Capital One Consumer Loan Complaint

Capital One Consumer Loan department,

Vehicle loan Problems when you are unable to pay North Dakota

We purchased a vehicle in - 2012 through Capital One bank. My husband was - - military at the time and had just left for -. He was not getting correct pay while on - and we got 3 months behind on our auto loan. Capital one said it was ok because he was covered under the SCRA and to pay when we could. We checked his credit to see that Capital one had charged off the auto loan after 3 months. We paid what we could on the loan when we could. My husband retired from the military and we did n't know how to deal with the auto loan showing as a charge off so we called Capital one to find out what to do. They told us if we could sell the vehicle, the remaining balance would be zeroed out and sent to the IRS as debt relief " income '' that would need to be filed with our tax return. We took the vehicle to our local dealership and took a huge loss on the vehicle. Thinking we would just have the balance as " debt relief '' we accepted the deal. Our credit reports are


telling me that is not how their settlement amount works. We took a huge loss on our vehicle when we just could have gone to our bank to refinance the loan instead. Capital One was dishonest with us before the vehicle was sold and I feel like they told us what we wanted to hear in order to have the account settled so they could write off the remaining balance. We are now going to lose the house we are in because we are temporarily renting until we can get a loan from our bank. Our bank requires a - balance on any charged off accounts before they will do the loan, which is why we trusted Capital one when they told us if we sold the vehicle the balance would show as - because we have to claim the remaining as debt relief income. If we have to claim $ - as debt relief income, how can Capital One still list $ - as balance owed? If the IRS is penalizing us for that balance, and Capital One is writing it off, how is it legal for Capital One to still say we owe it?