tomorrow, as my position is still that we have settled this debt. I find it hilarious that they never bothered to turn us over to legal when we ignored the debt for over a year, with a balance of over twice what it is now - yet now, it is nearly a legal matter.
Am I wrong here? The account is now completely wiped out of the Capital One system - I can't log into it at all anymore. Is their settlement offer not valid if they say after the fact that it isn't valid? I feel like that is fraudulent somehow...
Do you have copies of the letter? Was there a date actually in the letter when you needed to respond by? What state are you in? Do you have any special collection laws such as those in TX/CA etc? What is your states SOL? However, keep in mind that since you started paying on the debt after 2009 after the date of last activity, you may have reset the legal sol.
If you paid the settlement in good faith before the cut off date in the letter, then it's up to Capital one to prove the letter should never have went out. But, this is Capital one we are talking about.. and they don't like playing "nice".
Ohh and congratulations on paying such a large amount of money in a short amount of time, hopefully you have been keeping records of any settlement offers you've gotten so it doesn't come to bite you in the butt later, if you did settle with anyone else hopefully you also negotiated for them not to sell the remaining debt if the settlement is large enough where it didn't pay off the balance, keep in mind you may also get a 1099c at the end of the year if the remaining balance is over 600 I believe.