Information on Bank of America debt settlement programs.
There are times when someone may have a problem with paying their Bank of America credit card. Maybe it is due to an unexpected job loss, illness or maybe the overall economy weakens. Regardless Bank of America offers assistance from debt settlement programs as well as other tools with real life examples of potential savings below.
Debt settlement from BofA is an option that is offered from time to time. In general, it is for a customer with a previous strong payment history, that is facing a crisis that was not of their making and it is available as a last resort - when all other options have failed. The terms will vary based on the customers credit profile and financial condition. More information is below, including phone numbers, examples on tips on how to “settle” credit card debt or other bills with the lender.
Debt settlement process with B of A
The terms can vary widely based on factors such as the amount owed, the duration of delinquency, and the debtor's financial circumstances. However if you need help, you definitely should try to settle with Bank of America as soon as possible.
In some cases, as noted below, their customers are receiving good offers. Some of the assistance that is provided prior to a settlement offer (or that may be combined into a proposal) and that is offered by Bank of America includes lowering interest rates to single digits, offering a repayment term of up to five years, and providing forbearance for a number of months.
Bank of America will definitely enforce the terms of the agreement. If someone misses a payment on a lump sum proposal, or if someone is late on any payments of the agreed upon plan, they will lose their debt settlement agreement and it will be terminated. They will then either have to start making monthly payments on their credit card bills for the full amount or the lender will pursue further collections.
In some cases the lender will eventually help them resettle with a new program. You need to ensure you can fulfill the terms of your debt settlement plan before you agree to any deal. In addition to settlement plans, Bank of America as well as other credit card companies offer additional credit card assistance programs that can lower interest rates, extend payment terms, and more.
Find how Bank of America offers debt settlement programs
Several examples are below. We also have a forum that has additional examples on Bank of America credit card settlement and hardship offers as listed here. https://www.needhelppayingbills.com/helpwithbills/viewtopic.php?p=268.
- One consumer lost their in the previous 12 months before trying to get relief. While just recently they received new employment and are now back to somewhat of a stable income, their credit card balance was over $60,000 as it was used extensively during the period of unemployment. After multiple phone calls and negotiations, Bank of America was willing to settle for just $11k over 6 installments. The installments are as follows. $500 for the first payment, 4 months at $600, and then the last payment will be $8100.
- A Reddit user reported settling a $20,000 credit card debt with Bank of America. The lender offered a deal of for approximately 30% of the original amount after being 90 days delinquent which means that the customer had to only pay $6,000 on the $20,000 in total debt. Other examples on Reddit about Bank of America are here. https://www.reddit.com/r/Debt/comments/1dd4myx/boa_credit_card_settlement/?rdt=33199.
- According to another case on Consumer Recovery Network, Bank of America offered to settle a charged-off account with a balance of $5,228 for $1,560, which is about 30% of the total debt.
- A BOA customer had several thousands of dollars in debt. They signed up for a debt settlement program that required them to pay back just 30% of their debt.
- In 2008, there was an example of someone who owed $17,000 on their credit cards. They ended up settling with BofA. The agreement was for the card holder to pay back $4200, and the agreement called for the consumer to pay back the debt over several months, and the payments ended February 2009.
- A settlement for $12,500 on 60K in debt.
- After several calls and paying a couple of bills late, Band of America returned one borrower’s calls and contacted them. They originally offered 30% settlement in 4 installments on this perons’s unpaid debt, but they couldn't afford that deal. So the customer countered their deal, and they told them they could pay at most 10% over 12 months. They countered offer and came back with an offer of 17% over 6 months. The borrower agreed to this plan, as they can manage it and it will allow them to get out of debt.
- Someone settled with Bank of America for 25%. Their credit card was 20K and they agreement to a settlement for $5K. This person even struggled with making one payment in their plan. They contacted BOA immediately, in advance of when it was due, and what they did is they extended the payment at one point. They were great to work with and provided flexibility.
- Bank of America offered a customer who had over $60K in debt a decent program at first, but then came back with better offers. After the bills were unpaid for 60 days, they offered a deal at 35k. The person still could not afford it, so at around 120 days past due they offered another deal at 24k. This offer still could not be met, and within an hour they immediately called back and offered $13k. The consumer agreed to this 13K debt settlement program.
- Someone was desperate for assistance, they figured they had nothing to lose as they were about to go under, so they called and asked for help. They settled the account, which included two cards and 31k total in debt. They settled for 20% on the dollar, or about $6,000, and they said it needed to be paid within 90 days.
- A customer owed $32,000 on two Bank of America accounts. After missing a couple months of payments, and calling BOA multiple times, the bank tried to settle with the customer for approximately 60% of what was owed. The offer was rejected as the customer could not pay it, so after several more weeks of negotiations the parties settled for about 40% of the outstanding debt, or $13,000.
- A customer contacted BOA upon two different credit cards they were in arrears on. After as many as 10 phone calls, the debt settlement plan reduced the amount they owed from $12,000 to $7,000. The customer then had a medical emergency, notified Bank of America, and after proof was given, another 1K was knocked off the amount due.
- Bank of America reduced a borrower’s debt by about 40%. However they also referred this person to a local non-profit credit counseling agency for additional follow up services.
- The terms can include many different approaches. A low income household agreement to a settlement program that reduced the balance due by 5K (or 40%), and also lowered the future APR on any new transaction from 15% to 12%.
Phone number and applying to BOA debt reduction - settlement programs
The main phone number to dial will be on the back of the credit card. Contact them at 855-891-3401 or (800) 500-5306 for more info on debt settlement programs.
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