Help with Bank of America
Date: Sat, 01/23/2010 - 17:05
I have fallen on hard times financially, and was unable to pay the payments on a boat loan that I had with BOA. The boat was repossessed about two months ago, and sold at auction for much less than it was worth. Anyway, today I have received a letter from BOA that says the following:
"Your debt to BOA has been referred to the Recovery Department for collection because you have defaulted on this obligation. Under the terms of your agreement, with BOA we have declared the entire balance due and payable.
You have ten days to voluntarily send the entire balance to this office at the following address:...
If we have not received this entire balance within 10 days, we will use any collection means available to obtain payment in full."
I have had perfect credit my whole life up until I was laid off from work and was unable to find another steady job and was unable to pay any bills other than the essentials. Things are just now starting to look up as I have found a good job, but still have no way of paying the almost $9000 that BOA says I owe them.
So my question is, what do they mean by "we will use any collection means available to obtain payment in full"? What are they legally allowed to do?
If it matters, I lived in Florida when I took the loan for the boat out, but now live in Georgia.
Thank you for any help you all may be able to provide.
It is a standard letter that banks send out when someone default
It is a standard letter that banks send out when someone defaults on a loan. It means they sold your boat for less then the $9000 you owed and now they are going to sue you for the difference. I would call them up and try to work out a settlement you can both live with. They don't want to spend the money to take you to court, I am not sure how much money we are talking about, is 9K before or after the sale? If you don't have anything to lose they might not even follow thru with the threat. I would tell them you don't have any money and no assets to take and they will say sorry but we are going to sue you anyway. They want you to get scared and offer to pay, I would wait and see if they come back with a settlement offer. If they come back with a lawsuit, then you can contact them about a settlement to avoid court. I would not panic.
Quote:So my question is, what do they mean by "we will use any c
Quote:
So my question is, what do they mean by "we will use any collection means available to obtain payment in full"? What are they legally allowed to do? |
This means that they can hound you and also can sue till you pay the loan off.
Bank of America is quite easy to deal with. You must call up the lender to find out more about the alleged debt. Normally, when the repossessed item gets sold for an amount that is less than the amount owed on it, the borrower remains responsible for the deficient amount.
