I Settled My Capital One Debts But It Doesn’t Show That On My Credit Report

by Jen

The following guest post is from Steve Rhode who is a consumer debt expert and helps people for free to learn how to get out of debt and avoid scams.

"Dear Steve,

I am in CA and I received a call from a collection agency on 9/6/11 about a credit card with Sam's Club. They took me completely by surprise and against my better judgment I answered all kinds of questions i.e. Martial status, employment etc. When they told me how much I owed, I told them I didn’t agree with the balance and to send me something in writing. He said he would and asked for my email. Haven’t received anything.

I asked what would be their lowest settlement (somehow thinking it would be affordable) and can put this all behind me. He said $900! I told him that I couldn’t afford it and he said can make payment in 3 installs. I told him can’t afford it especially when I don’t agree with balance. When my senses started to come back to me, I asked for his Name and company he was calling from and he said it so fast I could only get his name and Capital something???CDC?? Then I asked for his phone number and he hung up.

I pulled my credit report that day and found that my Sam's account has been "purchased by another lender" It shows charged off in 2009 $1431. Under the Sams entry is an entry from Paragon Way Inc. with original creditor as Sams and remarked as in collections with an original balance of $1432 and last updated 4/2011. Also there is an inquiry on my credit report from JC Christensen on 4/15/11. But they are not the ones that called me.

I also noticed that there is still a remaining balance due on the two 09 charged off accounts I settled with Capital One in August 2011. I settled for less than what they said I owed. I thought that by settling with them they would show as settled/paid. One of the accounts I had to settle thru Legal Recovery Law Off. which Cap One hired and assigned my acct to. (I did not know I was being sued) I was served a summons on a Sunday and Capital One cashed my check the prior Friday. Thank God they filed a dismissal with the courts.

How can I go about making sure I pay the right company? I am ready to settle the account for a fair amount in exchange for paid in full and if possible and legal a removal from my credit report. After reading all the horror stories online about settling debt with a third party collector/purchaser of debt I want to make sure I pay the right people. The last thing I want is to get sued again or pay just to find out they resold the debt and I then have to pay another company.

How can I go about having Capital one report my accounts as paid/settled?

Do you know of any low cost consumer agencies in CA that can help me with this?

Comments for I Settled My Capital One Debts But It Doesn’t Show That On My Credit Report

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Sep 12, 2011
Settled Accounts
by: Steve - The Get out of Debt Guy

Dear Jen,

Your question brings up a number is issues.

First, I don't think we have a good idea of who the recent company is that contacted you. Let's wait for them to contact you again and find out exactly who they are. Get the phone number and street address. Also get the full business name and post it in the comments below so I can check on them.

Second, on the old Capital One debt that was settled, there is some question if it actually was. Hopefully you have some documentation stating what the settlement agreement was. I just don't want to see them later come back and claim "we never agreed to that."

Of course the credit report is not an exact representation of your account. It might just be that they never updated the report with the new balance. I'd suggest you give Capital one a call and ask them directly.

Even with settling the debt, the amount of debt that was not paid or forgiven will still appear on your credit report as a bad debt. It's the amount that you paid for the settlement part that should be reflected as paid.

Before you start paying anyone for help with this I think there are some easy steps you can take to resolve this for free.

  1. Call Capital One and ask them for the current status of those accounts you settled. Make sure they show a zero balance and did not sell those debts to anyone else.
  2. Let's wait for another contact by that collection agency and figure out who they really are. I'm sure they will be contacting you.

Note from Debt Collection Answers:

For updates to this question and Steve's reply, visit GetOutofDebt.org

Sep 19, 2011
Legal Recovery Law Offices/Capital One
by: Rafael

These guys are a bunch of characters. I called to offer them the entire amount owed ($3,330) and they insisted that I settle the account, ($2,200). They sent me a summons but would not file for a dismissal. None of it makes sense. I am calling Capital One tomorrow. This all happened the first week of Sept. 2011.

Oct 27, 2011
Capital one wont listen...
by: Anonymous

Capital one has nothing but BAD reviews, all of them with similar complaints. People always end up on collection w/out knowing it. Even if acct was paid in full n there is no balance, at least thats what consumer reviews say on capital 1. is this legal?

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