Capital One is a common creditor that we encounter when helping consumers with collection matters and lawsuits. Capital One is one of the few creditors that rarely sell their debt to debt-buyers such as Midland Funding or LVNV Funding. Instead, they often pursue the debt themselves. Usually they first try to collect the debt via their in-house collection department. Then they send the debt to an outside collection agency such as National Recovery Systems or Transworld Systems. If both are unsuccessful then they send the debt to debt collection law firms in New York. The most common debt collection law firms handling Capital One collection and litigation in New York are Selip and Stylianou, Malen and Associates, and Rubin and Rothman. All three are large debt collection law firms.
Selip and Stylianou, Malen and Associates and Rubin and Rothman all follow a similar path when it comes to suing consumers on Capital One accounts. The biggest problem we see with these lawsuits is the frequent occurrence of default judgments being entered. Default judgment are most often the result of improper service. The service industry in New York is notorious at best which is why the term sewer service has become commonplace. If a default judgment is obtained, Capital One can levy bank accounts, garnish wages and even place liens on real property. The worst part is that the judgment is good for up to 20 years and judgment interest accrues during that time causing the debt to double or triple at times.
Preventing a default judgment if possible is the first and best defense. Submitting an answer with defenses will prevent a default judgment, keep the burden on the plaintiff to prove their case and keep the leverage on the side of the defendant. If a default judgment is obtained then an order to show cause to vacate the judgment should be filed immediately. This motion will stay judgment enforcement activity so that a bank levy or wage garnishment is not obtained. Once vacated, the case is re-opened allowing the consumer to defend themselves. However, in most circumstances it makes sense to negotiate a lowered settlement with Capital One since they are an original creditor. This means that it is easier for them to prove their case because they have not sold the debt to another creditor and usually have the original card agreement and statements linking the debt to the debtor. The good news is that Capital One is usually willing to come to very fair settlements with consumers when the type of leverage discussed above is applied. We are commonly able to obtain between 40% - 60% off of the debt as well as interest free payment plans ranging from 1-24 months with Capital One saving the consumer a good deal of money, cutting out all interest and preventing the risk of losing at litigation.