To remove Capital One Collections from your credit report, you must first find out who currently owns the debt. In other words, did Capital One sell your outstanding credit card debt to another collection agency, or is the debt still held by Capital One?
You can find out who owns your Capital One debt by requesting a copy of your credit report and checking the creditor listed on the entry. Visit AnnualCreditReport.com to download copies of your credit reports from each of the three credit bureaus. Due to the COVID-19 pandemic, you can request a free credit report every week until December 2022.
Steps to remove Capital One Collections from your credit report
If your debt appears as a charge, Capital One has most likely sold your debt to a collection agency and written it off as a loss. This means you no longer owe Capital One any money. Instead, you now owe the money to a third-party debt collector.
In this case, you want to follow the steps to remove a charge off from your credit report.
If the entry list is a collector or a delinquent, you will likely have to pay Capital One as a debt collector.
Here are the steps you can take to have debt collection removed from your credit report:
- Ask for a goodwill adjustment
- Pay to remove Capital One Collections entry
- Dispute collection
- Have it removed by a professional
- Know your collection rights
1. Request a goodwill adjustment
To have the collection removed from your credit report, you can contact Capital One and have a representative remove the collection out of goodwill.
You should write a letter stating why you were behind on the account, such as a job loss, and ask if the debt collector would kindly remove the negative entry from your credit reports with all three credit bureaus.
This will only work if you have already paid the debt and no outstanding balance is due.
2. Pay to remove Capital One collections
If you can’t request a goodwill adjustment because the account isn’t current and you still owe a balance, consider a payment deletion agreement instead.
With this type of agreement, you pay a portion of the balance owing in exchange for Capital One or the collection agency removing the negative entry from your credit report. This method works best if Capital One has sold the collection account to a third-party collection agency. That said, it’s still worth trying this method if Capital One still owns your old credit card debt.
This strategy allows the credit card company or third-party debt collector to collect at least some of your balance. Given the choice between receiving half of the balance and receiving nothing, most debt collectors will accept half. They may even be willing to remove their negative entry from your credit reports in exchange for the money.
You will need to obtain your payment for deletion agreement in writing from the debt collector before sending payment or starting a repayment plan. Otherwise, you may not have proof that the debt collector agreed to remove the negative items from your credit report in exchange for partial payment.
Make sure the written agreement states that all negative items related to your Capital One account, such as late fees, late payments, and missed payments, are to be removed.
If these steps seem too much for you to handle on your own, we recommend seeking professional help from a trusted credit repair agency like Credit Saint, a credit repair company.
3. Object to collection
In steps one and two, if you legitimately owe credit card debt that lowers your credit score. If you do not owe the debt to Capital One Collections because it is misreported, you must dispute that debt.
Disputing only works if the entry contains incorrect information on your credit file. You will need a copy of your credit reports from all three bureaus – Experian, Equifax and TransUnion – to complete this step.
Review the Capital One Collections entry on your credit report and verify that all information is correct. Check account number, balance due and payment history. If there is anything inaccurate in the entry, you can dispute it with all three credit bureaus. The credit bureaus will investigate the dispute. If they are unable to verify the correct information, they may delete it.
This method works because the Fair Credit Reporting Act requires credit bureaus and lenders to report only accurate information about your credit accounts. This law, enforced by the Consumer Financial Protection Bureau (CFPB), protects your credit report from credit report errors.
4. Have it removed by a professional
Professional credit repair companies remove collections from credit reports. The company mentioned above is an example of an organization dedicated to carrying out this type of service. Although you can try to remove it, a credit repair company saves the time and effort that it usually takes an individual to do it on their own.
5. Know your collection rights
Many people get frustrated when trying to settle their debt. Collection agencies contact individuals quite often, which causes unnecessary stress. Fortunately, you don’t have to put up with these disturbances. The Fair Debt Collection Practices Act limits the behavior of a debt collector as they seek to collect a debt from you while preparing you to negotiate with debt collectors.
Here are some examples of illegal actions taken by debt collectors:
- threaten to have you arrested
- calls you early in the morning or late at night
- communicate with friends, family or colleagues about your debt
- use the contact details you have asked the debt collector to stop using
- threaten to raise interest rates on your other loans or major credit cards
Inform the CFPB if a debt collector has violated your consumer rights. You can also complain to the Better Business Bureau at bbb.org.
Can Capital One Collections sue you?
Although collection agencies cannot arrest you, Capital One Collections or any collection agent can sue you in civil court. If you lose or settle the lawsuit, a judge will likely order you to repay the debt. At this point, Capital One could seek wage garnishment, which means the company could claim part of your paycheck before you get paid.
Most of the time, consumer debt does not reach this point because the company’s legal fees could exceed the amount of your debt. In addition, you get protection from lawsuits due to your state’s statute of limitations on consumer debt. Once the law expires, you are no longer legally responsible for the refund. In this case, you still owe the money and it may remain in your credit history, but the companies cannot successfully sue you for debt collection.
Statutes of limitations vary from state to state in the United States. Below are some examples of statutes of limitations from different states:
- New York State: Consumer debt status expires after six years.
- California: The status is four years.
- Rhode Island: The status is 10 years.
- Virginia: The status is three years.
You may inadvertently start your status all over again by discussing your debt over the phone or in writing. If a debt collector calls you, you shouldn’t accept responsibility for the debt unless you’re sure you’ll pay it off.
Why You Should Remove Capital One Credit Card Debt
Credit card debt lowers your credit score in the following ways:
- Use of credit: A credit card balance approaching or exceeding your credit limit will inflate your credit utilization rate, which includes 30% of your FICO score.
- Payment history: Normally, you don’t have a credit card that lands in collections without missing some payments along the way. These missed or late payments erode your credit score because payment history accounts for 35% of your FICO score.
Getting all of the negative information associated with Capital One erased from your credit history could help you unlock a better credit score. With better credit, borrowers access the best loans with low interest rates and fees. Highly qualified borrowers pay less to borrow money.
Removing your Capital One Collections credit report and your Capital One credit card debt could restore your reputation as a borrower.
You can contact Capital One using the following details:
- 1680 Capital One Drive
- McLean, Virginia 22102
- Phone number: 703-448-3747