What happens once your credit card is sent to a collection agency ???

Question

my Capital One card was sent to a collection agency.

Once it is sent to a collection agency can the balance still increase??

I thought once a credit agency has the account by law it has to stop increasing.

If it is against the law how do i get them to stop increasing it and go back to the amount it should be when they recieved this account???

Answer 1

The account balance can still increase. If you read the fine print on your card agreement you will find that you are responsible for their reasonable costs of collection. Usually a collection agency will accept less than the full balance for payment. Make sure you document everything precisely and get something in writing before you pay them. If you choose to accept an offer, make sure the payment is received before the offer expires. Pay the extra for pay by phone or western union. keep your records and ask how long before they will report it as paid to the credit reporting agencies. Follow up with experian Equifax and Transunion 60 days later. Go to annualcreditreports.com and pull your credit report for free. Then dispute the collection if it has not been fixed. Once you are in collection, it will show on your report that you were in collection. even if you pay it off. You MAY be able to negotiate that they remove the collection if you pay them off, but they will not always do that.

Also remember whether you pay ten cents on the dollar or 99 cents on the dollar, it shows on your credit report as " paid for less than the full amount"

Alan

Answer 2

Once in collection, they may charge a collection fee. Make sure you start paying it.  If you fail to pay a judgment for the amount will be issued.  You will either have to go to court and pay court costs or settle for the amount you owe, and agree to pay it.  Believe me, I had Capital One and this happened to me. Also, in some states if you have a judgement and make good income they can keep your paychecks to pay what you owe, or come in your home and take any assets you own for collateral. Only in some states though. So if you don't want to find out whether or not this will happen to you, then start paying now. I got a judgement and it's not fun.

Answer 3

you credit score goes down and you have problem purchasing new cars and a house.  Plus other expensive stuff through credit

Answer 4

First, there is no such law.  In fact, the terms of your contract continue.  You rack up additional interest, late fees, and various collection fees.

Secondly, Capital One has it's own collections dept.  They also are being much more aggressive about suing for smaller defaulted accounts.

It would be in your best interest to negotiate a settlement.  depending on how old this debt is, you might be able to settle for less but it would have to be a lump sum payment.  Don't expect any big discounts.

Get any settlement agreement in writing and don't give the collector direct access to your bank account.

Answer 5

Big deal hey?  Dont sweat or loose sleep, just move the chances they have of finding you are about zero.

Answer 6

it can still accrue interest while with a collection agency. once the account is written off, most time interest stops accruing.

if you sign up with a credit counseling agency, they  can contact the collection agency and make an agreement to stop the interest accrual.