Trust this Settlement???

I have about 55k in CC debt with BofA on 3 cards. I missed my 4/5/09 and now 5/5/09 on the big one and the other 2 are like a week after. Today I got a call from BofA asking me what's going on ect.... After talking to them some time they said they could settle for 50% of 55k that would take care of all 3 cards. I said that the most I could come up with would be around 30% that’s 16k. He put me on hold then came back and said they could do that for me. I was pretty happy since 30% was kind of the target I was looking for.

Now for the part I need some help with, he said that it would work this way. I need to send in my min payment on each account and that I would then get a letter faxed or mailed with the terms of the settlement. He read over the letter and it’s your basic form letter. Then when I get the money he said they like doing over the phone xfers so just have the money taken out of our bank account. Then I would get the final letter saying its all over and done ect….. I also have until the end of this month to start the ball moving on this otherwise he can not say if next month the offer still stands. I did spend about 10-15 mins going over the fact I would like them to send me the letter about the settlement then I could just sent the amount, but he says they need the min payment in first to start it going. The 30% is nice but I hate the way they want the money part to work. Anyone had to do it this way and is it ok… or should I just wait more and see if they come to a different way of handling the payment part?

personally i would be very cautious many people on this forum will tell you that they go back on thier word if its not in agreement in writing first. hopefully someone will give you more info but i will tell you this, once i had a payment withdrawn from my account that way, and they double dipped me overdrafting my checking and bouncing all of my bills. it took them almost 2 months to get my money back. I had to feed my baby from money i had to borrow off of people and all my utilities were threatning to shut off my service it was a nightmear. please be careful!

my story with BoA I had 2 CC with BoA $14k and $10k settled both for 30% here is how it worked in my case, they asked my for 1 small payment for each card and remaining amounts in loop sum next month, they said I will get it in writing once first payment are made since these were relatively small payments comapring to total owend I had no problem especially because I open new checking account with another Bank at the very begining of my settlement process and used old account only for settlemeny payment hasn't been keeing any money so there was nothing they could take without my knowladge, I was depositing only what I agreed to pay.
After 2 initial small payment but before next larger loop sum payments I called BoA and asked them to fax my over settlement agreements in writing they did. Also few days latter I received another letter for each account basicaly saying same thing so it works pretty well for me

you have nothing to worry about except if you also bank with BOA. As long as you ask to add a check number so you can have a canceled check as a receipt you have nothing to worry about.

you have nothing to worry about except if you also bank with BOA. As long as you ask to add a check number so you can have a canceled check as a receipt you have nothing to worry about.

Ahhh joe777 sounds like the same as me. After you made the first small payment did you go ahead and make the large one to settle the account with them? or are you still in the stage? If your done, after the last payment did you get a letter saying you settled and its all paid off ect......?

If you do a check-by-phone payment and set up the remaining payments on the phone right then, BofA/FIA will usually send you a settlement letter at that point. The best thing to do is have a fax machine and get the agreement faxed before the first payment date.

after first initial small payment (check-by-phone) and arrangement for final payment as post dated check next month I requested to send me by fax letter saying this is settlment and my account will be settled, I got this next day to my fax on BoA leterhead paper, few day later I got similar latter from FIA confirming settlement agreement and I was told I will get confirmation within 30 days after final payment is made which did not passed yet so I cannot tell yet but all looks promising and have had no problem so far

Thanks for the info......... going to talk with them again before the end of the month. Still trying to work something out with my House and the bank trying to get that mod. No use in paying BoA 16k if later on I have to do a Chap 7 or 13 if my bank wont work something out on my house.