Bank of America credit card hardship programs.
Bank of America has a number of hardship programs they offer to customers in an effort to help them pay their bills and address any debt they may have. There are credit card payment deferrals, interest rate deductions, debt consolidation loans, forbearance and other solutions as part of their credit card hardship programs.
Each request for assistance is assessed on a one off basis. Both emergency help as well as long term solutions may be offered to help with credit cards. Some of the specific long term resources offered by Bank of America (B of A) as part of their hardship programs include debt management plans, lowering interest rates, reducing or waiving fees, and lowering your monthly minimum payment.
Below you will find the phone number to call to apply. Also read about real life examples of how Bank of America customers are receiving help from these resources as part of hardship programs.
How people are getting help from Bank of America hardship programs.
One individual recently completed a settlement with B of A. When they started the process of contacting the bank they were 60 days behind on their bills. They cut their debt by almost 40%, which ended up being a reduction of about $18,000. The customer stood their ground as to how much they had to offer the bank and work with them on. The person also mentioned that they had talked with an attorney and that they qualified for Chapter 7, but that they did not want to do that and would rather pay off some of their debt.
A customer had an account that was about 8 months behind on their regular monthly payments. They called Bank of America multiple times, and asked for a supervisor each time. After about the third call, Bank of America initiated a process that eventually reduced their balance by about 75% off. They also allowed the customer to skip some credit card payments as part of a deferral program. They turned out to be easy to work with.
Another Bank of America customer owed 30K at an interest rate of 17%. They called them and said that they are having a hardship paying their monthly payment. He said that his wife lost her job, went over the details of their expenses, and the lost income from the wife. So B of A came back and offered a deal. It involved closing their credit card account and reducing the interest rate down to 5%. Doing this lowered their payment to $586 per month for 60 months. This offer saved them thousands of dollars in interest expense.
Someone settled 2 credit card accounts with BOA. One of the settlements was fairly quick and easy. It was done at the 180 day mark, and they agreed to settle for 25% of the balance, and had 3 months to pay it off. The monthly payment was lowed and more time provided as part of the Bank of America deferral program.
The second account was a little more difficult, and it took a year and settled at 35% of the balance. All fees were waived and not charged. The person did try to work out a hardship plan with them before they got into so much trouble and needed to settle, but they did not cooperate. Their credit scores did go down significantly, but it would have been worse if they filed for bankruptcy.
Another customer took a more polite approach in applying for hardship. They contacted the bank to ask about forbearance as well as interest rate reductions. In addition to that, the customer of the bank also answered the call every time Bank of America called asking about the balance due on the account. They politely, consistently told them that they just have enough savings to settle for 25% right now, but that they would be willing to pay more if they give me more time but there is no guarantee that they would have the money in the future.
B of A and a collector kept calling, asking them to pay, and the customer kept telling them the same thing, very politely and consistently. The person made them understand that while they should be responsible for paying 100% of the bills, but the fact was they just didn’t have the money at the time. Bank of America did say their credit scores will be badly effected, but they already were. They ended up paying $10,000.00 for a $55,000 debt.
An account holder missed about 3 payments. Their advice is that when you call and ask about the BOA hardship program, never accept the first offer they throw out there. The first offer was a 5.5% fixed interest rate for 5 years with a monthly payment of $180 per month. The customer told the customer service rep that they could not pay $180 because they had to eat, pay for utilities, and put gas in the car.
Bank of American than came back with a better offer of a 0% fixed rate for 58 months with a payment of $160 per month. A great offer in the lender reducing interest rates as part of the emergency hardship program available on their credit cards. So it may be beneficial to not accept the first offer but to instead negotiate further.
Applying for credit card hardship from BOA
Be sure to contact Bank of America at (800) 500-5306 to learn about what options they can offer you, whether a deferment or another form of help. As noted, customers may need to speak to a supervisor or make multiple phone calls or negotiate in order to get assistance from the BoA hardship program.