Capital One
Charge-Off Reported After Partial Payments Counted as Missed

Along with many of you, I have had a rough job situation over the past few years. I was working full time, but in entrepreneurial companies, so I was not earning full-time pay.

I had several credit cards that I could not keep up payments on, so I signed up with Take Charge America credit counseling service (they are great, by the way). Capital One was one of the creditors, along with Bank of America, HSBC, Citibank, and others.

I got behind in payments. I tried to make some payments to all of my creditors, and I spread the pain evenly. The other creditors I mentioned acknowledged partial payments as at least some payment, and my outstanding amount owed never exceeded three months past due.

Not so Capital One. If they did not receive the full amount they considered was due, that counted as a full month late, even if I sent in a partial payment. I ultimately triggered what they considered to be six months late on my payments.

I now have a full-time regular-wage job, and have been making steady payments to all my creditors, including Capital One. I am in good standing with all of my creditors except Capital One, who has reported me to Experian as a charge-off.

I called Capital One to discuss this (you can too, if you're having problems. Email Richard Fairbank, CEO of Capital One at rich. Fairbank@capitalone.com, or call 800-955-1455). Nanette Black and Charles Mitchell of the Executive Response Committee both told me that, by federal law, if an account reaches 180 days past due, they must report it as a charge off. I told them that I don't doubt that, but my account reached 180 days past due only due to Capital One internal policies.

They told me there is nothing they can do. So I told them I would be writing blog posts like this, and that I would be contacting the Consumer Financial Protection Bureau, which I have done.

During the time I was behind in payments, I called them several times to make arrangements. They proved to be utterly unresponsive. So my advice to you: If you need a credit card, make sure it is not a Capital One card in your wallet.

Company: Capital One
Country: USA
Site: capitalone.com

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