Charge Off - We'll Give You Another Card!
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Posted by Edward Riel on December 07, 2001 at 04:34:46:
In 1998 my girlfriend got pregnant and had a baby while I was still in college, as a result of which, I had to choose between reniging on my credit card debt, or dropping out of school. I chose the former. I knew I was judgment proof, so wasn't especially worried about being sued by collection agencies, but realized that it would be years before I would see a credit card again. Recently, looking to re-establish my credit, I began checking out secured credit card sites - most of the offers in the sub-prime credit card field were atrocious: 21% interest rates, exorbitant late fees, $100 plus annual fees, no grace periods, etc. Naturally, I was disheartened. And the, through the mail, came an offer from out the blue from the collection companies that hold my two delinquent credit card accounts: if I agree to let Capitol One transfer little more than half the outstanding balances on my delinquent credit card accounts to a new credit card, they will send word to the three major credit card bureaus that my delinquent accounts have been settled and payed in full. Moreover, the Capitol One credit card would have a 9.9% APR locked in until Jan of 2003, and there are no annual fees, and there is a standard 25 day grace period, as well. This is almost too good to be true, in my estimation. I have horrendous credit, and was intending to ride my 7 years out, but this does appear to be a generous offer. I've attempted to look it up on the internet, and have yet to find word of anybody else on bulletin boards or credit chat sites that have likewise been subject to such settlement offers. I can only surmise that this is a new type of offer and that since the 4 year SOL (in CA) has about tolled, the credit card/collection companies have gotten creative in order to recoup their costs? So, what I'm wondering, is this: has anybody else been offered such a settlement, and if so, is it as good as it sounds? I've intended all along to settle my debts and
do desire to re-establish my good credit. Any input at all would be appreciated. Regards, Edward
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