Capital One - something fishy going on? (re:SOL + re-aging)

[debtprison]

I have a very small debt with Capital One from a credit card. The principle amount was probably $250. I've noticed for the last six months I've been getting statements which make it appear that the account is actually active. It's not or isn't supposed to be. They charged it off years ago and closed the account.

I know that the card was last used or paid around 2006/early 2007 so I know it's very close to the SOL in my jurisdiction. I'm wondering if this is a collection tactic they are using or perhaps if they are just re-aging and re-opening accounts to avoid the SOL expiration. FWIW, I have not checked my credit report lately to see. I'm just curious if others have seen this?

[treehugger1]

I posted a similar issue with C1. I am also getting statements for the account and balance owing. My accounts are all beyond the 3 year Virginia SOL. Oregon has a "choice of law" statute, so Virginia is my choice. Virginia was also the state listed in my credit card agreement.

I think it is a bit strange that they would continue to send monthly statements. I started getting the statements about three years after last payment.

[newbie2]

I posted a similar issue with C1. I am also getting statements for the account and balance owing. My accounts are all beyond the 3 year Virginia SOL. Oregon has a "choice of law" statute, so Virginia is my choice. Virginia was also the state listed in my credit card agreement.

I think it is a bit strange that they would continue to send monthly statements. I started getting the statements about three years after last payment.

Nothing strange about it. Regardless of the SOL they can continue to attempt to collect. The only time the SOL comes into play is if they sue you for the debt. Then the SOL can be used by you as an affirmative defense.

[frogger]

or perhaps if they are just re-aging and re-opening accounts to avoid the SOL expiration.

No can do....

[treehugger1]

I am very aware that they can continue to attempt to collect on a debt until they have sold the debt or completely dropped the debt and issued a 1099. I just find it curious that the re-billing started at the exact timing of the Virginia SOL. I had not been billed since charge-off. There has to be some reason why the billing restarted at the SOL date.

[debtprison]

No can do....

I know they aren't supposed to and legally can't but are they attempting it? I guess I will need to pull my credit report and see how they are trying to report that past debt. I'm just worried that they are trying to play some sort of game where they claim I made a $10 payment 6 months ago so that they can claim the SOL has reset and they can now successfully sue and obtain a judgment.

Nothing strange about it. Regardless of the SOL they can continue to attempt to collect. The only time the SOL comes into play is if they sue you for the debt. Then the SOL can be used by you as an affirmative defense.

Well it's definitely at least strange even if it is legal. The account was charged off and from the statements they are sending there is no indication that the account is anything other than active. It includes a notation on the outside of the envelope "statement enclosed". Within they included a privacy policy insert. It is dated as if it were a monthly statement and they note a $7.28 charge this month for interest. It also has the full account number with an invitation to "Manage your account online". Then there is a notation about "Interest charge calculation" which shows my APR. On the back it looks like the normal credit card statement legalese with sections about "Your rights if you are dissatisfied with your credit card purchases" and "Billing rights summary".

Again, this account hasn't been touched by me in 4 - 5 years.

[treehugger1]

debtprison, I am now getting the same "statement" that you are. I also get the "current balance" and the "interest" from last month. I have to wonder if they are somehow keeping these connected to accounts receivable even after chargeoff, which completely against the federally suggested chargeoff policies after 6 months.

Or, they adopted some new billing software that can't distinguish between current debt and charged-off debt.

My CR does not suggest any re-aging of debt. I don't think this is as simple as "continuing to attempt to collect a debt." It makes no sense to me at all. Pure waste on C1's part.

No matter what the case, they are generating costs and non-sustainable paper waste.

Buffoons.

Hey, just an opinion...

[WorriedNDebt]

I posted a similar issue with C1. I am also getting statements for the account and balance owing. My accounts are all beyond the 3 year Virginia SOL. Oregon has a "choice of law" statute, so Virginia is my choice. Virginia was also the state listed in my credit card agreement.

I think it is a bit strange that they would continue to send monthly statements. I started getting the statements about three years after last payment.

So if I am understanding correctly the ability to garnish or "collect" is utilizing the state listed on the credit card agreement, meaning the debtors state address and using those collections laws? Is this correct?

[treehugger1]

It is not that simple. Some states have a choice of law provision. Like everything else related to civil matters, the laws vary wildly. Here is a look at Oregon law.

http://www.leg.state.or.us/ors/081.html

It is quite interesting. You will need to track down your own state's contract laws.

There are a great many people who have no idea that"choice of law" even exists in some states. This is why it might be a good idea to track down your original unsecured debt/CC agreements. Read what the CC company stated and then compare to yoou state laws.

I am only an amateur. I do not practice law nor offer legal advice. I do offer my experience with my own debt issues. I do try to get folks to do their own due diligence.

[GoingDown]

It will be interesting to see how this turns out.

The last thing I have heard from CrapOne was when I received a credit card application in the mail from them, with my name and address and the balance of my outstanding default judgment balance already filled in, blanks for me to fill in my s.s. # and date of birth, and a small fine print paragraph where I acknowledge and agree to pay the outstanding balance plus interest of the judgment I owe them. And in exchange for that, they would give me a generous $25 credit card limit. Wow! What a great deal! It was their way of re-aging a SOL judgment debt.

They have not yet sold my debt to anyone else.

They have not been sending me any statements in the mail.

My guess is that by sending you monthly statements, they hope you will send them a check for the monthly payment amount, and thereby re-age the debt, so they can sue you for it.

[treehugger1]

Goingdown, I agree. And, even if they can't re-age the debt, a use of the "new credit" might put you under theie new CC agreement which essentially states the jurisdiction of law will be the state that benefits C1 the most, LOL. What I can find in terms of my state is that I best leave the sleeping dogs alone (past SOL for Virginia.) This new billing strategy or the strategy to offer you a "new" line of credit seems to be an attempt to deal with SOL issues.

[debtprison]

My guess is that by sending you monthly statements, they hope you will send them a check for the monthly payment amount, and thereby re-age the debt, so they can sue you for it.

Well it sounds as if Capital One is about to get "The world's simplest C & D Letter".

Pretty lame on their part. I went back and discovered the credit limit on the original account was less than $200. Now they have it over $1,000. About +100% per year. Even if I had the money I wouldn't pay.