How to get Debt Settlement with Bank of America – FIA Card Services – Penncro Debt Collection Agency
I received a statement of account from Penncro Associates regarding our Bank of America credit card. It used to be MBNA and they were acquired by BOA. We have been unable to make a payment on our account since September (prior to then we had never been late on a payment ever in the 15+ years I had had the card and with them raising the interest rates so high I exhausted our savings account trying to keep up with the credit card payments). Anyway, the statement states that my account has been referred to them for collection but any payment should be sent to FIA Card Services which is BOA.
Am I correct in assuming then that BOA/FIA hasn't sold the debt to Penncro if any payments should be sent to FIA?
The statement also says that I can request a "Validation of Debt", should I?
When do I start the negotiation process to settle the debt?
Any help you can give me would be greatly appreciated.
Am I correct in assuming then that BOA/FIA hasn't sold the debt to Penncro if any payments should be sent to FIA?
—STACY
You are correct in your assumption that your Bank of America account has not been sold if payment instructions are to send money to FIA Card Services. Penncro is just an assignment debt collection agency working to collect your old MBNA, now BofA credit card debt.
Settling Your Bank of America or FIA Card Services Account with Penncro
You definitely have the right to to request validation of the debt, but should you? If you recognize the Bank of America credit card debt as yours, and want to resolve the account through settlement, I would not recommend sending in a validation request. Sending the request may actually complicate your efforts. Here is a brief article on the topic of debt validation when you are trying to settle a debt that you know you legitimately owe: Debt validation when you really just want to resolve an account.
When and how to approach your negotiations with Penncro, or even if you should, will depend on several things.
- What amount of money do you have available now to apply to a lump sum settlement?
- If not enough to settle in full for the lowest available offer, how long will it take to raise the funds? Can you reach a settlement and payment terms with time to pay? In other words, reduction of the balance owed with several months to pay the settlement in installments is an option.
- Could a better deal be negotiated direct with Bank of America or FIA Card Services?
- Are you current with other credit card payments?
I would recommend you read through the settling with debt collectors portion of the site. I cover most of what you want to know about settling credit card debt with collection agencies like Penncro and others. There are differences between settling with your bank directly, and each different debt collector BofA may send or sell your account to.
If you want to talk over your situation on the phone, call me 800-939-8357, and press option 2. I also offer one on one help if you need it.
If you have questions or concerns while you read through the articles and reports about settling debt, post them in the comment section you will find at the bottom of each page. Anyone with questions or concerns about settling your credit card with Bank of America, FIA Card Services, or Penncro, is welcome to post below for feedback and helpful tips.
About Michael Bovee
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Michael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
We just had a title search on our home. We found that I have default judgement on my FIA card. Which I believe to be a credit card from years ago. It was filed June 28,2010. I was unaware of this entire situation. It was for 4,128.23 and now with interest it’s over 7000.00. What would be the best way to handle this since I have no recollection of the lawsuit? We live in North Carolina and it’s never been on my credit report. Thank you!
First of all, you have an amazing site. Thank you for sharing such valuable information.
I just received my summons from BOA attorney’s Glasser & Glasser on 6/27/19. I’ve never been in this situation before and I have 30 days to file an Answer.
I. Plaintiff – Bank of America
2. I owe $4,375.13 – The statement from BOA is attached. Last payment was 6/18 and their last written warning was 11/18. At the time, I was not in a good financial place or state of mind. Today, I’ve recovered and I have received significant raises.
3. I currently mortgage a home and make payments on a 2015 vehicle – with payments up to date.
4. I have a personal loan I had to scramble to get in 2017 for a heat pump and I was in the midst of refinancing in order to pay off debts.
5.. I do have medical bills that are in collections and more to come. This probably equals $8,000.
6. I can scrape together about half of the above amount today. I can likely make payments at this point.
My question are, do I contact BOA directly at the number of their last warning letter, or do I have to contact the attorney’s representing them in this lawsuit if I attempt to negotiate and settle? If I don’t settle, where can I get guidance on how to answer? I appreciate your time.
You would contact the collection law firm for Bank of America in order to negotiate your settlement. Things are a bit different when negotiating a settlement after having been sued. Check out this page if you are going to do this DIY: https://consumerrecoverynetwork.com/question/can-you-negotiate-and-settle-a-credit-card-debt-if-you-are-being-sued/
You can get help defending the suit and settling from the network. An attorney will draft and file your answer for $200, then charge 15% of what they save you in the settlement. You will buy yourself some time to pull money together by defending the case. You can click the get debt help tab in the upper right corner of any page on this site and create your user profile (secure and private), and when you get to the part where it says schedule to talk with an expert, bring up that calendar and pick the day and time you would like for me to call you to go over this.
Hi Michael,
I defaulted on a Bank of America credit card in 2017 due to cumulative unemployment, surgery issues, etc., and just received a summons for a lawsuit a few days ago. The facts:
1. Plaintiff – Bank of America, NA
2. Attorneys for Plaintiff – Rubin & Rothman (“This communication is from a debt collector,” etc.)
3. Sum -$13K “and costs of this action”
4. NY State resident
5. No real assets – Don’t own home or car, no savings left, no retirement acct., furnishings in studio apt not likely worth
more than a few grand, already sold what jewelry I had year of default to pay rent and eat
6. Still don’t have full-time work, a position I had higher hopes for has turned out to be more of a 6-8 day a month gig,
thus far no pay stubs to furnish anyone, and basically just enough to cover rent and utilities and food.
7. $40K+ federal student loans, currently in deferrment
8. I have kept current on my only other card, a store card, because I have been able to swing the low $30 min payments
I live in a stabilized tenement walkup, located in a fancy NYC zipcode, for what that’s worth, wondering if zip code flagged me as more attractive to sue…
My intention is to get loans from loved ones to settle, and know not to negotiate until cash is in hand. Am I correct that I should file answer first before contacting the Plaintiff firm to negotiate? It seems unlikely to do better than 50% with BOA, is 30% a good place to start?
Do you have any idea what their court costs might be?
I have until July 1st to file an answer – I have poured through your pages, but am still unsure what I can/should say. Your quote, “often better to file an answer or general denial before negotiating,” are those separate procedures, or is a general denial just one way to file answer? I understand the concept of establishing controversy and the importance of showing that I will not just wither, but in terms of “defending the suit,” I am wondering what best to say in defense, and when to say it.
I did contact a firm that specialized in these suits and was quoted a fee of around $2,500 to do all the filing and negotiating (plus $250/hr court cost “which rarely happens”), but it wasn’t really a consultation, just a 3 minute call to request my contact info and a scan of the suit. The assistant’s response to the scan only mentioned seeing the case to a satisfactory conclusion, and buying me time. They also mentioned that I could file the answer pro se and attempt to work out “a manageable payment plan” on my own, then included links to other possible attorneys and free legal resources. No mention of possibility of settlement, not very encouraging – was this a brush off?
Committing to a payment plan is not really a viable option for me now without a solid, predictable income, and I would like to avoid default. I have seen your writings regarding BK, but fear that might make finding more gainful employment even more difficult. Any advice on strategy? I would probably be more comfortable with representation, but if the best they can do is arrange a payment plan I can’t afford, it seems like throwing money out the window. Any thoughts/ideas you can offer are GREATLY appreciated!
I would talk things over with an experienced debt collection consumer law attorney in your area.
A general denial or answer to the lawsuit accomplishes the same thing. And yes, it is still what I would do in a situation like this, before negotiating, if it were me.
Assume for a moment you could settle this for around 7k. How long would it take to pull that together?
Thank you for responding!
With respect to pulling 7k together, it could be two weeks, or two months. A relative has indicated a willingness to help and, I believe has the ability to do so. My issue is they are pressed for time, not always easy to contact, and may not appreciate my sense of urgency. I am finding it difficult to force the issue, considering I am the one with hat in hand, so to speak. I still feel this is something I can work out. I plan to contact a couple more attorneys for consultation, but I cannot pay a retainer without help from the relative.
I have gone to a legal clinic that offers advice to the public. They recorded basic information and filled out a Written Answer for me to submit to the court. In addition to selecting “General Denial” on the checklist, they also chose the following defenses:
– I do not owe this debt
– I have paid all or part of the alleged debt
– I dispute the amount of debt
– Unjust enrichment (the amount demanded is excessive compared with the original debt)
I did scramble to beat the charge off deadline on the last day possible, and understood I had successfully done so at the end of Nov. 2017. I made a few payments as discussed with the bank representative (totaling $800-1,000), but when trying to make the subsequent payment, was told by another department that the entire amount was due (can’t recall if that meant total amount overdue or entire debt), and that even though their notes indicated my previous understanding, that the person I had discussed it with was somehow wrong/mistaken. Obviously I couldn’t pay the entire amount.
So my question now is, if I go ahead and file the answer I have prepared now, can I still pursue this with an attorney down the road? Do the responses the clinic chose (staffed by volunteer attorneys) seem overdone?
I believe their rationale may be in part, because we don’t know how the payments I did make were credited, and they said something about interest and fees? Confused. I have another appointment in two days with volunteers from the local bar association, and am doing all the reading I can to be as informed as possible while I try to raise the funds. Thank you for all you do!
–
I would be okay with what they prepared if it were me.
Thank you, Michael, that’s comforting, whew!
The Bar clinic was a bust, the person I spoke with had no knowledge about this type of law whatsoever (even advised I call Plaintiff attorney to try and settle before filing answer, which I know is bad advice). I have held off on filing the answer because I wanted to look into finding representation before doing so. One told me that given the amount (13K), it was probably not cost effective to hire an attorney to try and settle – he also recommended speaking with the first legal clinic (one’s who filled out answer for me).
Second firm was polite and professional, but I can’t even get past their screening to a consultation without being able to definitively answer questions I cannot yet answer (ie how much $ help, when, how much per month, etc.). Also, above flat fee for court and negotiating, they charge 20% of amount of savings, and said that if I went ahead and filed the answer myself, that they could not represent me (I thought counsel can file amended answer if necessary?). I don’t question an attorney’s right to make a living, I just expected an actual consult (as advertised and referred to in online ratings), and some vague information and outline of what my expectations might be for the process, before making a decision to hire someone. additionally, I need to help my elderly dad who lives in a nearby state get rid of most of his stuff, and move…overwhelmed. I was hoping to be able to take care of this and settle, so I can deal with everything else on the plate.
As I am running out of time to file the answer, I guess I’ll just go ahead and do that tomorrow before my head explodes from the stress, and continue from there. Now off to medicate myself with some chocolate…
I just noticed on my credit report that i have a judgement against me from fia card sevices for $4700 I want to settle this as soon as possible. How do i contact them? Do they ever settle on a lower amount? I would pay the full amount if I had to. Any advice? Thanks
Call FIA Card Services and find out if they have the account internally, or if they still have it with the law firm they used to sued you, or with a different one.
If FIA still has it, you can negotiate right then and there. You will have to convey a hardship, and be convincing with what you are offering is all that you can raise to settle with them.
If it is with a collection attorneys office FIA will tell you who and how to contact them. You will need to call the collection attorney to negotiate a settlement on the judgment. Read that linked resource before calling the law firm. Tons of helpful information there.
Also, watch this video about what debt collectors can see about you.
I have a judgment against me from March 2016 by bank of America. I don’t ever remember being served or notified of court date but at the time i was going through some things so I may have. Basically they went to court and i didn’t. The judgment is for 14k….since then I’ve gotten a really good job and im sure they are soon to come after me to collect. More importantly I’m trying to get my credit back in order from a divorce. I’d rather not pay a dime but id really like to get this taken care of. I’m in a position to offer a settlement for 5k or under. I live in louisiana….best way to handle?
Fill in the talk to Michael form in the right column. I will email you and set up a time to go over your situation on the phone. It is rare to be able to settle judgment debts for less than half. But perhaps yours is one of those situations.
I have received a civil suit from Bank of American …how can I stop it — or can I make arrangements for monthly payments?
How much is the lawsuit for? What state are you in> When did you last make a payment?
I have had a Bank of America card well over 25+ years; always paid on time. In fact I have tried to pay well over the request and for the past 5 years have not used the card. I called them 6 weeks ago and told them my income has drasically has changed; I no longer can work my 2 part time jobs due to my husbands health issues. Also I will be retiring in the next 6 months which my income will change too. I have a $6500.00 balance and have offered to clean out my savings to pay $3000.00 of the $6500.00. They told me today I do not fit the criteria for a lump sum debt settlement. They could not give me any more reason then that. My credit score is 798 and I have good credit. What would you suggest. I don’t want to go with a credit counseling service; as they still want me to pay $200.00 a month.
You cannot settle with Bank of America while your payments are current. In order to settle for the best savings you will want to be 6 or so months late. There is not much to it, but to to determine you cannot continue to pay, and then actually stopping for that long.
I have a BOA judgement against me for $11,000. A month ago the bank attempted to collect money from my local bank account but there was no money there. Are my wages going to be garnished next?
What state do you live in?
Hi Michael,
After much fear of facing my bad debt, I would like your advice. I held a Bank of America checking account and I became more broke and could never catch up with all of the overdraft fees. Even if i canceled automatic debit transactions (ex. Monthly gym dues,) the overdraft fees for each attempted withdrawal from if II didn’t have the fees the first time, they would try again the next. Each time I incurred $35 withdrawal fee. After some time I could never keep my balance in the positive. I would like to rectify this. I pulled my Chex systems report and my BofA account is listed as “Account abuse”. Original charge off amount of $1117.24 and closure status is unpaid. I don’t know where to start. I would sincerely appreciate any advice you have.
You are going to want to contact BofA and talk to them about paying it off. How long ago was this?
Hi Michael,
What a helpful site you have created! I have read through many of your articles on debt settlement and I am hopeful you can provide some advice for my situation. I was laid off in early 2011 and exhausted my savings trying to keep all my bills current. I was successful in doing so for about a year, but ran out of funds. I ended up taking a job in early 2012 that paid about 35% less than my previous job, and I couldn’t get back on track. I had 4 credit cards that became delinquent – 3 with Chase, 1 with Citibank, and also 1 line of credit with BofA that I was unable to continue paying. I tried to negotiate lower payments with some of these creditors at the time, but was unsuccessful.. Last year (2015) I was able to settle 2 of the Chase cards on my own with my tax refund. This year I am hoping to settle the rest, if possible. The details of the debts are:
Citibank CC- balance $18,400, last paid 12/2012, appears to have been sold to Cavalry Portfolio Services in May 2016.
BofA LOC – balance $23,500, last paid 01/2013, Most recently referred by BofA to Northstar Location Services about 3 months ago.
Chase CC – balance $10,800. I don’t know who the debt collector is..
I have several mortgages and also a few smaller credit cards that I have been able to keep current, such as Lowe’s, Home Depot, Discover, Old Navy, etc. I tried to keep up with everything that I could, and the mortgages are for rental properties where the rents pay the majority of the mortgage & expenses. On my credit report the BofA and Chase accounts show they are charged off, but there is no record of the Citibank account whatsoever. Is that odd, and does that affect my strategy?
I’m sure it doesn’t look good that other creditors have been paid without delinquency, but that is how things unfolded in my case. At the time I thought I would get back on track and tried to pay the debts I was capable of paying, plus I didn’t want to become delinquent on the mortgages.
What is the best approach (timing and amount of settlement to shoot for) when trying to negotiate settlements with Cavalry (for Citibank) and Northstar (for BofA), as well as Chase (if I can find out who the debt collector is)?
I have approximately $8K that I can work with at the current time to try to settle these debts, and could accumulate around an additional $3K in the next few months.
Thank you for your guidance!
Your situation is complicated by all of the positive things that are showing on your credit. It can make getting the best settlement outcomes more difficult, and you need the best outcomes it you want to get these all knocked out with the funds available to you now, or in the near future.
Call me to talk over some ways to maximize your settlements at 800-939-8357, choose option 2 to ring my phone. You can reply to any comment notifications you get from the site and I will respond to those too.
Hi, I have settled my BOA Credit card for 2300/9400 USD on 23rd may. BOA sent me a settlement letter stating they will report this account as “Settled account. paid in less then full balance” to credit agencies.
But on June 9th 2016, I see below listing in experion report for my BOA account.
Account Status – Closed- paid and closed
Payment Status – Collection/Charge-Off
Remarks – Account Paid for less than full balance charged off.
Is that the way BOA reports a settled account or do i need to contact BOA to correct the reporting to “Settled”
Please advise
.
It will look a tad different on each report, but yes, that is what it will show up as, and with a zero balance owed (which is the most important part of settling).
Bank of America is one of the better banks at updating your credit reports after you reach a settlement.
Hi,
I just learned I have a lien on my home because I was trying to refi. The lender told me it was from FIA card services. I remember working out a payment plan that ended up falling through back in 2012. I did receive a letter from a sheriff that asked for my response within 30 days to be filed. I filed response with the court and Frederick J Hanna & Associates ( they were handling the debt collection). This also took place in 2012. After filing this response letter I never heard anything else until I went to refi and apparently there is a judgement against me. The original amount was $2400 and it has grown to almost $4000. I’m a single Mom and work as a waitress so it will be hard for me to come up with that kind of money. What should I do?
How long would it take you to raise half of that?
I could probably get it within a couple months or borrow it from family and repay them. I just wouldn’t have it immediately.
That can work in your favor. With the hard pull on your credit reports from a lender for a home loan, I would want to wait 90 days if I could before calling to negotiate a settlement (if you can wait that out and you appear to need to). This is because debt collectors have real time access to your credit reports and they can see that you are trying to get a home loan. You can tell them it was not able to go through after a little bit of time goes by.
You can still call to negotiate earlier than that, and the deal you get may be as good as if you never applied for a home loan, but I find that to be less common.
Read through my post about settling judgment debts.
Bank of America credit card charged off in 2010 with a balance of $30,000. Account was placed with Gatestone. I have been making payments to Gatestone since charge off in the amount of $200.00 each month. Current balance is about $18,000. I have $3,700 saved for a settlement. What target amount due you recommend for a settlement with Bank of America? I am not sure if I should reach out to Gatestone and discuss settlement amounts or if I have no amount near enough to settle the account.
Settling with Gatestone now, given the history and while your payments are current, is likely going to require some more money than what you have saved. There are exceptions to that, and you may be one, but call in for a phone consult and I can dig deeper into how a debt collector, whether from BofA, Gatestone, or even another agency, would view you as a collection target. You can reach me at 800-939-8357, choose option 2. I am not in much today, but will be the rest of the week. You can fill out the talk to Michael form in the right side bar too, and that way we can schedule a time to speak.
I had two credit card from BOA with a balance of 14K and 6K.. These account were charged off in May 2012. the last date of payment was Oct 2011. My legal state of residence is Alabama where the SOL is 3 years and which is already passed. Bank of America hasn’t sold this debt to third party outside collector. As far as I know there is no collection activity going on in this account.
Since it’s past SOL, do you think BOA will accept 3K as a settlement amount for both the card? I can afford to pay this amount but no more than that.