January 25, 2010

Capital One BUSTED By West Virgina Attorney General

Attorney General Darrell McGraw has sued Capital One Bank (USA), N.A. and four other companies in the Circuit Court of Mason County for unfair and deceptive acts and practices, unlawful debt collection practices, and unconscionable conduct in connection with their credit card lending and collection practices.

Capital One Bank (USA) is a national bank headquartered in Glen Allen, Virginia. It has about 500,000 credit card accounts with West Virginia consumers. Capital One Services, LLC, Capital One Services II, LLC, Capital One Services III, LLC, and COSI Receivables Management, LLC are Delaware corporations that service and collect on the credit cards issued by Capital One Bank.

The complaint filed in Mason County is based on numerous violations of West Virginia’s consumer protection laws. The complaint alleges that Capital One solicited consumers to enter into debt repayment plans by sending them solicitations that were disguised as offers of new credit. The offer was sent to consumers who had charged-off accounts with Capital One or other creditors. Under the terms of the offer, Capital One agreed to provide the consumer $1.00 of new credit in exchange for the consumer’s agreeing to transfer the entire account balance of a charged-off account to the new credit card account. The consumer was required to make payments on the old debt in order to receive any further increases in the credit limit on their new credit card.

By transferring the old debt onto a new credit card, Capital One was able to charge interest, late fees, and over-the-limit fees on debt that otherwise would not have been subject to those fees. It also allowed Capital One to re-age the debts so that the applicable statute of limitations period started new.

The complaint also alleges that Capital One: issued multiple low-limit credit cards, each charging exorbitant fees, rather than raising credit limits on consumers’ existing accounts; unconscionably imposed over-the-limit fees on consumers’ accounts; sold services to consumers who could not benefit from the services; and, billed and attempted to collect for credit card accounts that were never activated.

Attorney General McGraw stated, “Capital One’s practice of offering nominal extension of credit, if and only if, the consumer agreed to pay off a debt too old to be sued on is tantamount to loan sharking.” Until recently, the Attorney General was under a federal court injunction that prohibited him from suing the bank for its credit card practices; however, on January 4, 2010 United States District Court Judge Robert Goodwin granted the Attorney General’s motion to modify the injunction. Under the new order, the Attorney General is not prohibited from suing the bank to enforce non-preempted substantive state laws.

For more information or to file a complaint, please contact the Attorney General’s Consumer Protection Division. Call 1-800-368-8808, write to P.O. Box 1789, Charleston, WV 25326-1789, or visit his website at wvago.gov.

January 20, 2009

Yes & Yes

Filed under: Collections,Re-aging

When a collection agency reports an account to the bureaus the DOLA will change.  Is this considered re-aging and does this changing of the date have any effect on your score?

Russell

June 9, 2008

Mortgage Payment Application

Filed under: Mortgage,Re-aging

About 6 months ago, we missed one mortgage payment because of a major medical procedure that was not paid by insurance.  Although I was able to catch up that particular payment a few months later, and made the subsequent payments on time, my mortgage company is reporting all 4 months as late.  They have told me that they apply any payments to the oldest due payment regardless of which month it is paid.  Is this normal? 

A friend who works for a major mortgage lender said that I could request for them to reage or adjust the reporting to reflect only one month actually missing. I have had no response from the mortgage company so far.

Jennifer (more…)

May 26, 2008

Antediluvian Collection

When a creditor sells a debt to a debt collector and then they sell it again and again does the orignal date of the delinquency stay the same or does it start over each time they sell the account.for ex if I had a delinquency in 2000 should it be off my credit report whether its been paid or not ? as it is now 8 years later or does the time clock start over each time it gets sold to a diff debt collector? thanks Joe (more…)

February 2, 2008

Re-aging Gets You Back on Track

Filed under: Re-aging

I lost my job in 0ct of 07 and have not been able to find work and majority of my credit cards have been without pymts since oct 0 except 2 which are very easy to pay like 10 bucks on both. My wife is working which we are VERY limited with the income we have.

Okay let me get to the Meat of my question it will take like from the time i start doing it like 1600 to 1700 bucks to get current on all my credit cards!!! which the high ones like 5 with a TOTAL OF LIKE 9000 GRAND PLUS I HAVE 2 OTHER ONES THAT LIKE 300 BEHIND. THE ONLY WAY I can DO SOMETHING which i am IS WHEN I LEAVE FROM I AM Living now state wise that is.  BECAUSE I WILL HAVE A JOB AND I CAN START MAKING PYMTS after i become current.

I know i am not going to become current where i live now so will they close these by may 08  if i have the $$$ to make it current??? and continue making my pymts as if i did not lose a beat even i know i did.i do not want ruin my credit hell it is already huh will they waivethe late fees???

Franz (more…)

November 14, 2007

Returned to Work, Now Please Re-age

after I loss my job, i was unable to pay for Visa credit card. as a result I was reported to the credit burau by the credit card company. soon after I went back to work, I call the company and setup a payment plan. here is my question: once i pay them off, will they remove that negative report  from my credit history?
Thanks!

Jeff (more…)

October 8, 2007

Starting Over

hello,

       I’ve been reading your website that last two days and decided to finally write for your opinion.
I am 25 year old single mom who just a had a baby boy.I have a HORRIBLE Credit Report and Im not sure my next step to take.The last two years I took the approach to start paying off my collections on my credit report to bring up my score. Which to my surprise it did raise it because I was able to buy a car in July of 2007. I also went and got 2 credit cards.When I was 18 i went and obtain creidt and didnt know how to handle it. Now because My car note and my debt took the best of me. My credit score plummet down to the floor when I bought my car my credit score was 640 now its below 500.My car was repossessed and my credit cards are in collections. i want this to be clear and not showing credit settled on my report when i Pay my debts.

Question 1
will paying off my collection debt and repo help my credit score

QUestion 2
If no to question 1 how can i raise my credit score.

Question 3
How long should i wait to purchase a house for my son and I.

I already have 3 arrangements with collection agencies to pay off the debt. Was this the right thing to do

PLEASE HELP

Francesca (more…)

October 7, 2007

Credit Bureaus That Start With the Letter E (for $100, Alex)

I have been reading blogs on this site and it is has answered a lot of my questions. I still have a couple of more. My ? is what can be done about old collections{11 YRS OLD} that show up on your report with 2007 dates?Sold to new companies.And accounts that are showing 2,3 times on report.Also accounts that are paid but old should that have an impact on my score?My score is at 517 at the big E. After reading the blogs I believe time will be on my side. All help is needed. Thank You, Marilyn (more…)

September 8, 2007

FFIEC Re-Aging

The Sun will shine brighter than a man made parking light

I havent been on here in awhile but I have a question. 

My mother has been very sick, she has cancer in her ears nose and throat. 

Because of all the traveling I have had to do, I am 3 months behind on my carecredit card. 

Is there something I can do to get them maybe to reage this account if I get caught up?  Could you please tell me the steps I need to take? 

Thank You
Vanessa (more…)

September 6, 2007

Mr. Furley is a Mortgage Lender

Three's Company

I have a equity line on my property that I have fallen behind on. 

I pay my 1st mortgage on time. 

I am not behind. 

What are all of the consequences of the equity line other that a bad credit rating.

Kathy (more…)

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