Question about Capital One Charge off's and re-aging accounts.?

Question

I have an old Capital One credit card that was opened 12/7/2001. It was charged off in 2002. I dont remember when i made the last payment. I havent bothered paying it because i figured, its been or about to be 7 years already and it will fall off. Recently however, i received a letter from a collection agency stating my account had been sold to them as of 12/2007 and they are trying to collect.

My question is, has this account been re-aged and does that 7 years start all over again now?

Isnt it past the statute of limitations by now? What should i do? Im going to be buying a house soon and need to get rid of all negative marks on my credit report.

Im in Texas by the way.

Answer 1

Re-aging debt is illegal under the Fair Credit Reporting Act.

The Statute of Limitations begins to run when (1) the account went into default or (2) the last payment was made, which ever is later.  Credit card accounts are considered "open accounts" for SOL purposes.  If your state doesn't have a SOL for an "open account" look at what the SOL is for a written contract.

Answer 2

What you should do is be responsible and pay your debts.

***EDIT***

People like you have caused the economic problems we are currently in.  Scary you are buying a house right now and don't have the responsibility or ethics to pay what you owe.

Disgusting....

Answer 3

Ignore answers like Justbumin. What he fails to realize is that Capital One has charged this account off, gotten a tax break from it and then sold it to a collection agency for pennies on the dollar. Even if you paid this debt in full, Capital One would never see the money.

And besides, this debt is likely passed the statute of limitations, so why should you pay it? It's going to fall off your credit report soon, so it wouldn't even be worth it to negotiate a pay for delete agreement.

Check the link below to determine if the SOL has expired for your state. If it has, simply send this collection agency a cease and desist letter stating the SOL has expired.

http://www.creditinfocenter.com/rebuild/...

Answer 4

Derogatory items age off your credit file 7-1/2 years from the date of first deficiency.  This is per the FCRA and nothing restarts this clock.

The Statute of Limitations (SOL) is the timeframe to bring lawsuit.  This varies from state to state and the type of debt.  Generally, the clock starts from the last activity or last payment.  In some states, acknowledging the debt can restart the SOL.  Check here for the SOL in your state:  http://www.bcsalliance.com/statute_of_li...

Even if the debt is beyond the reporting period and the SOL, collectors can still try to collect.  They can hound you to the grave.

Get a copy of your credit report (AnnualCreditReport.com) and see what shows up.  You should really do this anyway to clean anything up before you apply for a mortgage.

If the debt is beyond the SOL, you can send the collection agency a certified, return receipt letter requesting they cease and desist all contact.  They have to stop.  But will probably sell the debt to another collector.  Just send the next collector another cease and desist.

Answer 5

YES! the statute of limitations differs from state to state. But the clock starts ticking when they write the debt off . I too have an old cap one acct that i defaulted on almost 7 years ago , and was shocked to see on my credit report that they are still charging interest and fees even though that acct was written off years ago. And they are reporting it monthly on my credit report . What was initially a 350 credit line has grown to over 2000 now , i do believe what they are doing is a violation. Do not under any circumstance claim the debt to the collector, if they contact you again , say you know nothing about this alleged debt and ask them to send you all information regarding this alleged debt. If you know for a fact that it has passed the time limit you can tell the creditor next time they call that the statue of limitations has expired and that they need to stop calling you then send them a letter in writing demanding they cease and desist trying to collect this debt, check out all this info on the FTC's web site . Also , you can file a complaint with the FTC . good luck to you , i recommend the book Debt Cures they don't want you to know about , its worth every penny .

Answer 6

It could be almost up but you may have a couple of months until the it reaches 7 yrs as of the charge off date. They may be trying to collect now b/c they also are aware of the limitations. They can however sell the acct to another collection agency and then they try to change the acct number so that it appears as a new collection acct. You will notice it due to the amount of the collection and this may affect your credit. I would suggest paying it b/c you do know that you owe it or if you are unable to just let it go and hope for the best.