NCO Financial - Capital One ripoff Overcharging and Harassing phone calls Horsham Pennsylvania

OK to start people just dont understand how credit cards work. I worked for NCO for 4 years, representing Capital One. I have read all the complaints regarding not only Capital one and their fees but also about the NCO Collectors, I for one along with 190 colleagues do not threaten yell at, demean or are rude to the card holders. sarcastic, sometimes yes.
Card holders make it seem like we are out to get them and make their lives a living hell. On the contrary, we try to help them from falling further into debt, but most dont give the chance and hang up or lie and say they dont live there, so let me start with the Basics

You get a application to apply for a credit card. there are TERMS & CONDITIONS with that application, however no one ever reads them they just want a credit card.
Then when the bill comes you dont follow the Terms & Conditions and that is when it all starts. Most cards have 2 dates on them one a due date the other a cycle date (which is when you get your finance charges and Overlimit fees)
So you get your credit card with a $500.00 limit. and 9.9% interest.

You go shopping or have your vehicle repaired all to the tune of $465.00
your bill comes in and your minimum payment is $17.00 . You say oh well I will double up next month. BOOM $39.00 late fee. so now your balance is $504.00 now you are Overlimit. on your cycle date you recieve your finance/intrest charges of $ 20.96 and dont forget your $39.00 overlimit fee.
so now you have a balance of $563.96 this is almost $100.00 more than what you spent on the card. who's fault is this? Your right the card holder for not making the $17.00 minimum monthly payment.
So you have signed a contract that you did not read. and you don't make your payment in full or ontime , you dont leave enough room on the card for your charges (late fee, overlimit fees, and finance charges) that you agreed to when you signed on the dotted line, and Capital one and NCO are ripping you off? explain to me how.
Capital One provided you with credit. Only you are the one that can ruin it.

She was in debt management like 6 months. It was $29.95 or 99 times 3 not two. But promises were made and kept getting broke. On thier side. She was trying hard to pay it off. After about $1500 payed on the account and it never going down I said enough is enough. Its like throwing money into the wind for a company that won't close the account. Is keeping it open so they can charge the extra fee's. After I talked to them one day they said they had no record of recieving a dime from us. But I kept all records. I never seen a debt collection company or bank go to such extremes on anyone as they did my wife. The truth holds the same for banking companies. Check out thier morality 1st before trusting thier a good bank. Signs are if they are offer free checking or gifts to lure you in thier will be alot of hidden stuff in the fine print and on pages you'll never see because they reserve the right to make changes at thier own will. Thier interest rates will be high. When picking a bank be careful. They may not stand behind you when you need thier help. These banks have a tendency to play with your money loosely and make alot of bad bank judgement calls and you pay for thier mistakes. A good bank doesn't let these so called bad moral types get through to were they can mess things up. Douglas don't ever blame the people for bad descisions. Things happen. Its the banks responsibilty to pick good clients. Thier the professionals trained to know. I've ran into all kinds of unfair practices especially were you get caught in a mistake signing up for something online then have to pay the penalty because a company took money unauthorized. The bank shoved it off on the customer instead of protecting the customer. Especially were you have all your bills figured out and payed. Then suddenly you have an overdraft and can't come up with the money that day or next day but till you get your next check. Old days if you had insufficient funds it got kicked. Sent back to the original person to collect. Bad bank practices is to blame. Puts people in positions were they can't catch up. Thier is no limit on charge off for the card. Almost 5 years they still have'nt charged off the card. Still adding up. An open account. I imagine if Capital One and NCO Finacial were investigated you'd find alot more illegal action because they don't follow the rules that apply. Thier fine print is the clue. We may change these rules at anytime without notify you 1st in writing. The key to a fruadelent banking company.

Nobody has wondered how long Ken's wife was in the debt management program. $900 paid at a rate of $20/month (avg for these places) is like 4 years.

Even worse, since payments are being made, the card never gets charged off for all that time so Cap One can still legally charge over-limit and late/below minimum payment penalties with the interest. (Once a card is charged off, only interest can be charged)

$29.95 X 2 = $59.90 x 49 months is $2695.50 is fees (give or take) and this isn't even counting the original balance or the APR on the account.

Basically, what I'm saying is that it is very possible that a card with a $300 balance can skyrocket up to $4000-$5000 within 5 years even with payments being made every month.

Ironically, if you didn't make any payments at all, the card would've been charged off after 7-8 mmonths of no activity and would have only shot up to $1200-$1600.

As for dealing with a collection agency, I've worked for some in the past (some legit, others not so much) and in a case like this, you have to act more based on the type of person you are before factoring in the type of agency you're dealing with.

What type of person are you?

Some people take the moral high road and pay what they owe (balance + interest + penalties) they understand that penalties and interest are unfair but also understand that they signed a contract that stated that if payments were late ,less than the minimum, or if they went over their limit they agreed to pay these fees.

Most people go down the middle and settle for what they would have paid if they had bothered to make the payments on time (balance + interest) Most collection agencies will settle for this amount which is generally 60%-80% of the balance they have on file.

Some people take a moral short cut and pay only want they want to (balance) and make excuses for the rest (because they think were ripped off, penalties are unjust, etc)

Others don't pay anything and some even convince themselves that they are right for doing so. Don't get me started on these people, they are just as bad as the worst of the collection agencies.

That is all up to you.

If you decide you want to pay your bill, you need to first decide how much you want to pay and go from there. Try to settle if the amount you want to pay isn't the full amount and cover your butt 100% of the time when dealing with a collection agency. Get all agreements in writing before making your payment, send all payments and mail via ceritifed delivery, and hound them for a receipt after payment is made (just don't expect one).

After you've paid what you feel you owe, keep your records and proof of payment safe and ignore everyone else who tries to collect on the same debt for the rest of time. If you ever go to court over it (very rare) bring your proof of payment and explain that the bill was paid and there is a mistake. You will not lose this way.

If you've decided not to pay, get an unlisted phone # and just be willing to change it as often as necessary. If you keep your head down long enough, you'll get away without ever having to pay a dime.

Just remember though, if you go that route, you should forefit your right to complain about getting ripped off. See, morally speaking, by not paying back 100% of what you owe, you're doing the ripping off. Don't worry though, it's the rest of us that end up paying for it, with higher interest rates, tougher loan/credit qualifications and higher penalties.

Good luck.

Steve, I wasn't "correcting" you -- I was agreeing with you. All I was doing was clarifying to other readers -- many of whom are probably unfamiliar with how to calculate monthly interest based on an annual percentage rate -- that the $116 amount you mentioned was an annual amount, not a monthly amount. That's all.

As for what Ken wrote, you yourself even asked Ken where he came up with his numbers, as did I.

ps. It appears that Ken's figures have nothing to do with interest but with fees. Unfortunately his lack of understanding of how to read a credit card statement has led to a lot of confusion.

Jennifer,

Before you jump in and correct someone, you should have your facts straight.

Ken never said 30% APR. Here's his exact words:

>>"30 % incrued interest on $389.52 is what? $29.95 TIMES 3 which is what they charged 1st month".

AND, I figured it BOTH ways. Straight 30% AND 30% APR. I did not ASSUME what he meant.

You should re-read the post.

Look up federal laws on fair debt collection.
What can you do if you believe a debt collector violated the law?

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney' s fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector' s net worth, whichever is less.

Where can you report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General' s office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General' s office can help you determine your rights.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad

The $29.95 x 3 was my exact question? Every month it showed $29.95 being added on. After reading thhe statement today 1 was over the limit fee, the 2nd was a late fee, and the 3rd fee if I'm reading right is some kind of penalty fee. But that is now $39.95 x 3. The interest charge 1st month was $12.98 with the following month showing $15.98. the 3rd month shows interest charge added $19.98. So each month it went up. I'd say they were charging 30 percent interest on each months remaining balance. The latest was after we sent legal notice according to federal law stating we don't deal with debt collectors but will only deal with capital one since they are the one we owed. I'm assuming that legally under federal laws debt collectors are actually illegal but not an enforced law. Last call NCO Financial posed as Capital One.

The $29.95 x 3 was my exact question? Every month it showed $29.95 being added on. After reading thhe statement today 1 was over the limit fee, the 2nd was a late fee, and the 3rd fee if I'm reading right is some kind of penalty fee. But that is now $39.95 x 3. The interest charge 1st month was $12.98 with the following month showing $15.98. the 3rd month shows interest charge added $19.98. So each month it went up. I'd say they were charging 30 percent interest on each months remaining balance. The latest was after we sent legal notice according to federal law stating we don't deal with debt collectors but will only deal with capital one since they are the one we owed. I'm assuming that legally under federal laws debt collectors are actually illegal but not an enforced law. Last call NCO Financial posed as Capital One.

The $29.95 x 3 was my exact question? Every month it showed $29.95 being added on. After reading thhe statement today 1 was over the limit fee, the 2nd was a late fee, and the 3rd fee if I'm reading right is some kind of penalty fee. But that is now $39.95 x 3. The interest charge 1st month was $12.98 with the following month showing $15.98. the 3rd month shows interest charge added $19.98. So each month it went up. I'd say they were charging 30 percent interest on each months remaining balance. The latest was after we sent legal notice according to federal law stating we don't deal with debt collectors but will only deal with capital one since they are the one we owed. I'm assuming that legally under federal laws debt collectors are actually illegal but not an enforced law. Last call NCO Financial posed as Capital One.

Steve, you mentioned that 30% of $389.52 is $116.86. I just wanted to clarify that since 30% is the ANNUAL percentage rate, the $116.86 is the amount of interest that would accrue IN A YEAR, not monthly.

That is assuming that the balance stays exactly the same all year, of course. If the balance is $100 for some months and $400 other months, for instance, the amount of accrued interest will vary accordingly.

This is a simple calculation I always use to guesstimate how much the monthly interest might be:

Divide the balance by 1200, then multiple the result by the APR. This gives you an approximate amount of monthly interest based on that particular balance.

$389.52 / 1200 = 0.3246 x 30 = $9.74/month interest

That is how I determined the $10/month interest on $400 above. $400 (div) 1200 = 0.3333 x 30 = $10/month interest

I have no idea where Ken was getting $89.85/month ($29.95 x 3).

Anyway, just wanted to clarify that, in case anyone else reading this thought Steve was saying that the interest on $389.52 is $116.86 MONTHLY (incorrect) instead of ANNUALLY (correct).

You don't have all the facts so really have nothing to base your judgement on. Capital One actually sold the account after it was default 90 days. NCO Financial picked it up as a debt collection agency. Debt collection agencies and debt management programs both never work cause they never give you a reasonable way to pay it off.

Meanwhile Capital One has already been re-inbursed through its insurance. All banks that have high interest rates carry insurance to cover losses. If your borrowing money they will ask you if you would like this coverage. On credit cards its standard procedure to automatically add it. So you see Capital One has already been payed once by the insurance, a 2nd time selling it to the debt collection agency unless they really own NCO Financial. Then they want you to pay this ridiculous price on a small amount.

Banks are high because they choose so. They build a big fancy building costing alot to build or pay off. Then thiers the employee's. The Electric bill and heat or air conditioning. The supplies they use. Hard telling how many little things that go un-noticed because no one is perfect. So Pete. Caculate everything and get the whole facts. The bank is'nt goin lose money and if it does and faces chapter bankruptcy think EnRon.

Pete,

Where did you get the idea that I cheated anyone?

And, how do you know whether I live within my means or not?

You know nothing about me.

You should have some facts to back up your assumptions, or keep your comments to yourself until you do.

You really know the ins and outs of trying to cheat a company.

Have you ever heard of the concept of paying your bills on time and not exceeding your credit limit? It's people like you and Ken that force up these interest charges.

Living beneath your means is completely foreign to you, isn't it?

Ken,

Your interest figures don't add up.

Here's what you wrote:

"30 % incrued interest on $389.52 is what? $29.95 TIMES 3 which is what they charged 1st month".

30% interest would be 2.5% per month on the unpaid balance. [ 30% APR = 30/12= 2.5%].

And ..FYI..30% of $389.52 = $116.86.

Where did you get your numbers?

Anyway, NEVER use one of those debt management programs. Most of them will defraud you, and those who don't will still hurt your credit more than help.

This is because you have to be 30-90 days late before you can even get into the program. Then once you are in, it is a 3 year lock on your credit. You cannot buy anything on credit for 3 years minimum, even if you are in the program for 12 months. It flags your credit to potential lenders.

I found out about this when I was in the mortgage business. I had underwriters tell me it was impossible to fund a loan for someone in this program.

NCO will always illegally add outrageous fees. These fees cannot legally be added until granted by a court. Interest on a charged off debt can only accrue at a max of 6% under federal law.

Ken, in your first post you said the balance was over $1000 in three months. Now you're saying something about $389.52? Not sure where you're getting your figures from and you're refusing to explain, so I'm signing off. Perhaps someone else can help you with this. Good luck.

Read what people are saying and listen to your own words. 30 % incrued interest on $389.52 is what? $29.95 TIMES 3 which is what they charged 1st month. Harrassing phone calls 3 times or more a week and them calling us a thief over $389.52. And these debt companies. Yes they do sometimes buy the debts out from companies hoping to jack up the price high and quick so they can make a profit. Its become a high dollar business. Your actually counting $389.52 which should'nt have been allowed. The card had a credit limit of $300. You seem to miss that a $300 credit limit means you can use only $300. Later they'll notify if you can use more. Banks have lost alot of money through defaulted loans. Pressure put on this country by federal cutting. A shrinkage in available spending money. If the country stays the course I'm afraid were facing the next great depression along with possibly the next World War. When the storms tore ashore America was'nt prepared because of a lack of funding and proper training because of the federal cuts over the past 30 years. But we can't do business with banks like this who overcharge to compensate for loss forced by the lack of money. When the federal cuts started Reagon had it backwards. It was the trickle down effect. The Business's of America depend on federal spending to keep the economy stimulated. Take all those billions out of the market and today is what you have. Plus the war is costing billions. Thier stimulating the overseas contries but thier killing America. The recent medicare change was shameful to the Seniors. And attempt to cut and re route to the war. But have you believe it was for you. Now Pharmacies, hospitals, doctors, and nurses and the whole cycle of people affiliated with that industry will now have to make cuts to survive the new program cuts. Say you have a house mortgage and a certain set of bills every month. Your wages are just enough to get the bills payed. Now you get a cut. What happens? You lose everything you got. Then the finance or bank company loses. See the cycle were in if the government does'nt quit cutting and does'nt jump in to help this country instead of worrying about whats happening overseas or wether will have enough oil to get through the day. Think about it.

Read what people are saying and listen to your own words. 30 % incrued interest on $389.52 is what? $29.95 TIMES 3 which is what they charged 1st month. Harrassing phone calls 3 times or more a week and them calling us a thief over $389.52. And these debt companies. Yes they do sometimes buy the debts out from companies hoping to jack up the price high and quick so they can make a profit. Its become a high dollar business. Your actually counting $389.52 which should'nt have been allowed. The card had a credit limit of $300. You seem to miss that a $300 credit limit means you can use only $300. Later they'll notify if you can use more. Banks have lost alot of money through defaulted loans. Pressure put on this country by federal cutting. A shrinkage in available spending money. If the country stays the course I'm afraid were facing the next great depression along with possibly the next World War. When the storms tore ashore America was'nt prepared because of a lack of funding and proper training because of the federal cuts over the past 30 years. But we can't do business with banks like this who overcharge to compensate for loss forced by the lack of money. When the federal cuts started Reagon had it backwards. It was the trickle down effect. The Business's of America depend on federal spending to keep the economy stimulated. Take all those billions out of the market and today is what you have. Plus the war is costing billions. Thier stimulating the overseas contries but thier killing America. The recent medicare change was shameful to the Seniors. And attempt to cut and re route to the war. But have you believe it was for you. Now Pharmacies, hospitals, doctors, and nurses and the whole cycle of people affiliated with that industry will now have to make cuts to survive the new program cuts. Say you have a house mortgage and a certain set of bills every month. Your wages are just enough to get the bills payed. Now you get a cut. What happens? You lose everything you got. Then the finance or bank company loses. See the cycle were in if the government does'nt quit cutting and does'nt jump in to help this country instead of worrying about whats happening overseas or wether will have enough oil to get through the day. Think about it.

Read what people are saying and listen to your own words. 30 % incrued interest on $389.52 is what? $29.95 TIMES 3 which is what they charged 1st month. Harrassing phone calls 3 times or more a week and them calling us a thief over $389.52. And these debt companies. Yes they do sometimes buy the debts out from companies hoping to jack up the price high and quick so they can make a profit. Its become a high dollar business. Your actually counting $389.52 which should'nt have been allowed. The card had a credit limit of $300. You seem to miss that a $300 credit limit means you can use only $300. Later they'll notify if you can use more. Banks have lost alot of money through defaulted loans. Pressure put on this country by federal cutting. A shrinkage in available spending money. If the country stays the course I'm afraid were facing the next great depression along with possibly the next World War. When the storms tore ashore America was'nt prepared because of a lack of funding and proper training because of the federal cuts over the past 30 years. But we can't do business with banks like this who overcharge to compensate for loss forced by the lack of money. When the federal cuts started Reagon had it backwards. It was the trickle down effect. The Business's of America depend on federal spending to keep the economy stimulated. Take all those billions out of the market and today is what you have. Plus the war is costing billions. Thier stimulating the overseas contries but thier killing America. The recent medicare change was shameful to the Seniors. And attempt to cut and re route to the war. But have you believe it was for you. Now Pharmacies, hospitals, doctors, and nurses and the whole cycle of people affiliated with that industry will now have to make cuts to survive the new program cuts. Say you have a house mortgage and a certain set of bills every month. Your wages are just enough to get the bills payed. Now you get a cut. What happens? You lose everything you got. Then the finance or bank company loses. See the cycle were in if the government does'nt quit cutting and does'nt jump in to help this country instead of worrying about whats happening overseas or wether will have enough oil to get through the day. Think about it.

Read what people are saying and listen to your own words. 30 % incrued interest on $389.52 is what? $29.95 TIMES 3 which is what they charged 1st month. Harrassing phone calls 3 times or more a week and them calling us a thief over $389.52. And these debt companies. Yes they do sometimes buy the debts out from companies hoping to jack up the price high and quick so they can make a profit. Its become a high dollar business. Your actually counting $389.52 which should'nt have been allowed. The card had a credit limit of $300. You seem to miss that a $300 credit limit means you can use only $300. Later they'll notify if you can use more. Banks have lost alot of money through defaulted loans. Pressure put on this country by federal cutting. A shrinkage in available spending money. If the country stays the course I'm afraid were facing the next great depression along with possibly the next World War. When the storms tore ashore America was'nt prepared because of a lack of funding and proper training because of the federal cuts over the past 30 years. But we can't do business with banks like this who overcharge to compensate for loss forced by the lack of money. When the federal cuts started Reagon had it backwards. It was the trickle down effect. The Business's of America depend on federal spending to keep the economy stimulated. Take all those billions out of the market and today is what you have. Plus the war is costing billions. Thier stimulating the overseas contries but thier killing America. The recent medicare change was shameful to the Seniors. And attempt to cut and re route to the war. But have you believe it was for you. Now Pharmacies, hospitals, doctors, and nurses and the whole cycle of people affiliated with that industry will now have to make cuts to survive the new program cuts. Say you have a house mortgage and a certain set of bills every month. Your wages are just enough to get the bills payed. Now you get a cut. What happens? You lose everything you got. Then the finance or bank company loses. See the cycle were in if the government does'nt quit cutting and does'nt jump in to help this country instead of worrying about whats happening overseas or wether will have enough oil to get through the day. Think about it.

You stated:

"NCO is nothing more but Capital One's in house collection agency."

NCO Group is the largest collection agency in the nation. They have several divisions.

They do collections for original creditors and debt buyers, and they also buy debts themselves.

They do not only work for Capital One. Capital One and NCO are totally separate companies, and are no way affiliated.

Although they do seem to share the same low code of ethics.

NCO is nothing more but Capital One's in house collection agency. It just seems more official if it appears to be from a outside agency. Most credit card companies are willing to work with you, if you let them know upfront, and not just dodge them. I use to be a collector. Call Capital One and ask them to re-age your account, more then likely they will do it, and then start making your payments again, and on time, they will only do this once.

NCO is nothing more but Capital One's in house collection agency. It just seems more official if it appears to be from a outside agency. Most credit card companies are willing to work with you, if you let them know upfront, and not just dodge them. I use to be a collector. Call Capital One and ask them to re-age your account, more then likely they will do it, and then start making your payments again, and on time, they will only do this once.

NCO is nothing more but Capital One's in house collection agency. It just seems more official if it appears to be from a outside agency. Most credit card companies are willing to work with you, if you let them know upfront, and not just dodge them. I use to be a collector. Call Capital One and ask them to re-age your account, more then likely they will do it, and then start making your payments again, and on time, they will only do this once.

NCO is nothing more but Capital One's in house collection agency. It just seems more official if it appears to be from a outside agency. Most credit card companies are willing to work with you, if you let them know upfront, and not just dodge them. I use to be a collector. Call Capital One and ask them to re-age your account, more then likely they will do it, and then start making your payments again, and on time, they will only do this once.

Jennifer,

Were you an ex employee of Capitol One,

OR NCO Financial?

If Ken is dealing with NCO financial, the amount is due to to fees NCO illegally adds to its collection accounts.

Those fees are light compared to what NCO usually tries!


Ken,

Don't deal with NCO at all, it will cost you.

Change your phone # to an unlisted one.

Saturate all of thier fax#'s with thier collection notices with nasty notes attached. I tape about 6 pages together in a loop and press send just before going to bed.

Just have fun with these idiots. They are powerless egomaniacs and freaks. Tell them you don't deal with bottomfeeders.

If you really want to pay the debt, just send payments directly to Capitol One, but that would not be my recommendation.

Your post is a little disjointed but this is what I was able to determine:

Your wife has a $300 credit limit. Her balance was "under $400" when she came to see you. Since you didn't say it was "under $300" I'm going to assume her account was already overlimit.

Capital One fees are typically $29 for both past due and overlimit fees. You said she got behind for three months. You also said she used the card to purchase luggage, which just added to her balance. Then there are finance charges to consider. But, even with all that, I find it highly unlikely that her balance would have gone up from "under $400" to $1000 in three months.

If her APR is 30% then she's being charged $10/month for a $400 balance. If she got both past due and overlimit fees for three months, that's $174. So that's only about $205 over a three-month period -- not including what she spent on the luggage. (I'm assuming that the "under $400" balance included the lugguage.) So if her balance was about $400, the fees/finance charges would bring it to about $600, or perhaps a bit more if she was charged an annual membership fee.

I just don't see how she could have gotten to a $1000 balance in just three months. Did she use the card after making a payment which later bounced? That's the only thing that makes sense to me...