Negotiating with Bank of America

Oh, I forgot to mention this is an unsecured credit card debt.

I see no fault in trying. You can always make the settlement proposal to them. Its actually better to deal with the original creditors than dealing with the collection agencies. But in order to make them the offer, you have to quote a reasonable amount, say about one-third of the debt or more. Most of the lenders will agree to settle the account between 50%-70% of the total loan amount.

If you don't have immediate fund to settle the account, you can ask for a repayment plan. But while negotiating, always show your eagerness to pay-off the debt.

It is best to settle with the original debtor. They have their interest in mind, in my experience they wanted to drop all the charges they added. But they are greedy.

I tried to settle with BOA last year. I offered to pay the full amount owed on my credit card if they would either lower the interest rate or eliminate the interest until I could get it paid off. They refused to work with me, so I had no other choice but to stop making payments. In December they charged it off and sold it to a collection agency that is trying to collect on it now. I have no assets and my only income is from social security.
It is difficult to understand why Bank of America would not work out something with me that would not only help me but they would be getting paid their money as well. Must be greed on their part. Good luck on your negotiating with them.

Your social security benefit is exempted form garnishment, unless you have saved quite a substantial amount on your account. However, amongst the exceptions the following can garnish even your social security benefits;

• Federal tax Bills
  
• Child support and alimony
  
• and, Any form of Non-tax Federal Debts

Personally I wouldn't try and negotiate until you have the funds because sometimes they come with a deadline of the offer expires.

That's the only problem though...if I wait until I have the funds, it will be with a CA instead of the original creditor. Would the CA be willing to give a better deal than the OC?

Depends on how much the CA pays for the account.

Kimberly, After the account is turned over to a CA for collection,you can always go back to BOA and attempt to negotiate a settlement. When you have your money in hand, call BOA. Tell them you refuse to deal with a CA.

They will accept a better settlement offer a few months down the road anyway.

I don't know how long BOA tries to collect before selling the debt.

I don't think BoA keeps their papers long. We had thought we had cancled an account with them. We were negative 2 dollars then they added their fee's for 3 months then sold it to NCO.

Negotiating with the creditor doesn't stop them from sending it to collections unless they are recieving payment and even then if it is outside of the terms of the original contract it can still be sent to collections.

BOA doen't keep the accounts very long, they charge it off and then it is sold to a CA; once it is sold you cannot deal with BOA. You have to deal with the CA that bought and now owns the debt.

After charge off,the original creditor usually assigns the debt to a CA for a few months before selling the debt.

I know there are probably exceptions, but most make an effort to collect the debt before selling.

We settled with BOA before charge off. If I had it to do over, I would have waited a few months before trying to negotiate.

Oops, forgot to sign in.

Thought I would update what happened when I called BOA. Honestly, they were really nice to work with. When I called, they offered me a payment plan or a settlement of $2400! I didn't have to negotiate, that was their offer. I accepted the settlement, gave them $100 with the agreement that the rest will be paid within 60 days. They told me if something happens, just let them know & they will work with me. Feels good knowing this will be all done. However, the one bad thing is they put the debt on my husband's credit report as well even though he was only an authorized user, not the primary person. I called them the next day & they told me that they will remove it from my husband's credit report & that it could take up to 30 days.
All in all, I'm very happy. We decided to refinance our house instead & now I will start the settlement process with the other 4 cards I had. Hopefully, they will be as easy to work with as BOA was.

Thanks for all of your replies!

Kim

WoW, BOA offered to settle for 2400 on a 9700 debt.

I would say that is a very good reason to be pleased.

They were not that generous with us when we settled with them in 2006.

They offered to settle for 75% and refused to budge.

watch out for BOA they are known for offering settlements by phone that are extremely low and then still selling acct to another company you want to make sure you have there offer in writing or a settlement offer and please pay by the deadline line if not you have no dispute if not paid per the written agreement remember if it is not in writing it didn't happen

A 2400 offer of settlement on a 9700 debt sends up a red flag that you should be extremely cautious.

I did get it in writing via fax. That was their offer! I was shocked myself. Since I have it in writing, I am hoping that all goes through ok. I will keep ya'll posted.

I'm a nasty, suspicious, old Wulf, but... I wouldn't take a fax for anything other than toilet paper. I'd want it typed/printed up, on company letterhead, and hand-signed in ink. Especially on an offer like this.

I've had a good experience with negotiating with BOA too. They will work with you, just don't let it go too long. I had a $7000 debt that they negotiated a payment plan for $160 a month @ 3.25% interest. You have to be approved for their hardship plan. They will work with you, in case anyone else needs to know:) Don't wait till the account's charged-off.

I tried with BOA and they kept giving me a run around. I did not know they even turned me in to a CA. I had now warning or anything. I tried to get in and make a payment and it won't let me. After that I was comletely locked out of my online account. They gave it to Tritium. I thought it was the law I hate to get correspondence or something when there was a problem. I was only two month behind and I didn't know anything was going on. Help

I called BofA after struggling to make a rather high monthly payment each month and racking up finance charges. They didn't lower the total balance, but reduced the interest rate, lowered/settled on a lower monthly payment as long as it was an automatic withdrawal each month, stopped any late charges(since I was already over 30 days past due). They closed my credit card(which anyone in this situation should not have one open anyway) and it shows "closed by consumer" on my credit report. After 4 months of consistent payment, they stopped reporting "30 days past due" on my credit report. Basically it became a fixed loan over 5 years. Of course if my situation changes for the better, I can pay more than the regular payment and pay it off sooner.

M.

I would like to ditto user kimberlysnewell-well's experience. I had a 6000 dollar debt and have closed a roughly 2000 dollar settlement. I also have discover card debt. I find it very hard to work with discover.