Consumer Protection Law
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Unfortunately, your creditor has the "upper hand" in this situation as they have the right under the original loan agreement to place the negative credit report on co-signer's as well as the primary borrower, and the payoff does not clear the report. Secondly, as they already have the money, it makes it more difficult to negotiate with them in order to reach a favorable result. However, you do have options available to you. The first (and most economical) is to continue calling until you reach an appropriate level supervisor or manager who can assist you with the credit report. The company does not benefit from placing a negative report on your credit and they have already been made whole, it does not benefit them at all to maintain the report. It is a reasonable position and a manager should be able to hold up their end of the deal you made at the time you paid.
If you are not able to get satisfaction in that way, it is likely that the credit agreement that you co-signed on originally had a dispute resolution clause requiring mediation or arbitration in lieu of trial. You can invoke this right and bring them into this dispute resolution format for their fraudulent misstatement in the settlement - you would not have paid if they had not misrepresented the status, and it is almost certain they would not have pursued so small a debt, therefore they would not have collected anything if you had not voluntarily paid.
she told me it was the federal law that it has to stay on my report for seven years, put me on hold to ask her supervisors, she said they told her the same. i told her since capital one could not help me clear this as asked i wanted it refunded and just make payments. she replied to call the credit bureau and see how much my score came back up with what they did before i went any further.
It is federal law that it cannot stay on your report for longer than seven years. A creditor can withdraw a negative report due to error or otherwise.
Asking you to call the credit bureaus is a fruitless task - these large agencies do not take calls from consumers to run theoretical changes to credit scores.
she said it had to be in error to be taken off. that there was no other way they could remove it. i feel like being held hostage on this. if i had been contacted earlier when he stopped paying i would have taken care of it then
i do have two more accounts with capital one. both in good standing. i thought about just going ahead and have them delete the two accounts. i know ill take a hit on the credit report for that also, but at this point i dont think it really matters.
The lender does not have to notify you at the time of the delinquency (this is a strange and pointless situation with co-signer liability, but it is the way it is). You may be able to use your additional accounts as leverage in this matter to negotiate a settlement with them. I would try to continue asking to actually speak with supervisors (and if necessary supervisors of supervisors) until you get a more favorable result - sometimes persistence will pay off.
ok ill keep on calling and trying, and use the other accounts as leverage. however i told her i would cancel out the accounts she replied that was another dept, she couldnt take care of that. do you think the other dept would look into this before losing the accounts ?
It is possible - you are dealing with an awfully big entity here. The higher up the chain you go the more likely you are to get a reasonable person to work with you. The fact that you were told that the delinquency would be removed from your account when it would not should play a factor. The bank never had an obligation to do so, but you should not have been told that they would.
ok ill give it a shot. thank you for your time and help.
You are welcome. I do wish you the best with this, and I hope that someone more reasonable is able to resolve this for you quickly.
If you have any further questions please let me know I am more than happy to follow up. Please do not forget to rate my service when we are finished with this chat. Best regards, Bill
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