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Question
I was contacted by telephone from "pre-legal" for capital one. I have not rec'd any type of letter from this company and they contacted my family in florida. (not sure how I do not live in Fla.) Anyway I had asked Capital One several months ago to cancel my card, but they refused until I paid what was past due, which amounted to over $200 worth of over the limit and late fees. (which could not afford it at the time) So for the past several months those fees continue to be charged.
What is pre-legal. At what point can I start of try to neg. a reasonable settlement. The orginal balance was $402 before the late and overlimit fees started to add up bringing the balance to over $1000, in light of the fact I asked the account to be closed several months ago.
Also, what would be the process? The "pre-legal" team acted as if this was going to be going to court soon. I have heard Capital One always takes debts to court. I thought I would have a chance to settle and make timely payments with a collection agency.
I guess they can call pre-legal anything, but is usually means their internal collection department. Usually the last step before for either turning over to a collection agency or filing a lawsuit themselves. Kind of one-step beyond a the normal customer service/collection department that calls when the account first becomes delinquent.
You can try and settle ANYTIME but, as the saying goes, it takes two to tango. They are under no obligation to accept anything less than full payment per your contract terms.
I would send a certified letter closing the account and stating you had wanted it closed months ago. You could also offer a settlement at that point. Remember anything you say or write can be used against you if they sue or turn over to a collection agency so you may want to be careful what you admit to.
It is always better to settle before it goes to a collection agency to prevent another negative account from appearing on your credit. And it DEFINITELY is better to settle before a judgement gets into place.
Good luck,
Regan
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA University of Minnesota
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