Bank Of America Credit Card Settlement: Willing to settle for $11k.

I'm over 90 days past due on 17K. I've been in communication with BOA since day one. The only thing they've been offering me is the payment plan. I've told them from day one I can't even make the minimum payments let alone a payment plan. However, still no settlement offer. Any advice?

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Does the type of debt (i.e. balance transfer vs. purchases) matter regarding if and when you'll receive a settlement offer?

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I spoke with a BOA rep who told me that settlement options are available with my account but what is required first is an expense report including my income, expenses, etc. Is this the standard procedure?

Are you dealing with Bank of America or some third party collection agency?

People- Listen to me. It is against the law for them to demand a specific type of payment. Do not give them your bank account numbers or credit card numbers. If they refuse to take payments by mail then send them a cease and desist letter and let them take you to court. It' not going to look good when they have to explain to the judge why they demanded access to your personal accounts.

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Wait a little longer and ASK them about settlement. It was around 4 months late when they started talking settlement with me.

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Hi all,

I have two accounts with BOA, one business and one personal. They have been charged off for over a year now. I would like to see if I can settle the debt, but I don't know who owns the debt now.

A collection agency contacted me 6 months ago, but I have not heard from anyone since. I don't want to pay the collection agency if they do not legally own the debt.

I sent BOA a settlement letter, but no response.

Any advice as to how to settle this?

call fia and find out who owns the debt and then approach them. if fia sold it to jdb, you need to deal with them.

I was asked to provide a debit account for settlement. I've seen some posts here that people close debit account and pay by Cashier's check instead. Is there advantage paying with Cashier's check? ...especially when bank want you to use your debit account?
Thanks in advance

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I have $100 in cc debt - half with B of A, and the other half with other cc's. I entered into a debt management program for the other cards last year and with B of A with their own type of debt management payment plan. In the last year I have met all payments and managed to reduce total debt by $25K to bring it to the current $100K. But, it has been a huge struggle and we are choking - it essentially eats up my entire income and we have a large family (hence the debt, and we have learned our lesson), and can't maintain with only one income available (spouse's). Is it possible to maintain the debt plan with the other cards and stop paying B of A and try to hope for a settlement? I want to pay something, but I just can't do all of it anymore. We are constantly one step away from foreclosure and neverending cut-off notices from utilities....we just want to get back on our feet and live within our means somehow. Does on plan affect the other?

I am in the hole $38k with BofA. Today, I am at 170 days and am due to hit the next billing cycle on the 18th, which is the 180 day point. I've been in contact with FIA Card Services in hopes of settling the account for an amount I can borrow from family members. They are willing to settle today at 25%, which is about $9.6k. I was told by the account manager that this is the absolute lowest they will ever accept for settlement and that once the 18th arrives, my balance will only increase and the settle offer will be higher. Although my account reaches 180 days in 10 days, I was told that they keep accounts until the end of the month, which in my case is the end of Jone. At this point, does one take the 25% settlement offer or wait until the next billing cycle, which would be less than 2 weeks away from charge off? I'm curious to see if anyone has actually hit the 180 day mark and was able to settle for less than 25% right before charge off.

Anyone?

I left my conversation with the account manager that I can only borrow $7.6k, which is 20%, but they are not willing to take it. It's a $2k difference. Gamble or not gamble?

we have gotten on payment plans with all banks EXCEPT BOA, and the other creditors do not ask for much info at all.. we have 3 BOA cards, two of them being amex. the first time we missed a payment was dec 09 and jan 10.. i have talked to them 4 times explaining our situation, for them to take our info (and they want to know all your business) and tell me that we DO NOT QUALIFY for any of their payment plans. ok, we have been squeeking by to make the past due amount each month since. boa became a thorn in our side almost 2 yrs ago jacking up rates & we had never ever been late or missed a payment. we are now facing either stop paying everyone altogether and try to negotiate settlements OR filing chapter 7. we have been using our savings along with his pay to stay afloat but have quickly ran very low on the savings and no longer able to dip into it due to my medical conditions. i have been fighting ssa for near 5 yrs and still fighting them with attorneys at district court level now. we do not want to file chapter 7, but we may not have a choice if ssdi dont go thru soon. the govt is messing us up coming and going. you have to be near dead to get approved for ssdi, and then the credit card reform didnt do much good cause they gave the banks nearly a year to have at us like they wanted.

the list of expenses they ask for, you can do without their asking. it is called an income statement.
make a chart titled "monthly expenses", list monthly expenses one per line/row: taxes, home mortgage, car payment, insurance (home,car,life,health-not taken out pre-tax), utilities, child expenses (daycare,etc), other secured loans. at bottom put the total of monthly necessary payments. leave a line blank, next line put in amount of credit card payment for that bank, next line put in total of other credit card payments. next do a total of cc payments. at bottom add total cc payments & total necessary expenses, for grand total.
you can do an assets & balance chart along with an income statement as well. and tell them you are insolvent and have no money left each month to pay them.

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This is a great offer. You will jeopardize it by not making the last payment of $8100. I would suggest a solid game plan for coming up with the cash before committing to anything. BOA is making a good faith offer and you should make an agreement in good faith as well.

• find the funds
  
• make the payments
  
• thanks BOA
  
• move on to financial wealth and freedom!
  

is anyone getting BOA to post the account as "paid in full" and avoid getting a 1099 for the amount forgiven?

how long before BOA will sell the debt of move it to an outside agency?

120 days, 180 days?

Are you aware that the forgiven amount of $47,500 is considered taxable income? I do not think that you will have the ability to pay your friend back through income taxes...or did you get BOA to state that the account was "paid in full"? Quote:

Has anyone had success getting just "PAID" on their credit report? Not "paid in full".

Whats the lowest FIA (Bank of America) will do? I was offered 21% on $45k

They are willing to put it in writing...

Hi Stever....
I was able to settle my husband's accounts at several banks including BOA, Cap one, Chase, and Citi. Citi was probably the hardest in the later stages;however none of the major bank would give me a "paid in full" and all will give me a 1099.....After all the struggle to settle at over 120 days late, I did not want to keep not paying the settlement in order to try to get the "paid in full" ....I have not seen anyone here or read about anyone who was able to get that with any of the big banks....Just what I have seen! I wished, but the answer was no all the way around and I had superior credit for many years prior to Jan. 2010

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As long as your debt is higher than your assets you do not have to pay taxes on the 1099 for forgiven debt.

Dear stevor....please read a lot of threads from people who have actually settled....that will help you the most!!! It is the regular people here who have done settlements who are the most helpful at least for me.
For me, BOA was the easiest to work with....but none of the big bank CCs would agree to put Paid in full.....that is just how it is from what I can tell....maybe CAs will do it, but everyone I spoke with said it would and could not be done! I actually had a great Senior accounts person at FIA help me and she offered a lot of help, but still said she could not do the PTD (pay to delete) or paid in full......

I just received a settlement offer from BofA for 25% on about 60K of debt. 180 days is up, but the letter states I have until the end of the month to settle. I'm hoping for a 10% settlement offer before the end of the month. If not, it will be sold to a collection agency for around 5-7 cents on the dollar, and I'll give them a shot at 10%.
If that doesn't work I'll let it play out for another 3.5 years (California debt limit)and just hope I don't get sued in the meantime. If they do sue (very unlikely...less than 5% are sent to legal), then I'll open negotiations and start again. The problem with letting it play out is your credit takes a hit for years, as the past dues just keeping adding up. The upside is you never have to pay and don't have to worry about a 1099 showing up.

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I contacted ab attorney friend to help negotiate 27k..have missed a single payment thus far. Do attorneys have a better shot at the negotiation process than we do?

Greetings flight,

If you miss a payment usually the settlement is dead.
Then the creditors just treat it as a payment and the cycle begins again.

Be careful,
King "Kash" Jabba Labba

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hi all! PLEASE ADVISE!

We are just now drafting a settlement offer for a 22k balance with BoA (formerly an MBNA credit card).

We are quite lucky in that we just got an inheritance that will let us pay it right now, in one payment, so... does anyone know what a realistic figure would be if we want to take care of it quickly?

Will a higher offer (30%) get a swifter response? Is 20% still realistic? How much haggling did you have to do?

This thread was started in 2008--does anyone know how things have changed in two years?

How do I approach B of A to settle my $28,000 debt. They had set up a payment plan for me with no reduction in the balance. I was able to handle it until I lost my job. Now I am 3 months behind and if they settle it for one half or less, I could find the money to pay it off. How do I begin the process?

Call them up and explain that you now have no income. You lost your job 3 months ago and that's when the payments stopped. Refer to the payments that you did make and your concern about the debt and getting the issue resolved. Explain that you feel bad that you couldn't continue to make the payments but without any income coming in, it's simply impossible and see what they suggest. They will normally talk about trying to make smaller payments - then step in and suggest that "what if I could borrow some money from my family - that may get the issue resolved". Ask if you could get the current balance and then you would talk to your family and see what they could come up with to help. You are very concerned about getting this taken care of, etc.

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you can also wait and not communicate anything and you could get a law suit instead. You should always keep some type of open communication with the creditor, in my opinion. You already have a record of contacting them and attempting to work things out. If they are not willing to settle, they at least know that you are not working and that there are no assets - which will slow the escalation of legal action and push settlement in your favor over the next 30-60 days. I recommend that you don't ignore them.

My original post was back on page 8. Fia did not end up offering suitable offer and so 180 days came and went. BOA had sent end of June a final 'unfortunately, we have no other alternative.' notice that charge off may occur next month. Now the debt is with SRA. They have worked a deal for basically 25% and it sounds legit in that they supposedly heard back from BOA on their recommendation and are going to be sending me fax of what the settlement entails. They said boa did not sell debt and I can only assume it will read as 'charged off' next credit reporting cycle. I ask does anyone know of SRA and does it make sense that they are telling me it will read as 'settled'? That is what they telling me but I've yet to see the paper. Maybe I should call boa and confirm if they charged it off or sold it? If they 'charged it off' but are holding the debt internally and having a collection agency make recommendation or a deal that they can still change it from 'charge off' to 'settled' or is it all bs and not to believed. Is having a charge off from boa and a settled from sra a possability or is it just going to be one listing?

bump bump

I have a general Question. My credit is already screwed because i am 6 months late on my HELOC. I am planning to settle 13k of Credit Card Debt. I have 16k of Credit Line on BOA card. I was thinking, since my credit is already screwed, use up the entire BOA credit line and then stop paying from next month and then try to settle in 6 months. Do you think this action will invite law suits.

Any advice from a nice Debt Samaritan would be appreciated.

I received my first settlement letter from BofA this week. It was for 30% of my balance. They basically asked me to come up with well over $12K in 93 days. I don't have that kind of money nor does anyone I know (to borrow from). That was my first and only settlement letter from BofA. Could anyone tell me if they might offer me a better settlement before I get charged off? Having said that, what happens when your account gets charged off? Any info would be greatly appreciated! Thanks!