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BofA offer

Date: Tue, 07/28/2009 - 12:42

Submitted by anonymous
on Tue, 07/28/2009 - 12:42

Posts: 202330 Credits: [Donate]

Total Replies: 4


I need some advice...I am within 2 days of my 2 BofA credit card accts being 'written off'. They have offered me a 20% settlement paying 2 months at $1300 and the 3rd and 4th month at $2600. My spouse lost a FULL income and we cannot do these high payments. We also have our checking acct with BofA...so of course I'm freaked out over that!

Is there any advice from anyone as to what I should ask BofA? And if it does 'write off/charge off' then what happens then? I feel like banging my head against the wall...because I do want to pay this...but just cannot do it within 2 days.

Any suggestions will be GREATLY appreciated


Written off means that they are charging off the account from their perspective. They are assuming it is a "bad debt" and is uncollectable. By charging it off they are allowed to chalk it up as a loss on their balance sheet. It would be like you owning stock, selling that stock for a loss, and using that loss to offset gains when you file your taxes. That is exactly what the CC company is doing when they "charge-off"

Now, what does it mean for collection? That depends on their interest and course of action. Either they sell off to a third party for collection, in which case they wipe their hands of the debt, the 3rd party buys the debt for pennies on the dollar usually, and then attempts to collect the debt and keep the profit. This is an EXTREMELY lucrative business. Or the CC company will internalize it and hire law firms to collect on their behalf. It is my belief this is not that much different than third party.

We had multiple BofA accounts. We had one sold to third party, which we havn't heard much about in 18mo, and one that they kept, took through the arbitration scam and got a judgement for. If they won't budge on the payments, let it go through charge-ff, it will buy you some time to get the funds together, and let whomever gets it next pony up an offer to you for close to the 20%. That's my advice.


lrhall41

Submitted by sbartell7 on Tue, 07/28/2009 - 22:24

( Posts: 14 | Credits: )


Jennlisa - did they actually tell you that you could pay your settlement in 4 monthly pmts?? The reason I ask is that I have been trying to settle with BOA for 3-4 mos. and they insist they have to have any settlement within 90 days - or 3 monthly pmts - and they will not accept the offer I have made. I am also 1 day away from charge-off with them; however, I have heard nothing from them in over a week. I am leaning towards letting it charge-off since I cannot pay them what they want right now.


lrhall41

Submitted by on Thu, 07/30/2009 - 08:28

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