How to Negotiate Debts with Capital One Bank
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How to Negotiate Debts with Capital One Bank

[MUSIC] Hi there, I’m Michael Bovee with, and thanks for tuning in to
our YouTube channel. Today, as part of our focus on
how to deal with each individual bank that you might struggling
to keep payments current with, we’re gonna talk
about Capital One. Capital One is unique in and
of itself as far as the size of credit card issue
where it is in the US. For example, they are probably
the most active quote, unquote subprime credit
card issuer out there. Back when we had our recent
recession a few years ago, credit card banks saw their most
dramatic default rate ever. And a lot of the subprime
issuers were the ones that saw the worst, and they folded up
and got absorbed by big banks. And there really hasn’t
been anybody to step into their shoes. Capital One is
an exception to that. They issue a lot of
starter credit cards with lower credit limits,
maybe higher interest rates. They issue credit cards to
people that are trying bounce back from negative credit,
that kind of thing. So they’re really cool in that
way, and then they’re not so cool in other ways for
the folks that fall behind. So let’s talk about that. When you’re dealing with
Capital One, and let’s say it’s the only account you’re
struggling with, that’s great. Reach out to them direct or resolve the account
with them directly. The more accounts you have,
though, credit cards specifically,
you wanna maybe talk with a credit counseling agency
first, a nonprofit. There’s over 100 of
them nationwide. You can call the hotline on
the screen and press 1 and get connected to the largest, oldest national nonprofit
credit counseling agency and talk about how you can get
your payments reduced for all of your accounts
consolidated into one. But if you’re just
dealing with Capital One, you can usually handle that
on your own, and here’s how. Calling to Capital One while
you’re current isn’t gonna go much of anywhere productive
as far getting some kind of reduction from them,
monthly payment reduction. But if you’re just even
a week late and you call and talk with a representative
at Capital One, they know that you’re late. They see that and they’re gonna
treat your account differently than if you haven’t missed
a payment to them yet. Let’s say your balance is 5,000
and you’re gonna be short, or have been, and haven’t made
your minimum payment for a few weeks or
even a couple of months. They can talk to you about
hardship plans that they have where maybe it’s 3, 6, 9, 12
months long and you are able to stay on that reduced monthly
plan for that period of time. And when you come out of it,
you’ll be back to the interest rate and
minimum payment that you were. And by the way, that is how
they accomplish a lower monthly payment, is that they’re willing
to reduce your interest rate, whether it’s temporary or
long term. That’s how they work with
the credit counseling agencies, the long-term plans. You can sometimes still get,
in certain situations, a lifetime of the balance
repayment plan, lower repayment plan, that will
not go beyond 60 months, or 5 years, they can’t do them
longer than that, on your own rather than having to go
through a credit counselor. I just don’t see them as much
with Capital One anymore, so be aware of that. The types of monthly payment
reductions that they’re gonna give you are typically gonna
be for a short duration. Now what if you cannot
even pay your minimum, or even a reduced
monthly minimum, from Capital One and
that’s gonna be the way it is? In other words, stuff has
happened so negatively in your finances that you’re gonna not
be paying them for many months. Sometimes you look forward and
you’re not gonna be able to pay them because you’re out of
work medical-wise, laid off, still looking for work,
exhausted your savings. And something’s gotta give and the credit card payments
are finally gonna give. Long-term looking and planning to resolve Capital One
account is important. Why? Because currently Capital One is probably the most
litigious credit card bank in the United States,
and have been for some time. I think they file the most
credit card lawsuits in Hampton County Minnesota,
Cook County, Illinois, Minneapolis, Chicago. They sue a lot and they sue, I’ve seen these just
recently, for $400 dollars. As little as $400 will trigger a
lawsuit from an attorney working for Capital One. So knowing that, you should be
targeting them for your earliest opportunity to save up money,
whether you’re saving it up monthly or tapping a resource,
selling that ten speed in the garage you haven’t ridden
in ten years, whatever it is. You come up with the money and
you can reach back out to Capital One and look to resolve
the debt through negotiation. When you’re calling them,
we cover negotiation, by the way, quite a bit on our
YouTube channel and a ton on the
website. I’ve got a couple of pages
up that are dedicated to settling with Capital One at
different stages of collection. But when you reach out to them,
they are going to look for reasons why you’re
unable to pay. So whatever it was that led
to your inability to pay, does that condition still
persist, has it gotten worse? Oftentimes people
that negotiate and settle are borrowing
the money from family and friends to do it in
the first place. And be transparent
about all that stuff. The worse it is to be you
financially, the more damaging it is, the impact of whatever
it is you’re going through and the need to borrow money even. That’s the kind of
stuff you share. The stuff that makes it good to
be you, it was back then, it was two years ago and I fell behind
and I couldn’t pay and now things are great, got a new job,
I’m calling to resolve this. You’re not gonna get
much of a settlement. So focus on the things that make
it hard to be you financially, and don’t go into
details of anything that talks about you bouncing back or
any kind of credit goals or credit reporting goals or
anything. That’s just a tip of the hat
that they should hold out and get as much money
from you as possible. And once an account has gone,
say, six months past due, the credit damage is done. You’re not gonna get
any brownie points for paying something back in full at
these inflated penalties, fees, interests, amounts
on your credit. So ideally, at that stage
with the damage done and with the inflated balance, trying to negotiate the lowest
pay-off you can is a good idea. Here’s an issue though. When you’re settling
with Capital One, and it’s been this way for
many years now, your realistic targets
are typically gonna be half. They don’t really settle for
less than 50%. Let’s see, it’s December 2015,
I think I saw one settlement on a Capital One account that
was under 50% this year. I see a lot of them. And or even last year,
if memory serves, one, and it was a really old account,
like five, six years old. So if your account isn’t that
old, you have no shot likely of getting under 50%, and I don’t
care who’s collecting on it. It could be with Capital One, it
could be with just a regular old debt collection agency
that they work with, or one of their collection
attorneys that they work with. Your targets are realistically
gonna be half. Sometimes you won’t
even get half. Sometimes they
won’t go that low. Sometimes they’ll go to 60%. You could call Capital One, and
you could be five months and two weeks late, and they’re getting ready to charge
off the account, in other words, take a loss on it, and
you can’t get any settlement. There are situations where
Capital One just flat out will refuse to work with you. There’s kinda criteria
that I can cover, or I can cover on a consult
if you wanna call me, or you can type in the comments
below about your issues. If they did refuse it, I’ll ask you a couple of
specific questions and we can get to the bottom of why. But don’t think that you’ll
never be able to settle it, just because they wouldn’t at,
say, five months and two weeks. They will often
approve settlements or you’re kinda pre-approved. If they send it to a collector
or an attorney for collection where negotiating
at 50% with those guys is probably more likely to happen
even though Capital One wouldn’t do it with you directly. So a couple things, now that you
know kinda the lay of the land and what kind of
percentages to target. And by the way,
don’t speak in percentages. Speak in round numbers in and
around 50%. Go lower obviously. If they come back at 70 or
60, and you say I don’t know, I can’t do it. Call them back in a few days and jump your offer up
closer to that 50%. And that’s sometimes
how you negotiate, which again we cover on other
videos and on the website. When you’re dealing with Capital
One and you need something done on your credit report,
this is unique to them and something really should
be done about it. I haven’t seen any
news about this and I haven’t seen any kind of
regulatory updates to this. But Capital One, when you
settle, will sometimes, and sometimes not, still report
a balance owed to them. So let’s say, for example,
you have a $5,000 account and you settle it for $2,500. It’s all documented, you’ve got a letter on
Capital One’s letterhead or the debt collector, and
it says, hey, you owed us 5 and we’re agreeing to accept
2,500 as payment in full. And this debt is settled as long
as payment’s made by such and such a date, you get it
in there by that date. Everything’s good. Everybody agreed to this
whole thing, and yet they’ll still report $2,500 due
of the portion that was unpaid on your credit report, and
it can be a bear to get off. And then I see them not do
that in other instances. So be careful of
your expectations on credit reporting. They are the only bank
that I see do this. Every single other one
follows through and reports a zero balance
owed once you’ve settled. So stay tuned for updates on
that, but I wanted to make sure that you were aware of that if
that was one of your goals was to negotiate and
get it to show a zero balance. Thanks for
tuning in about Capital One, and I’ll look forward to
you on the next video. [MUSIC]

41 thoughts on “How to Negotiate Debts with Capital One Bank

  1. Thanks for the video. Cap One is one of my creditors. I'll be dealing with them in the future, along with Synchrony Bank and WebBank. Laid-off from my job 6 months ago and went through the Unemployment Insurance. Forced to early retirement so I'm on Social Security.
    Your videos help me see what I'm up against.

  2. Be careful with settling Capital One after they've sued you. They will try and trick you into signing an affirmation of judgement when you think you are settling. You need to make sure it's a settlement, not a judgement.

  3. First of all, Michael Bovee…. YOU ARE AWESOME! Thanks for sharing all of your expertise with the world! I have done my research, I have a pretty solid understanding of what I am up against right now..
    Capital One is being extremely difficult! I am at 160 days w/ CO on about 4/20. This is my smallest debt owed & 1 of 3 creditors on my list to settle with. I have already settle one at 35.6% (I was excited about this one! Took a lot of back & forth. I have been working them for over a month now)
    Anyway, Capital one is my lowest amount owed (5,200) and they are being the biggest A-holes!! They have offered to settle w/ me for (4,995.) What a joke! I called back weeks later and that offer went unchanged! In fact, the guy was clueless. After I gave a brief explanation of my story AGAIN… the guy asks if I would like to pay it off IN FULL today over the phone! Really!!!!??????
    I really don't want it to CO, but it sounds like it might have to get to that point just for them to give me MAYBE 50%? Not sure if right before the CO if anything will change? I am actually pretty p'd off, this was not what I had anticipated. All I can say is that Capital One SUCKS for settlement!

  4. I have a question. I know that we had a conversation about Capital One and their lawsuit time frames. I just received an e-mail, saying that my account will be charged off in less than 60 days, the account will close, I will be responsible for the full balance etc. They threw out the terms lawyer and law suit (obviously a scare tactic at this point). May 19th will be my 6th payment missed. My questions are:

    1.) Does the account get closed 30 days after the 6th missed payment?

    If they do wait until 30 days to "Charge Off" the account, that would put my Charge Off date to June 19th, 2017. This would mean that as of June 20th, I could technically start negotiations, correct?

    2.) As long as I maintain contact with after Charge-off I have until about to September to achieve a settlement with them, correct?

    I am just trying to solidify my game plan when I call, and know what my timelines and deadlines are as far as having the money ready to settle.

  5. Thank you for your help. I regret the day I got Capital One. I owe them $2122. The card is charged off ugghhh. Everytime I call cust service it goes to some law firm. I am going to settle with them and keep my fingers crossed that this is over and done with. This is only unpaid thing on my credit report uggggh. You think i will be ok Michael?

  6. Hi Michael, between my wife and I we have 4 Cap One accounts for a grand total of approximately $19K. The oldest one is four cycles late and 110 days past due according to the representative I spoke with today. I believe you said the sweet spot for a settlement with them is 150 – 180 days past due. I know I am still a bit early, but they said that "There was no settlement option available for my account at this time". Is this to be expected? I was hoping they would have made some sort of offer and we could have started negotiating from there over the next month or two.

  7. You videos are so GREAT! Very informative, thank you for putting your channel together!

    I have 4 CapitalOne accounts (about 2k each). When I log into my CapitalOne online account all 4 are listed, and I manage all 4 accounts from the same online login.

    My question is:

    If they all go to collections, are they treated as 1 account? Or 4 separate accounts?

    Would I be dealing with CapitalOne for one settlement on 8k, or 4 settlements of 2k?

  8. I missed a payment last month now my minimum payment has gone up from $74 to $175 with a new balance of $2,370.02 and no available credit. My second card with Capital One has a minimum payment of $143.00 and the current balance is $4,902.73 with $37.39 available credit. I only have $329 in the bank. I just don't know what to do at all anymore. Should I try to make the payments or just sit back and wait for the lawsuit?

  9. I had an account with Matco Tools who reported late payment charges and the account balance was waived by the credit department. A letter from BBB states the balance was waived but reporting late payments will continue.

  10. I have had previous experience with Capital One, and want to know why they are so difficult to work with. I am currently trying to collect PPI on the account, and have found (through a court judgement) that they have been collecting 75% – 80% commission on this, another credit card I had at the time paid up no problem (Barclaycard).

  11. how i deal with my payments, i get my apr reduced for 7 months after that i call again and it will be for another 7 months

  12. i have car loan with capital one,i am now gonna be able this month to pay montly so i am gonna get repo from them , capital one gonna sue me or they gonna sell debt to collection agency. i am upside down with loan so i am gonna owe for sure…. other question i am also in credit card debt so when is right moment to start debt settlement before car repo or after?

  13. Hey Mike, I'm currently current with my Capital One Credit Card Account with a balance of 2,700 but at the 30.65APR rate I can't afford the $95 monthly payments anymore. I called them up to try to lower the interest but they said at this time they can't but try back in the future. I then asked if they could put me on a balance liquidation program or hardship program or anything that could help me….they connected me over to an account specialist who asked what monthly payment amount i could afford I told him I would be ok with $40 per month, he came back after a brief hold and said $40 would not work but asked me would for say $55 to $65 work?, I told him it would be tough but better than the $95 I am currently paying, he then put me on hold for about 5 minutes only to come back and say he tried but at this time he could not do anything for me. He did say if I was concerned about late fees in the future, he recommended closing the account so I would not get any late fees in the future if the account was closed. I decided I didn't want to do business with Capital one anymore anyway so i told him to close the account, this way in the future if I am late I will not get the late fees. I guess my only concern is ….with this being now a closed account does this make it harder or easier or no difference negotiating with Cap1 in the future if I do fall behind or even go into default or chargeoff….I am guessing they didn't want to work with me because I am current. Ideally I would like to settle with them for either a lower monthly payment plan or a balance reduction. What would be your plan be if you couldn't afford the $95 per month anymore…Settling for say 50% of the balance would be an option but that money wouldn't be available to me until next year this time say march 2019 when I get my next income tax check.Please advise and Thank you for all you do!!!

  14. Hi there. I'm currently trying to negotiate a settlement with Citibank on my credit card. I'm going through a divorce and my income has been cut by 70%. So I've been unable to pay on this credit card. My balance is approximately 12k. Citibank has been calling me but until this past week, I've ignored their calls. I'm expecting to get some extra cash in a few months from the estate of a relative that recently passed. I'd planned on calling them at that time to try and settle my debt. But this past week, they sent me a letter offering a settlement of about 5k of what I owe. I can borrow money from a relative to pay that now. However, the letter also said this would be reported to credit agencies as "Settled – Paid less than owed". From the research I've done online, that statement on my credit report is almost as bad as having a bankruptcy on my credit report. I've also read that some borrowers have been able to negotiate a settlement where the creditor reports it to the credit agencies as "Closed – paid as agreed", which shouldn't impact my credit as bad as a bankruptcy or the use of the other language. However, I've also read that Citibank isn't likely to do that for me, even if I agree to the settlement amount they offered. I'd like to purchase a home within the next year or so. This will likely be the only negative mark on my credit among many other positive credit histories. Do you have any advice for me? Do you think I can get them to report it as "Closed – paid as agreed"?

  15. Thank You for all your great videos. They are so informative and help us DIY people have a little more confidence.

  16. I had a Capital One debt that was pre-negotiated for 79% roughly a year after, then for 53% roughly 2 years after, and a few months later, was pre-negotiated for just 39% of my original debt — which I paid for.

    Your videos are really good and have helped me out.

  17. I have 3 different Capital One accounts that are right at 5 months late. I have been gathering up funds to settle with them. How should I proceed when there are multiple accounts with same credit card company?

    Capital One 4275
    Capital One 2365
    Captial One 2700

  18. I defaulted with capital one, after 7 years when it is no longer on my credit report, can I get a secured credit card with them?

  19. My husband has been sued by Capital One. The amount owed is $3462 and the attorney said they will settle for $2275. This account was charged off 2 years ago but still in the SOL in Georgia. The wording on the letter from the attorney does not sit well with me. It states the amount that they will accept but doesn't say that it will be considered paid in full. Please Advise! Thanks!!

  20. Hardship p[lan? When did they start that? I begged them and they told me to go F myself on a 3/4 a month plan? All they did was double until I could not pay.

  21. I have a credit card debt with capital one of $812 may 9,17 was my last payment I ever did. Can I get a debt settlement from them for 50%

  22. Hi Michael,

    We spoke today, and I forgot to ask one key question that will probably be instructive to anyone trying to settle debt.

    When trying to determine when you should begin dealing with your creditor, (you mentioned day 151 for Synchrony, day 181 for CapOne, etc.), should we count from the date of the last payment we made, or the date that the account first became delinquent (the day after the first bill was missed)?

    Thank you so much for what you do!

  23. I had two cards from Capital One. One for $3000 and another for $5000 both went to collections and the $3000 card I settled for $600, but the other is like pulling teeth trying to settle.

  24. I have 2 cap one credit cards. One I have a zero balance on never been late and paid in full every month. Now my other cap card i owe 6500 to. I don't have the cash this month to make the minimum payment what should i do?

  25. Hello, I am in a situation where I will no longer be able to make my line of credit payment (65,000) and my credit card (26,000) payment. What should I do?

  26. Here is one for you, I am over 200k in credit card debt and have been out of the US for three years and I plan to return soon. As far as I know there are no judgements against me and my credit has been frozen for over two years. I am on Social Security so I do not need a job, is there any way the creditors can go after me in a criminal or civil case?

  27. Hi Michael. My debt from Capital One was purchased my Midland Funding. Capital One sues the most, but since it was purchased by a debt buyer, does it mean the chance of sue is less riskier? Thanks.

  28. Hi Michael thanks for your great advice. I’ve been reading through the comments but I am unable to find the answers to my concerns. I just got sued and they froze my savings. But I see no point in paying debt that will remain poorly on my score for the next few years. I’m young and it’s not a large sum, ($3600) how do I settle this or come into an agreement so that I am able to fix my score within the next two years? Any advice is appreciated

  29. How long should I wait before I’m behind to contact capital one? How long before I attempt negotiations?

  30. Hi Michael,
    I am going to list my creditors below. There are quite a few of them. I am behind on every one of them. Keep in mind, most of my accounts are $1000 or less. I will also mention if they are charged off or not. What I am wanting to know is which ones are more likely to sue me quickly once the account is charged off. which ones off the best settlement offers. Which ones will let it sit a while and which ones will send it to collections immediately. I understand that it will be approximate because things can change quickly but just trying to figure out really which ones to be the most concerned about atm.

    The following are charged off: Walmart, JC Penney, Toys R Us, Fingerhut and Bank of America. They charged off within the last 45 days. I havent heard nothing from any of them.

    The following are late. Most are late by at least 90 days: Mercury, Capital One, Applied Bank, Avant Credit Card, Fortiva, Dell Financial Services, First Premier, Continental Finance, Credit One, Merrick Bank, Chase and Seventh Avenue.

    I appreciate your time in this. I love listening to your channel.

  31. With Capital One I owed them 650$ and I stilled it for 400$. They still report 250$due. I am struck. Should I disput it with Experian ?Please sajust me with a solution .

  32. Michael I have a capital one card for 16K that I can't afford the $400+ payments monthly due to loss of employment. I just got a new job but I am 2-3 months behind already and I won't be able to catch up on that. To bring my account current they want the entire past due balance paid at once which is impossible and they aren't willing to do anything else. Should I just wait until I hit 6 months past due and give them a call? I tried everything witb them so far and no luck. I also have another card for $1700 witb them but I'm paying on that as normal. It won't hurt me that I'm paying my other card will it? Thank you

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