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
Short answer
Yes. If the payment instructions still tell you to send money to FIA Card Services, the account has not been sold. Penncro is an assignment collection agency working your old MBNA, now Bank of America, credit card debt, so a settlement is available through them.
Key points on this page
- Payment instructions naming FIA Card Services mean Bank of America still owns the account. It has not gone to a debt buyer.
- Penncro is an assignment debt collection agency working the account for the bank. It is not the owner of the debt.
- You have the right to request validation of the debt, but it is not recommended when you recognize the debt as yours and want to resolve it by settling. The request may complicate your efforts.
- A settlement can be a lump sum, or a reduced balance paid in installments over several months if you cannot fund the lowest offer today.
- When and how to negotiate depends on the money you have available now, how long it would take to raise more, whether a better deal could be negotiated direct with Bank of America or FIA Card Services, and whether you are current on your other cards.
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 BoveeMichael 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. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Back in 2011 a collection agency contacted me, talking about garnishing wages. I set up a monthly payment of $50/ month and everyone was happy. In March of 2012 I called and set up automatic payments (so as to stop sending checks by snail mail). Everything went well. After 2 months of payments not being withdrawn I contacted the collection agency, asking why my $ was not being taken.. After 2 months of collection agency and B of A conversing… I got a call stating that B of America was not going to take payment because I was in the military. I explained with collection agency that the information was wrong. I WAS in the military until 2012 when I called them. He called B of America with correct info and said the answer was the same. So since 2012 I have not talked to or heard from anyone about this account. I am afraid that this account is going to come back and bite me in bum. Should I be expecting any calls or unexpected letters? My charge off date is 12/2008
The debt with BofA is still out there. You were making some form of payment up until March of 2012 so that would likely be the start date for calculating some of the limits collectors will have on your account.
What is your goal for this account? How much is the balance owed?
My goal was to pay it, until they stopped taking my $. At that point i walked away from it and focused on the rest of my credit report. I owe 6,000.
At the time you were trying to make those payments there may have been some hypersensitivity to collections from service men and women. I do recall major efforts from federal regulators to prevent abuse around then.
If you want help getting this resolved you can call me at 800-939-8357, choose option 2.
I owe BOA about $25,000 and I think I am going into my 5th month. I received a letter in July stating that I am 2 months behind this is why I am assuming this. I got another letter this past Friday stating that if I don not respond by September 22 which is tomorrow (Tuesday) they will proceed with further collections. I am not sure if that means it will go to an attorney which frightens me to death. What are the procedures after 150 to 180 days with FIA card services. Does it go into another collection agency thereafter? I can take money out of my company stocks to do $7,000 settlement. Do you think they will accept that or is that reasonable? I had to take a pay cut to my job and work less hours to take care of my mom which has been a strain on me and my finances. BOA/FIA has been calling every single day which I have been ignoring. I do not have any other credit cards besides my husband is also behind 2 months on his credit cards with BOA. I have one other credit card with Capital One that I am current but the balance on that is only $2,000 and I only required to make $25 a month on that which I am current but it is maxed out. I wanted to call BOA today to try to settle and I am not sure where to start. Do you advise for me to give them any information or just let them know that I had to take a pay cut and work less to take care of my mom and that’s the end of it. I really do not want to tell all my business because I am afraid they might use it against me. I did transfer my checking and savings account over to another bank back in March when I fell behind as someone advised for me to do that. Please help, I would really like to call them today as they have been calling me every day and leaving messages that they have several options for me. I am not sure if one of the options on for me to settle. I own my own home and are not behind on payments of course I need a roof over my head and both cars are 10 plus years old with no car payment. That is it to my life just simple. Thanks for your help in advance!
Call me for a consult Yolanda. I want to dig deeper into your circumstances in order to offer the best feedback. You can reach me at 800-939-8357, choose option 2.
The 7k you have to offer BofA as settlement in full is low for most situations, but I do see those types of settlements still getting done. I can offer more when we speak.
Hi Michael,
Glad to have found this site. I actually tried to read most of the posts and skimmed a lot since the 2013 postings.
I need help on figuring something out. I’m a mortgage loan officer and I’m helping my parents buy a home using a VA loan.
Back in 2009, they had put a plan together to get rid of a lot of CC debt by taking on a debt settlement company. This company actually did a pretty decent job for them but some of the accounts were not able to get settled, which brings the issue:
Credit Report shows BofA charged off account owing ~$12,900 back in Dec. 2009. However DLA reports as 8/15 and Date of Last reporting reports as 8/15. So accounts report currently even though no payments are being made and NOTES state: last late date as of 12/2009 and acct closed at consumer’s request.
This isn’t the HUGE issue to get around. The issue is that there is a judgment reporting as NOT SATISFIED from FIA Card Services, in that exact amount from above BofA account with a file date of 10/2010.
My parents don’t honestly ever remember getting any correspondence about the judgment, which they would have, considering they have all the other paper trail(s) for other debt they were once sued over or what not.
Now based on my research, they are past the SOL for CA, which is good, but this has to be satisfied in some way to obtain the loan and the only ways I’ve been seen to do that are either establish a payment plan or pay in full to show satisfaction.
I’m afraid that if they somehow get ahold of FIA (which my dad has tried to in the past and has had NO CIGAR), and establish a payment plan, it will re-open the SOL and FIA could and might come after him for the debt.
Please help.
Thanks,
Call me for a consult on the issues Jared. You can reach me at 800-939-8357, choose option 2. If you get my voicemail be sure to leave a message.
BofA charged off my account of $5600 in 2008. I received a 1099c in 2012 for $4750. It is due to fall off my credit report at the end of this month. However, BofA won’t release from report until satisfied in full or settled. How am I responsible for debt that was cancelled? To make matters worse, I am closing on a house in 7 days! I need this taken care of ASAP…..what should I offer?
Cancelled debt that BofA sends you a 1099c for still has to run its course on your credit reports.
You can often delay a closing a week or two. If this BofA account is set to fall off your credit reports in 6 days I would try that first.
You are not necessarily responsible for a cancelled debt, you are trying to get a home loan through before this dropped off. That can mean resolving old debts, like the cancelled debt you have with Bank of America, in order to get your new loan approved.
Hi, Michael,
I’m in the same situation as most of these people.. I have a account that is charge off. the amount is $8100 and now in the hands of Nelson Kennard Law Firm. I just spoke them and they offer a settle amount of $5300. Do you think I can get it lower than that amount offer?
If the circumstances are right, and you go about it correctly, I do thing you can get this lower.
To get into some particulars that will be unique to you give me a call at 800-939-8357, choose option 2.
I fell in to debt after a very nasty divorce even after trying to be the nice guy never again. Anyway I have a default judgment against me from FIA in the amount of $18,978. It is 5 years old it is in TX I have moved far across the country now and have recovered to the point I can actually support my disabled wife and children. Problem is I have 5 months left on a lease to own contract. Then when my CR was pulled there is the judgment. I could make payments. I may even be able to come up with half of it borrowed to offer a settlement. I just dont know if any of this will help me keep this home we are in as I said I have 5 months to close so whatever I do would need to be quick. I just heard off the mortgage company and they stated all I need is a satisfaction of judgment letter. What are the best terms I can expect to get and is there enough time to get this off my credit record through settlement of some kind or a satisfied judgment letter.
I think you have enough time to get the settlement and the satisfaction filed.
Generally speaking, I would target 50% on this as a great outcome. There are reasons that could end up higher, and if done correctly, could be a good amount lower.
Do you want some help from a professional, or are you up to doing this yourself?
I think I screwed up big time today however I’m not sure. Was dealing with BOFA’s agency who handles collections (FIA) and was informed that my cc account was charged off however it is still in house as a courtesy provided I make some payments. I discussed the previous settlement offers which was right around 30% which were offered to me in FEB, & MAR. This particular agent told me that the settlement is going to be higher, but after a few minutes of debating with him he told me he could TRY for the 30%. but it wouldn’t be guaranteed. The reason he gave me that the 30% offer wasn’t guaranteed was due to the fact the account got charged off. I was told that if I wanted to settle, that I needed to release financial info such as income, and the reasons why I stopped paying my bills on time. I did release income info to him, and told him the reason I was having trouble paying was due to a child support garnishment & numerous other CC debt. Then I was put on hold several times for a few minutes where the agent kept coming on the line telling me he was transferring me to a verifier. The verifier basically read some disclosures to me and that was it. I had to basically ask them if I should call back to follow up. They said I would be receiving a settlement letter in the mail if it was approved. Did I mess up ? From what I understand in order for the creditors to agree on a specific settlement you need to release your financials to them. PLEASE HELP!!!! THANKS!!!
I have tended to not share information with FIA Card Services. But the times I have, or have guided customers through the process, we either got discounted settlements through, or ended up having to wait to make another offer that the customer could afford. A few instances I recall were later settled with attorney debt collectors.
Was the prior 30 percent offer direct from BofA, or was the settlement offer from FIA? Why did you pass on that deal at the time?
The 30% settlement offer was offered to me by FIA card services around the 3rd month of non-payment. I didn’t have any money at the time of the offer that’s why I didn’t take it then.
Okay, thanks.
The child support garnishment is something that will play in your favor. If I had your file I would hammer home the fact that it will be xx years before state enforcement will be out of the way so that others in line can get paid, but you have gotten some help form family/friends/other, and can offer only so much.
I would stay on top of them if you do not hear back.
I would at least like to talk to someone about this. There are other factors you got the basics but yes I think I do want some help depending on how much it will cost.
I can do the consult with you. Send an email to the address you get these comment notifications from and we can coordinate a time to speak that works with both our schedules.
Hi Michael
I have a judgement against me with BOA/FIA card services for the amount of 20,000..fell into hard times and was unable to pay…Im in NC and the judgement was initially with a law Firm in NC, at the time i did contact that firm and attempt to set up payments, we could never get a number that i could afford…since then my account has transferred to Frederick J Hanna in GA…which i was able to set up payments with and do make them monthly, i want to settle this account, do i contact BOA or Hanna? BOA is still showing the account balance on my credit report and it reflects a current date of the last payment made….I want to sell my current home and by another one but i know i cant until this is settled? Can you help? Also another question i have a joint account with my brother where i signed with him to get a ATV with Honda, long story short he didnt pay the bill and it was surrendered bc he had tore it up so bad that it wasnt worth paying for..the balance on that is about 7000…this year will be 7 years since a payment has been made on the account and my question is could this be sold to a debt collector and turn around and be a possible judgement with me and my brother on the account….im still in NC but my brother is not, he is in Seattle washington….please give me some advice on both of these matters..thank u
Fill in the consult request form and lets go from there – https://consumerrecoverynetwork.com/free-debt-consultation/
completed the form michael
I got it. I sent you an email and copied Jared, who is available to consult with you about settling.
Thank you Mr. Bovee
One last question. Would it be a good idea to at least call and ‘stay in contact’ with them and simply state my case that I would like to pay the full amount but simply don’t have the funds to do it right now since they did send me the settlement offer letter?
Also, I know that is a mission of this site to help people but I also know that you need to pay bills. Is there a way for me to give back for all the information that you share?
Thanks again
I would let them know that you are unable to continue with monthly payments, let alone come up with money to take them up on their kind offer to settle for less. You are going to look into ways you can raise money to pay them and will be in touch as soon as something comes together.
I have thought about putting up a donate tab in the sidebar, but have never followed through. I do encourage folks who find value from the site to donate a bag of groceries to their local food bank. It helps them immensely if you call ahead and ask what they may be running low of.
Mr. Bovee
I have a BoA credit card that was negotiated about a year ago under a reduced interest/payment plan. I have been making payments during that time frame however the account has not been current for awhile. I received a letter from them stating that they would settle for $3091. The current balance is $4400. I have a available $1000.00.
Would it be wise to call and negotiate with the cash I do have or simply make a payment and save for a time where I would be in a better position (I do expect to have some money coming to me from tax return, etc.. within a month) to work out a deal?
Also what is to be expected if I do settle to be on my credit report? What can be negotiated on that?
Thank you for your, attention, and response!
It would help to know who you made the monthly payment arrangement with back a year ago. Was the deal set up with BofA, FIA, or a third party debt collector?
What is the amount of your monthly payments?
Once you negotiate and pay a settlement on your Bank of America credit card, it is common to show as zero balance owed, and paid for less or settled on your credit report. That actually could be better for you in the near term than if your credit reports are showing you perpetually late, which is how I read your comment, or if your account had already charged off, but your making monthly payments on that.
The arrangement was made with FIA. The payment amount is $220. Yes the account is showing that it is late since it has not been brought up to date/current.
If I make a payment today would that reduce the chances of trying to settle for a reduced amount in a month or two since I will have extra funds to make that happen? If it does get charged off, does that mean the account would go to a debt collector?
Thank you for your awesome site here and fast response!
You generally set yourself up for success when you are not paying. There is a chance that your account would get assigned out to a third party debt collector, or even packaged up with other unpaid accounts and sold off to a debt buyer. My experience suggests you would be able to negotiate the same, and sometimes even better pay off amount, if that were to occur.
There is a risk that your account gets placed with an attorney for collection. If that happens, I think you would be able to get the same or better deal FIA Card Services just offered you out of the blue, but from the attorney debt collector.
I see more upside than down as long as you are confident the money will be there to fund the deal you negotiate.
I have a boa card that went past due during my divorce. I negotiated a repayment plan with fia and they lowered the interest rate to 2%. I have been making the payments for 4 months and noticed that this month (Feb) they have updated my credit report that the account was charged off. They still show the correct outstanding balance and the correct monthly payment. I have made the three monthly payments since I negotiated the repayment plan. FIA told me that after 6 months of on time payments they would re-age many account. My concern is that FIA/BOA has now reported this account as charged off on my credit report. I do not want to owe taxes on the balance since I am making the agreed to payments. With my payment plan I did NOT negotiated a lower balance or have the amount owed reduced so that I would not get hit with taxes on this. Can boa report this as charged off when I am making payments as agreed to.
How long did the account go unpaid before you agreed to the monthly payment plan with FIA? The answer to that may suggest the charge off credit reporting from BofA is normal.
There is no tax implication in your situation because there is no balance forgiveness. Charge off on your credit report has no impact on that.
If the account was already charged off, it can be better for your credit report, and your pocket book, to settle with FIA regardless of the tax implications.
It was past due 180+ days. Prior to making the repayment agreement I did make some small payments to keep the card from getting charged off. Right now my concern is trying to rebuild my credit score so I can buy a home. This is the only negative item in my report but it had really dragged my score down. I don’t have enough cash to offer a settlement and it would take a long time to save the money.
Will a bank usually refuse to lend money if this card shows as a charge off?. What is my best option to get this taken care of so I can qualify for a home loan.
Without the ability to settle for a lump sum, and realistically that number would be 30 to 40 percent of the balance owed today, there is not quick way to resolve it.
You can still get a mortgage with this on your credit reports, but be prepared to have to get the payment arrangement with FIA documented to show you are current with your agreement.
I have the agreement letter from boa and I keep records of the auto withdraws so hopefully that will help.
Assuming tha boa does do the re-aging after six months of on time payments will it still show as a charge off?
It is stated in my repayment agreement document from boa that they will re-age the account after 6 months of on time payments.
The charge off credit reporting by BofA is likely to stick once they reage the account.
Hi Michael, just came across this great site.
My wife has a credit card with a balance of $10,500. I have a credit card with a balance of $5,200. Both are BofA credit cards with pretty high interest rates. Neither of us have ever missed a payment.
I was recently given the opportunity to get a HELOC loan on my house for $11,500 for just the prime rate with no additional interest or points. So, obviously, that’s better debt than the credit cards.
My question is what kind of strategy can I put together for a lump sum settlement? Can I negotiate this on behalf of my wife’s credit card even though I’m not on it? Does it matter that we both share a BofA checking ($5k) and savings ($2k) account? I have pretty good credit (750s) and my wife is just a notch below that. Is it worth it to take the credit score hit in order to establish a financial hardship for a settlement or should I just pay off as much as I can n0w with the HELOC and pay the rest with the HELOC savings over the next year or so?
Some more information — We recently paid a big chunk of $900 to my wife’s credit card and $500 to mine after getting our income tax rebate. My wife also has about $10,000 in student loans at a very small interest rate and we have another $1,200 due in medical bills at zero interest. All of these accounts are in good standing. We are in Nevada.
What are the interest rates on both BofA credit cards?
19.24% and 18.74%.
What if your interest rates were cut by more than half, and your combined monthly payments for both BofA credit cards were something like 330? Could you commit to a long term repayment plan like that with confidence?
I want to eliminate affordability options that help you preserve your credit first, before jumping into debt settlement feedback.
I currently contribute $500-$550 a month towards these cards combined. Usually $350 for the bigger balance, $200 to the smaller balance. But just to be safe, I budget $500.
When you talk about cutting the rates in half, are you saying balance transfer to a better card? Or are you saying call and negotiate the rate down? Would this be preferable to taking on secured debt, even at such a low rate?
The HELOC would only require a 1.5% payment every month ($175), which would leave $325 left over to attack the remaining $4,200 on my credit cards.
I’ve done some basic math (you might want to check my math) and determined that even if I don’t get a lump settlement, the HELOC would take me a total of 34 months at $500 a month to pay off everything. That’s the $10,500 going away, and the $4,200 taking 15 months at $325 a month, then the full $500 being applied to the HELOC for 19 months after that to pay that off completely.
When I did the math for the current cards, I determined that it would take 44 months total to pay off. At $500 a month and a difference of 10 months, I estimated that the HELOC method would save me $5,000.
This doesn’t take into consideration the additional $120 a month we’ll gain in 10 months after the medical bill is taken care of.
My goal is to have six months of expenses saved up (we currently have only one month) and then be debt free, and then start putting money into a retirement plan (we have nothing in place currently, and I’m 30).
BofA does offer lower monthly payment plans direct to their account holders. You often have to have missed a payment or two before they sign you up readily. But they do regularly sign people up with lower interest rate payment plans (for the life of the balance) through nonprofit credit counseling services. You can talk to one free and get an exact to the penny quote. This would let you pay off your credit card in around the same time (44 months), but a little sooner if you apply the 120 you free up and apply to the BofA cards once the medical debts are paid.
I would likely do something like that, as opposed to missing payments to settle with BofA. I would prefer a plan that I had confidence I could succeed in, and without taking on the HELOC. Even though the math works in favor of the lower interest and duration using the HELOC, you are trading unsecured debts for a security interest in your home. After more than 20 years working with people through debt and credit concerns, I can assure you that Morphy’s law is very real.
If you are unable to get a significant amount of payment relief through BofA lowering the interest rates on both cards; could not see yourself succeeding with a debt roll up plan; and are more serious about kick starting your way out of debt and into retirement planning, than you are about a decent credit score for a couple of years, consider changing banks.
I generally encourage folks to stop using checking and savings accounts at banks they will soon be looking to negotiate a settlement with. You could keep the accounts with Bank of America open if you like them. Just start depositing your money and paying your bills with BofA again, after your settlements are done. I have a critical report on this, and several other major aspects of settling credit card debts. Read through the last seven I list on that page, as all of them will apply to you.
*** I miswrote…it was never charged off it was closed a few years ago..BOA still holds the account.
I owe BOA $12,540 on one credit card. The original credit card limit was $18,500 of which I had about $14,000 balance on it that was mine. When I wasnt making payments the balance with interest and late charges became $22,400. Just before it was charged off a few years ago I made an arrangement to make smaller monthly payments of $250/month. I have never missed any payments on this agreement but really feel like I want this debt settled already. How much do you think is a reasonable amount to offer for a settlement? It would have to be over 90 days. Should I be offering a percentage or a dollar amount? Thank you!
When you set up the payment deal a couple years back, was it with BofA directly, or some outside agency?
I generally target credit card settlements direct with BofA at 40 percent. I see them for less often enough still.
You are not likely going to be able to negotiate with BofA while you are making current payments. You generally have to fall behind in paying by several months. That means your credit is going to take a hit.
Are you okay with all that?
Hello…..Ok w the credit taking a hit as the debt is actually my 98 yrs old grandfathers. He has no need for a good credit score at this point. I was an authorized user but not a joint holder on the account. He moved in w us 6 yrs ago and I took over payments on it as I have full power of attorney and handle all his bills/finances. The bill was acquired while paying for in home care over the years. He doesnt have a savings and what he gets in ss each moth is really eaten up w his pills and medical needs. The arrangement was originally set up bye me ..directly w BOA in Aug 2011 for $400 a month. In July 2014 after a call to them at that time I was able to knock it down to $250 month which is easier to handle w all his medical bills. I’d really like to settle this bill..its the only outstanding bill in his name…but no way can we swing 40%. At the time the arrangement was made in 2011 he was 5 mo past due..not sure if that matters now or not. Since then we have made the payments on time and they are setup w direct pay from his checking account. Would the fact that he will be 99 yrs old in Sept this year any help in negotiating?? I mean realistically if he passes the debt goes w him and they get nothing more as he has no money or assets in his estate. Logically I would think a $2500 settlement would be smart. If he should live to be 100 all they would get over the next 12 months would be $3000. ???
Oh I should add that in July 2011 BOA initially refused to work out a new payment agreement. They left the account open and wanted $650 month. It was only after they sent the state to our home to investigate if there was any elderly financial abuse going on w my grandfather that they closed his account. After the state determined there was no such abuse BOA then contacted me and agreed to the $400 month payment schedule. Ive tried to right by my grandfather and take care of this but its really become a huge financial burden at this point.
At some point you just have to let go of what cannot be paid. If it were me in the exact shoes you are in, I would stop the payments to BofA, and probably right after you cleared yourself from the elder abuse investigation.
Your grandfather is uncollectable, and that will not change.
Check to be sure you are no longer an authorized user so that this is removed from your credit reports (if it ever was showing up).
I tried many times before and after the account was closed to get myself removed as an authorized user. They said before it was closed I could not remove myself as it was past due..then after it was closed they said I couldn’t be removed because it was a closed account. Either way they were/are making sure its stuck to my credit reports. I have tried to have it removed from credit report but it always stays on. The idea of just not paying anymore sounds scary to me..are you saying they wont try to go after him for the money? I mean yes he doesnt have any money to garnish as he only gets ss and from what I understand that cant be garnished. Like I said I really would like to make this right by just getting rid of it in a settlement so my wife and I can focus on whats really important ..his last months or years (God willing) of life. He’s a good man whom I’ve always looked up to as my hero and the idea of just not paying this for him..knowing it could cause some legal troubles in his name just doesnt sit well w me. As I said ..I dont understand why they are not willing to just be realistic w the fact that a lump sum now is at least better than rolling the dice w how many more months of payments they can get out a soon to be 99 yr old. They offer of 40% is just ridiculous. I’m sorry for taking up so much of your time..I guess I was hoping you would have an idea of how I could get them to be reasonable..thank you for your replies..I really appreciate all you do!
You are a good man. You want to do the right thing. Just understand bank policies can make that impossible.
You can settle with Bank of America, or a debt collector for them too. I do not see many settlements around the 25 percent range, but your situation, and this particular account, may be one that can be targeted that low with a realistic expectation of success. You will not get anywhere with BofA while current, and will need to time your negotiations with the banks settlement policies.
Read through the first stage debt settlement section of the site. I will help you along the way. Try to be ready with roughly 25% of the balance owed today, in the next 5 to 6 months, if you can.
I am not sure to what extent Bank of America can refuse to remove an authorized user from an account, and have that stick if questioned by one of their primary regulators. And I am not all that sure the folks you connect with at BofA can really get you where you need to be on understanding this. I would encourage you to file a credit reporting complaint with the CFPB.
Hello…
I called BOA today and asked to be taken off the direct debit for my grandfather’s account. I explained w him turning 99 this year and his medical expenses out weighing his ss income..being on a direct pay doesnt work for me as I am uncertain on what day if any I can pay his monthly bill. (Just an fyi..in Jan I called and told them I couldnt pay his bill on the 25th of the month as there was no money for it. At that time the woman at BOA said if I miss that payment it would cancel our arrangement and put his account back to before the arrangement and into the 180 days late..even though I’ve been paying the agreement on time since 2011. She had me pay $100 before the 25th and the remainder $150 on 2/6 to keep the arrangement).
Back to today…the man at BOA was pleasant to deal with. He took me off the direct pay and said have you thought about trying to settle this account. At that time he said he could do $7320 which is 60%. He said the dollar amount and 60% which surprised me as I thought they only dealt w whole
dollar amounts. I told him there no way I could pay that to which he then said..well I understand you’re situation but thats the best I can do. The department however could do as low as 35% but not at this time. Again..shocked that he gave a percent and this time w no dollar figure attached to it. He said currently the account balance is $12,200 (originally $22,000). He said the best thing I can tell you right now is to do whats right or your family. I said w his medical bills going up this year and this being his only debt outside of them and w no estate money at all I’m doing the best I can right now. Again he said I understand and I think you need to do whats best for your family and it’s understandable that this might come last in your line of payments. But right now the best I can offer you is the $7320. I thanked him and hung up.
There is nothing about using whole numbers, percentages, etc., to get hung up on when talking to Bank of America about settlement. I usually encourage people to use whole numbers when negotiating the lump sum payoff they can afford, and to not talk in percentages unless the bank or debt collector brings it up. It used to come off a bit too practiced, but it is not a big deal really.
If you want to settle this direct with BofA, can you pull together the 35% in, say 6 months? How long would it take?
I can pull that much together in 4 months. Ideally I was hoping to pay $1500 up front then $525 every 30 days for 2 months. I’m afraid offering that much up front would have them thinking I have more money than I do..and that the additional $1050 wouldnt be enough. Therefore I wasnt confident enough to make them that offer. I’m also feeling like I should miss the Feb payment coming up on the 25th in order to better my chances of a settlement I can afford. Am I way off on this thought or is it just wishful thinking? Thanks again for all your help!
You are not way off at all. But if you can do the 1500 in four months, and have an extra 1000 dollars to add to that within two more, I would look to settle this in about 6 months for one single lump sum payment.
You generally have to be that far behind to get the lowest settlements anyway.
Missing payments was a forgone conclusion, as your grandfather cannot afford them. You kept them going as long as you have, but can no longer. I would skip the next payment if it were me.
So I’m wondering what my next move should be…I stopped the direct pay from my bank….didnt pay the Feb 25th payment..and so far have not heard from BOA. Usually I get a letter at the beginning of the month telling me my payment for 25th is approaching and the amount due. Odd isnt it that I never received that letter after missing one payment? They have sent me nothing thus far. When I called to make arrangements on my Jan payment the rep did tell me I needed to pay something so that it wouldnt go into 180 days late..something about missing one payment would cancel our agreement and go back to 2011 when I was just shy of that 180 mark.
If that happens you will have an earlier shot at settling with a debt collector than previously discussed. Keep as much money in reserve as possible and be ready.
BOA called yesterday. I again explained that I have been paying my grandfather’s bill for as long as I could but unfortunately his medical needs come first and they have risen over the years to the point where I am over extended paying those and this cc bill. The woman on the phone said she understood however even a small payment of $123 this month would keep this from going to a 3rd party. She offered to go over my grandfathers bills and do another financial thing to possibly work out another payment agreement that could be lower than the $250 mo. I again explained that she doesnt get it. This man will be 99 this yr. His small ss checks dont even cover his current medical need/medications. He’s living w me. He has no savings, no checking, no life insurance. There’s nothing to go over..he has nothing. She said well in that case it’s going to go to a 3rd party if u do nothing. I said I’m sorry but I’ve paid this bill since 2011. It’s gone from $22000 to $12000. I’ve honestly done all I can. She said ok and hung up. So my questions are..is there actually another 3rd party? Or is this 3rd party just another division of BOA? Is a 3rd party where I have the best chance of working out a settlement or should I be calling BOA right after I miss this months payment and try to settle w them? Finally, when this 3rd party contacts me…will they tact on more fees? will they be willing to settle up front or do I need to push them off and wait another 180 days? Very confused and anxious to get this thing settled. Thanks again for all your input!
FIA Services is a debt collector connected to Bank of America. Any other collection agency will likely be independent. It is okay to let this go to a collector in order to settle.
Tony, everything you shared with me so far tells me you are in no way on the hook for this debt. You have been paying because you believe it is the right thing to do. I completely support that. But please understand something… Bank of America does not care if your grandfather gets his meds or can afford medical attention. They just want to get paid. They are not being mean about it, but that can be just as cold.
I should point out that I like BofA. I think they have consistently offered some of the best options and results for resolving unpaid credit card bills through settling for less than the full balance owed. And the people you speak to at BofA are just like you and me, and can empathize, sympathize, or any other ize. But their policies are what will be running behind the scenes, and after each phone call you hang up from.
The account will go to a debt collector, or be sold off to a debt buyer. You will likely settle with the third party at this point, but I think it is worth trying to settle with BofA when you miss that payment, but only if you are rock solid about settling in the first place.
The third party can tack on interest if the contract allows for it. Depending on how quickly you choose to settle the debt, and for how low you negotiate, those extra dollars will not amount to much, so probably not something to focus on much unless settling will take a long time to save up for.
Tony – BofA has a choice about how they deal with your grandfathers account. They could have a little box to toggle on the screen for the customer service and recovery reps to flag the file as noncollectable and not to sell or assign to a third party collection agency. They even have software available to them to skip trace your grandfathers assets and show them the probability of collection from here on out is low (so as not to take the word of some cagey senior citizens). But BofA generally fails at providing a measure of dignity to their elder account holders in this regard.
I get where you are coming from. I lost my dad last year. If he had an account like this hanging over him as he deteriorated, and I felt I was honoring him by paying it, your damn sure I would, and for as long as I could, just like you have done. But I am confident that when that became a burden, he would have agreed that enough was enough.
If you want to talk about any of this, fill in the comment box to the right at the top of the screen. I get a copy of those submissions, so I will respond to you directly.
Hi….Ok…so I stopped the direct pay w BofA. Missed one payment and have now received a letter stating the account has defaulted due to missed payments and the outstanding balance has been charged off. It says call before April 28 to discuss payment arrangements or to make payment on the remaining balance of $12,316….(the original balance was around the $22k mark give or take a couple hundred dollars). So at this pt what do I do. Do I call and try to settle? Or wait for another letter? I can settle right now for $36oo. Anymore I will need another month to come up w more money. Thanks again for all your help. I think I am near the end..or at least hope I am.. w this debt.
There is no harm in calling now to negotiate the settlement. It is common for things to take a bit more time to develop in order to get the best deal negotiating (lowest settlement), but with BofA charging off the account with one missed payment, the account has had past payment issues, and is seasoned enough to settle.
This letter dated April 14, 2015 that states it has been charged off is still with Bank of America. The number they r giving to call is 1-866-495-8436
Go for it. That 30% target for settling with BofA is what I would use if it were me.
Hello again…So I called BofA and once again explained my the situation to them. They went through a quick financial which once again showed my grandfather in hole every month. The rep on the phone didnt even want to hear my offer but rather said he would go talk to his manager and be right back. He came back w settlement offer of $5000 to be paid in one lump sum. He said he could not offer a payment plan on that ..not even for a month or two. I offered $3600 and he said w out a power of attorney being sent to them w the raised seal on it he could not even bring a counter offer to his manager. Now I’ve sent them a power of attorney back in 2011 which is how I have been able to negotiate all these yrs..yet suddenly they dont have it and will not discuss this matter further. This is beyond frustrating. The letter said it was charged off and needs to be taken care of by April 28 yet today he said mail the poa to them in Texas. When I stated there is no way I can get a copy w the seal to them by the 28th he said ok then lets get u on a payment plan.What the?? He said pay $93 for this month and call in to pay the same amount by the 30th of every month from now on and this will keep this account on their books and out of collections. Can you pls explain to me what is going on?? I thought it was already charged off and about to leave them..now suddenly I’m back on another payment plan. Yes..I paid the $93 for this month. So confused right now. I thought it would be simple…he offered 40% ..I offer 30% and maybe we meet some place in the middle..instead I got this thrown my way.
They are just doing the job they are trained to do. You need to let the account go behind further. Let them send it to collection. You may even settle for a better deal.
Tony, I would like to offer to help you settle this. There is no fee or cost to you. If the next time you call to negotiate the lump sum lower balance pay off, you experience anything like this, just hang up and call me. I will email you my cell phone number, just hold onto that, or call and talk strategy with me for next time.
Thanks for the great input today Michael.
Just to follow up on your questions:
Law Office of Rory W. Clark
I am calling BofA on Monday to see where the second account is or which company is collecting on it, and I am going to try and settle this one on my own if at all possible, and I will post an update here.
I would like to settle both accounts, but I only have a limited amount of capital to do so, and if I am sued, I will be in touch with you for a referral defense attorney in my area.
Thank you again!
CH
Hello Michael,
Wow I am glad I found this site! Your advise is great and refreshingly accurate compared to what I have read and heard.
I need your advice.
I have three credit cards that I had to stop paying on due to financial hardship and health issues back in 2012-2013. One card was with Citibank for $10k, the other two are with BofA $20k, and $37k.
I stopped paying on all three cards back in July 2013. I researched and selected Freedom Financial to help me. I made monthly payments to Freedom, and last August they settled my Citibank at 40%.
Since then I have been calling Freedom for a update on my BofA accounts, but the only response was “we are talking to BofA and trying to work out a settlement”.
This week I received a letter (30 day collection notice) from a local law firm to collect on the $37k balance for FIA-BofA.
This is the first time in two years I ever heard from anyone regarding the BofA accounts.
I contacted Freedom and they said I just barely had enough for them to negotiate a settlement.
Today a rep from Freedom called me and said the law firm did not accept Freedom’s 30% offer, and countered with a 65% settlement offer of $24k. I declined but asked the freedom rep to counter at 50% with a $13k lump payment and spread the remaining balance over 9 months.
I am now thinking about contacting the law firm myself bypassing Freedom and trying to settle for 50% of the $37k debt and avoiding paying Freedom Financials fees.
Plus I still have the other BofA $20k that I am thinking of calling BofA directly and trying to settle this for 35% / $7k and pay it all off in one payment.
I have the means to do both as I outlined but nothing more.
I would appreciate any input or advice on both BofA accounts.
Thank you,
CH
I am a big fan of doing as much of the settling you can on your own. I am not sure how much better you will do than the 65 percent on the table now for the larger Bank of America balance. Once an in state attorney is collecting on this type of account, your risks of being sued for collection increase dramatically. Who is the attorney working the file for FIA?
Do you know the name of the company collecting on the second BofA credit card?
BofA charged off my 180 days past due account to an outside agency back in December. I have contacted the agency once just to make contact and acknowledge debt. I was not in a position to provide a settlement amount at the time and they were desperately attempting to lock me in and commit to an offer at first contact. After three weeks and harassing calls, I can now offer 20% of the 45K debt. Should I call and firmly state my offer at 20% or should I leave room for negotiations? Also, how do I know if I am dealing with a collection agency or attorney? I am certain they will file suit and judgement due to the high balance. Thank you in advance.
Post the name of the company collecting. I can tell you if they are an agency or collection firm.
Settling Bank of America accounts for 20 percent is not common these days. Can you convey a sincere hardship? Does your credit report show you are paying other bills on time? Are there other collections showing on your credit, and if so, how many?
Hi Michael,
Coming across this site has been very useful to me, so thank you in advance. I’ve had my BofA credit card since 1998 and as of last year ran into some financial troubles that prevented me from paying anymore on the card. Balance is about $11k. I was 30 days late beginning in February 2014. Account closed and was charged off in September 2014. In addition to the “charge off”, my credit report also says that $11k has been “written off.” I’m not sure what that means or if it’s synonymous with charge off. I have been getting collections calls and also a couple of letters from NCB. Most recent later came in a couple weeks ago. On my credit report, it still looks like BofA owns the debt. I’m assuming they have just hired NCB to collect. I cannot afford to pay the full amount and would love to settle. I have not taken any phone calls or responded to either letter from NCB. What’s my best course of action to settle? I’ve read so much conflicting advice that my head is spinning. Would love to avoid the hassle of going to court. Thanks again for your help.
Is the NCB you are referring to National Collections Bureau Inc?
Does BofA show a balance still owed them on your credit report? If so, they likely still own it, and NCB is working for BofA.
I would target between 25 and 40 percent in your settlement with NCB. Can you pull that amount of money together, and if so, how long will that take?
What is the conflicting advice you have read?
Michael,
Thanks for the quick reply. NCB that I’m referring to is this company. https://www.ncbi.com/.
Yes, it still shows the full amount on the credit report. It doesn’t say any other company’s name on that report.
Yes, I can pull that amount of money together within 2 or 3 weeks. Should I just call NCB back and start the negotiation process? What if they just flat out say no and insist on the full amount? Has it been your experience that they will always try to settle the debt for a lesser amount before taking legal action? What leverage do I have to negotiate?
It’s just reading all of these debt and finance related forums and reading about everyone’s different experiences that is making my head spin. Until I came across your site, I’ve read that you should pretty much always send a validation of debt letter. I know this debt is mine and I just want to get it taken care of so it didn’t make sense to me. There are other things I’ve read about “pay to delete”, which to me sounds like a real crapshoot. Your website has been the best one I’ve come across so far, so thank you for everything you do!
It does appear the Bank of America still owns it, and NCB Management Services is collecting for them. Read through the tips and suggestions for calling a debt collector to negotiate.
It is my experience that when you are proactive about settling, and have the money to work with, you can get something negotiated. Your leverage is, generally speaking, the fact that you have not paid for this long, and the likelihood you will pay anything at all is small. That means you can capitalize on collection trends. Your leverage can be more specific to your situation and you personally. The reason you were unable to pay, what ever cash flow short fall persists, other collections showing on your credit reports, all will help to paint a picture of someone who, while motivated to pay for the past, is limited in resources at the present.
Waiting to be sued, or using tactics you may read about online, are often the choice for someone who has no ability and/or no willingness to fund a settlement (even a great offer), or is simply in denial about debt. I look at debt validation as a tool, and one with limited utility at that.
Pay for delete is unlikely in the extreme with the situation we are focused on with BofA and NCB Management Services. Are there other debts that you need to resolve than this one?
Thank you for the links.
I do have another credit card with a $6k balance on it and a car loan. Both are in good standing. I am looking to pay off those accounts as well. Should I wait until I get this BofA account settled before dealing with the other two?
I would not do anything to pay off, or pay down, those accounts that are current. Just keep paying them until the BofA account is resolved.
I’ll leave those accounts alone and contact the debt collector next week and start negotiations. I have a BofA checking account. Are they able to peek at that account? I almost feel like I should move whatever money I do have out of my checking and into a different bank altogether. Or maybe I’m just being paranoid.
I regularly encourage limited use of a checking or savings account if it is at the same bank as a credit card you will be trying to reach a settlement with. You do not have to close your checking account with Bank of America, but I would not use it for anything, and keep very little money in the account, until I am done negotiating and the settlement has been paid. This goes for negotiating with a collection agency for BofA too, especially if you are trying to get a settlement deal from NCB Management Services that is lower than what they have automatic settlement offer approval for.
Michael,
Just wanted to send an update to my situation. I spoke to NCB and was able to negotiate a settlement for $4k. It was relatively painless. The thing that made me most nervous was that NCB needed to know about all of my finances before being able to submit the offer to BofA. Net income, monthly expenses, other debts, etc. However, they came back with an answer within 2 days, accepted the offer and sent me a letter stating that the account would be settled after paying the $4k. Maybe I could have settled for a little bit less, but I was able to come up with the money and didn’t want to deal with the back and forth haggling.
The rest of my credit report is stellar (score WAS over 800), so now I’m just sitting and waiting for it to build back up. So, again, I thank you so much for your time and advice you have given. It has saved me thousands.
Found a BOA charge off for a credit card on my credit reports I am assuming it was from a previous marriage. I have called BOA and they say there is not a balance so I asked what was charged off and can I pay it off. Which I am wiling to do in order to have this removed from my credit report. But they are refusing. Is there anything I can do
Call me at 800-939-8357 ext 2 for a free consult, or fill in the Talk to Michael form in the right column of this page, and I will email you about setting up a time to talk that works for you.
There are many different strategies for settling with Bank of America. I just need some details from you in order to offer the feedback you need.
Hi,
The Bank of America credit card is through an outside agency. I believe it’s been charged off. I hVe another question. I owe comcast tv 250$ . They say they are not allowed to settle for less than 80% after 18 months of non-patment because the account is still owned by comcast and they control what can offer. He said this is true of all utility companies and such, like cable companies. Is this true? He also wants me to give her the number of a prepaid debit card to hold the 80% settlement offer. Is that suspicious at all? Thank you 🙂
It is true that whoever owns a debt is the one that ultimately sets policy and approves of settlements they will accept. But saying you are not allowed to settle for less than 80 percent, on all of those accounts you collect on, has not been my experience. I will give the guy a break in case hw is a front line collector that only works client files where that is true to him.
I would not offer anyone a debt card number of any sort in order to “hold a settlement”. I would not call it suspicious (though fake debt collectors are looking for that info to rip you off), as it is a legitimate collection tactic to get you to commit to the payment. What is the name of the collection agency?
Since this is FIA Services versus a debt collector, should I have a concern with providing this information?
It is rarely going to be in your best interest to provide all of that type of detail to anyone you are trying to negotiate a settlement with. Not unless every bit of the details support what you are trying to accomplish.
FIA Services can get a bit obstinate with some collection files. What percentage of the BofA balance are you trying to settle for?
20%. However, they don’t show a hardship in credit report and they need proof that I have accounts that have actually charged off to prove that are not the only one that I am not paying. Basically they don’t want to be singled off I can pay everyone else. Please help!
Twenty percent settlements out of FIA are not common. Targeting that amount means getting an exception approved, which may be the driver for the documentation request.
Are there other major creditors you are not paying? How many, and can you see that fact on your credit reports? What documents do you have from the IRS that will substantiate the issue there?
I can help you as far as I can with our comment exchange. That is often enough. But there are situations where you need to be talking and working with a pro. I cannot say this is one of those, but it is starting to appear like one.
You may want to consider calling a debt negotiations professional.
My account has charged off with Bank of America. The only thing that is standing in the way of an offer is that they are asking me to prove other defaults. Other credit card charge off letters, IRS potential levies, etc to them. My concern is that they could use this against me or potentially contact the persons identified on these letters. Will I be providing them with more information that they may need. What if Bank of America contacts the charge off attorneys or IRS, etc and indicate I am working with them on a settlement. What should I do or not do?
Who is it that you are dealing with, is it BofA directly (post charge off accounts normally do not stay in house of the bank proper); is it FIA Services; or a debt collector (post the collection company)?