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.
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.