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RutgersAnthony

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Prison and Credit Cards. Unique Situation. Could use some advice.
Thank you ahead of time. I wanted to be clear and say I asked a question a month or 2 ago, and I didn't seem to get a very clear answer. I am this time offering up more information and I will copy and paste my details right into here.

I have 2 Credit Card accounts in question (Capital One and Wells Fargo) that I opened and was paying on time before I was incarcerated in August 2013. Automatic payments kept paying the accounts before we shut them off because I was going to do over 4 years.

Important to note, we did not tell either Capital One OR Wells Fargo that I was going to be incarcerated.

Furthermore, their efforts at collecting these 2 debts have been very minimal to practically non-existent to say the least.

Capital One has not attempted to collect whatsoever. No calls, no letters, nothing in almost 4 years. Have not heard a peep.

Wells Fargo sent a letter about a year ago asking if I would like to settle. I called them from Prison, told them I was in prison, they said they would move my file to a "Jail File." That is the last I heard about that.

I have some questions. Why aren't these in collections? Is it possible debt collectors who purchase these debts are aware of my incarceration and choose not to purchase this from Capital One or Wells Fargo? I have an old high school buddy who had a CC account get sent to collections and his wages garnished for $600...So I cannot see either company letting $5000 and $2000 (not including late-fees) slide respectively. Unless being in prison somehow provided me a shield from collections? Not sure, just speculating. Surely they would have a way of verifying that. My Credit Factors say I have "0" Derogatory Marks and my Payment History is 100%. How is that possible when I missed several payments on these 2 credit cards and they both are "Closed - Derogatory?"

My concerns are when I finally come home, will they be aware of my release and then come after me? Should I let this go? Should I break contact and offer them some type of payment? My hesitation with paying them anything is some of what I have read suggests that even if you settle it doesn't help your credit to an account that is already closed - derogatory.

Somehow, maybe because of my other credit cards on my account, my credit score is still relatively strong.

Thank you again ahead of time. I will check back in and if more information from me is needed I will add.

I have copied and pasted both Cards below:

Currently this is what is being read on my Credit Karma:

TransUnion says 727, Equifax says 719.

Credit Card Utilization High Impact
The amount of your total available credit that you're using. See details.
1% 1% >

Payment History High Impact
The percentage of payments you've made on time. See details.
100% 100% >

Derogatory Marks High Impact
The number of collection accounts, bankruptcies, foreclosures, civil judgments or tax liens on your report. See details.
0 0 >

Age of Credit History Medium Impact
The average length of time your accounts have been open. See details.
20 Yrs, 0 Mos 20 Yrs, 0 Mos >

Total Accounts Low Impact
The total number of open and closed accounts on your report. See details.
6 6 >

Credit Inquiries Low Impact
The number of "hard pulls" on your credit report for things like credit applications in the last two years. See details.
0 1 >



Last Reported Apr 02, 2017
Creditor Name CAPITAL ONE
Account Type Credit Card
Account Status Closed - Derogatory
Opened Date Jan 22, 2012
Closed Date Jun 08, 2014
Limit $5,000
Term --
Monthly Payment $0
Responsibility Individual
Balance $5,487
Highest Balance $5,487
Payment Status Collection/Charge-Off
Worst Payment Status Unknown
Date of Last Payment Jan 02, 2014
Amount Past Due $5,487
Times 30/60/90 Days Late 0/0/0
Remarks Charged off as bad debt
Canceled by credit grantor

------------------------------------------------

Last Reported Mar 23, 2017
Creditor Name WELLS FARGO
Account Type Credit Card
Account Status Closed - Derogatory
Opened Date Nov 23, 2011
Closed Date Jan 23, 2014
Limit $2,000
Term --
Monthly Payment $0
Responsibility Individual
Balance $2,407
Highest Balance $2,407
Payment Status Collection/Charge-Off
Worst Payment Status Unknown
Date of Last Payment Dec 17, 2013
Amount Past Due $2,407
Times 30/60/90 Days Late 0/0/0
Remarks Charged off as bad debt
Profit and loss write-off

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I would leave the accounts be, don't do anything with them, let them age off. I suggest that you do not have any further communication with the original creditors or debt collectors regarding these accounts. Paying them, either by settling or paying in full is going to do really nothing to help your situation, it would just make your pocket a little lighter. As far as them coming after you for the debt, look up the "statute of limitations to be sued for credit card debt in your state". It very well could've already expired. As far as the confusion on here saying that your payment history is perfect but with these negative accounts showing, just ignore it. Some type of Credit Karma error. Do some reading on the FDCPA (fair debt collection practices act) in case you get hounded by debt collectors when released, they have laws that they need to follow which they often times don't, they are not allowed to harass you.

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0 People Helped

Thank you for your reply, I do appreciate it.

The SOL in my state, New Jersey, is from what I am reading, 7 years. 

Furthermore, neither of these have been sent to any collectors. No judgements, no collections, nothing. I find that strange based on their amounts. Which is what is causing me to worry if they will pursue legal action upon my release. Almost as if they are waiting for my release to slam me. 

I mean, Capital One has not contacted me or anyone I am related to at all. Nothing. Just seems strange for $5000.

I am wondering why they haven't sent it to collections. Why legal action has not been taken and if it will. They are legally allowed to pursue me within 7 years? So anytime within the next 3-4 years I could be taken to court? It's that easy?

Even with these lingering on my report, I was able to get approved for a Discover Card and an AMEX card, albeit at high rates, But I pay the balance in full every month and have seen improvements and limit increases already in only ~6 months of use.

Top Contributor
7816 Contributions
1455 People Helped
Helpful to 1 out of 1 people

I believe that the "statute of limitations" in New Jersey for any type of debt contract is six years not seven. While I agree that five grand is a lot of money, it may not be worth the legal cost for them to try to recoup it. Just try to fly under the radar on these until the six years has gone by. Contacting them would only bring attention to it.

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