Question

Hi everyone!  Please no judgement!Hi everyone! Please no judgement! I have a couple questions regarding charged-off accounts: Several years ago (2013 or 2014) I opened up a Capital One credit card. I maxed it out but was able to make payments each month. Unfortunately I lost the job that I was working at the time and could no longer keep up with the payments. So it eventually charged off. I would only be able to pay them if they are willing to settle for much less (balance was at $1, 018). It’s been a really long time since I received any letters from collection agencies and Credit Karma recently alerted me that it fell off of my credit report. So I checked my credit reports with all three credit bureaus and capital one is no longer on there. Which brings me to my main question- my husband and I are interested in opening up a joint Capital One checking & savings account. Considering my situation with them would they most likely deny us an account? And let’s say they do approve us- should we worry about them garnishing the account due to what I owe them? For reference I live in California (statute of limitations here is 4 years). I also want to say that I definitely understand that I’m responsible for that debt but haven’t had extra money to put towards that  Since it fell off from my credit report and the last payment date is past the statute of limitations- does that mean they can no longer hold me responsible for it legally?  

Answer 1

The statute usually only matters for litigation. Not necessarily for setting off your bank account. Your best best would be to verify with them directly.  

Comments

I will also say that if you’re making payments towards it (even $10 a month) that usually will keep them from drastic measures like setting off your bank account. You’ll also want to verify whether it has continued accruing interest since it became charged off.  wish you the best!  

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@examen Thank you. I find this all kind of confusing- it is a time barred debt. Don’t they need a judgement to garnish pay checks or to place a levy on a bank account?  

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@moreau to garnish paychecks yes - which they could not do because of the statute. But if it’s their own checking account, they do not necessarily need a judgement. It kind of depends on the lengths they want to go.  

Answer 2

I owed capital one from a while back for a similar debt. After a while, they allowed me to get a secure card, even though I still owed on the charged off debt. Now, I have a joint acct with my boyfriend. I am currently paying them like 5 bucks a month based on a settlement FDR reached with them before I found TBM, but I think you'd be okay. For banking, they look at a different report that looks at whether you have had trouble maintaining a bank account, whether some have been closed, etc.  

Answer 3

They will let you open an account. They can’t collect on the debt once the statute runs out.  

Answer 4

Don’t be so hard on yourself. A lot of us and are going through what you’re going through. I’m handling debt now that I didn’t pay on 4-5 years ago. We all make mistakes.  

Answer 5

I had 2 capital one accounts, both charged off at around 1100. I actually got another one last year, while making payments (to the debt collector, not cap1) on one, and the other is still on my credit report. I also live in California

Comments

@nitrate47 I see. What I thought was interesting was that my Capital One credit card has already fallen off of my credit report. I can’t find any information on it when I look at my credit reports from all 3 bureaus. But after digging around my bank statements it looks like the last payment I made on it was December 2017 (I first opened the credit account in 2013 or 2014). So if I’m not mistaken I haven’t surpassed the statute of limitations just yet but the capital one card isn’t even on my credit report anymore  I really want to open a checking and savings account with them but I feel worried about it being easier for them to pursue me for the debt owed if I have a bank account with them. But I also don’t really understand how likely that is when it’s not even on my credit report? It’s confusing to me lol.  

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@moreau opening a new account with them didny effect the collections, since they've already been sold to debt collectors.