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I signed up with Colonial Debt Relief for $1200 to reduce my Capital One credit card bill from $8000 to $3200. They sat on m...

I signed up with Colonial Debt Relief for $1200 to reduce my Capital One credit card bill from $8000 to $3200. They sat on m...

Full question:

I signed up with Colonial Debt Relief for $1200 to reduce my Capital One credit card bill from $8000 to $3200. They sat on my case for months, so my account went to Capital One attorney, which they said they were going to garnish my pay to get the money. Col. Debt Relief gave Capital One attorney my checking account number, and they withdrew $1005 from my account without my permission to start getting some of their money back. What are my rights at this point?

Category: Debts and Credit
Date: 04/07/2025
State: Georgia

Answer:

You might:

1. Repay the debt (make a deal directly with the creditor);

2. File a proposal to creditors; or

3. File for bankruptcy.

Unfortunately, once a creditor has instituted garnishment proceedings, the garnishment is difficult to stop without filing for bankruptcy. Many jurisidictions offer certain property exemptions to a debtor which will protect the property from the collection efforts of the creditor. In order to claim the exemption, the debtor must file certain paperwork with the court and creditor notifying both of the debtor's intent to exercise the exemption.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How to negotiate debt settlement with Capital One?

To negotiate a debt settlement with Capital One, start by assessing your financial situation and determining how much you can afford to pay. Contact Capital One's customer service and express your intent to settle the debt. Offer a lump-sum payment that is lower than your total balance. Be prepared to provide documentation of your financial hardship. If they accept your offer, ensure you get the agreement in writing before making any payments. Remember, settlements can impact your credit score, so consider consulting a financial advisor.

How strict is the Capital One 6 month rule?

The Capital One 6-month rule generally refers to their policy of reviewing accounts for credit limit increases every six months. However, this rule can vary based on your account history, payment behavior, and overall creditworthiness. If you have consistently made on-time payments and maintained a good credit score, you may be eligible for an increase sooner. Always check your account details or contact customer service for specific inquiries regarding your account.

What happens to my credit if I use Freedom debt relief?

Using Freedom Debt Relief can negatively impact your credit score initially. When you enroll in a debt relief program, you may stop making payments to your creditors, which can lead to missed payments and a lower credit score. However, if the program successfully negotiates lower payments and settles your debts, it may improve your financial situation in the long run. It's important to weigh the potential credit score impact against the benefits of debt relief.

Does Capital One increase credit limit every 6 months?

Capital One does not automatically increase credit limits every six months. Instead, they review your account based on your payment history, credit utilization, and overall credit profile. If you consistently make on-time payments and manage your credit responsibly, you may qualify for an increase. It's advisable to request a credit limit increase through your online account or customer service if you believe you meet the criteria.

What is the disadvantage of debt relief program?

One major disadvantage of a debt relief program is the potential negative impact on your credit score. While you may achieve debt reduction, the process often involves missed payments and settlements that can lower your credit rating. Additionally, there may be fees associated with the program, and not all creditors may agree to settle. It's crucial to fully understand the terms and potential consequences before enrolling in a debt relief program.

What is the 6 month rule for Capital One?

The 6-month rule for Capital One typically refers to the timeframe in which they review accounts for potential credit limit increases. After six months of responsible account management, such as making timely payments and keeping your credit utilization low, you may be eligible for a credit limit increase. However, this is not guaranteed and depends on your overall creditworthiness and account history.