Complaint Review: Capital One Business Credit Card - Internet

For the last 12 years I have ran a home building business and a real estate business.  I had Capital One Visa credit cards for both companies.  These cards were taken out in the names of the business and used for business expenses.  The accounts were opened and paid perfectly for 5 and 4 years respectively. 

In May of 2009 with the economy killing real estate, my companies were faced with closing.  All the years of hard work were reduced to liquidating everything to pay the short fall on every sale transaction.  The real estate values caused the companies to take short amounts on every deal to get out from under crushing debt.  With no cash flow negotiation was required with all our lenders.

I contacted Capital One asking to attempt to restructure the debt at a low rate for 60 months.  I was hopeful that I could close the account and put the balance on a 60 month note at 6%.  Chase had done this for me on another business account.  The balance for both accounts was around $17,000.  Capital One said there was nothing they could do and 24.9% rate was the best they could do.  Keep in mind the accounts had never been late.  At that point I was force to stop paying due to cash flow. 

Over the next few months, Capital One called 20 times per week but would still not offer a solution.  The rate jumped from 24.9% to 29.4%.  Almost 30%, plus $39 per month in late fee!!!  In October 2009 they send a letter stating they were going to report on my personal credit bureau (it had been taken out in the business name).  My personal credit score (twenty years of perfect credit history with dozens of mortgages and loans paid as agreed) went from mid 700's to 570.  My ability to borrow and earn money is gone with the good credit.  My balance went up to almost $27,000 with the fees. 

Two weeks ago, Capital One called and offered a settlement.  I agreed if they would stop reporting the business accounts on my personal bureau.  The agent agreed and said she would send a letter to verify this agreement.  When I received the agreement the fine print reads that the settlement and late payments would still be reported.  I called the number on the "Capital One" letter head and got "AlliedInterstate"  which I am told is not part of Capital One.   The agent on the phone said that it would be reported late but nothing else negative.  I then read her the disclosure on the agreement, which was completely contradictory to what she had just told me.  The disclosure reads "If your account is settled before it is charged off, the remainder of your account balance will be charged off.  We will then report your account to credit reporting agencies as settled with an outstanding balance."  I asked to be transfered to a Capital One Agent that could help me.  I went through several people, all told me a different version of what that disclosure meant.  None of which could do anything.

This company does not care about doing a work out or helping their customers.  I offered to pay every dime back at a reasonable terms.  Their solution is to get all the principal back in cash, the 30% interest and late fees to be waived but for me to get a 1099, and to crush my personal credit for a business debt.  It doesn't seem like there is much common sense in this company.