WTF??? BoA processed payments AFTER BK notification!!!

[dunno]

I am on the phone right now (on hold, of course) with BoA.

Before filing, and when I was still trying to fix this mess on my own, I set up a loss mitigation plan for my cards. Something about a 5 year plan, reducung the balance and the % to like 4%. After agreeing, I paid once, then cancelled for the following month.

They cancelled ONE payment, but not the one for November!!

I have a call center on line (on hold again)
they're telling me it's 2 separate departments and there's nothing they can do about it...

[StartingOver08]

Notify your attorney right away. It is a violation of the stay. Let your attorney drag BOA into court for sanctions.

[BROKENN]

Yep, my atty said it was like $1K a pop. He told me to let him know if any violated the stay.

[JRScott]

I'm with the others notify your attorney immediately (as soon as you can..probably Monday now).

[StartingOver08]

There is an interesting article about creditor's violating the stay. I am pasting in just one of the paragraphs here, but the entire link is at the bottom of the paragraph. Please read it. BOA does not have a leg to stand on by taking your funds from your account after you have filed.

Until 1984, the only means of enforcing the automatic stay was the imposition of sanctions for contempt of court. Today federal bankruptcy laws provide a private cause of action for an individual injured by any willful violation of the automatic stay. The injured individual is entitled to recover actual damages, including costs and attorney's fees. Also, it is not only the debtor who may be harmed by the violation of an automatic stay: other creditors may be effected by the confiscation of property on which they have an interest. These creditors may be entitled to damages as well. What has been a matter of differing opinion among courts is whether a corporation can be considered an "individual" who may be injured by the willful violation of an automatic stay. Generally speaking, it is not unusual to include corporations in the legal definition of the term individual, but courts differ on their interpretation in this particular instance.

Here is the link to the entire article: http://library.findlaw.com/2000/Sep/1/131041.html

Go get um!!

[dunno]

Thanks everybody!

Copy of email I sent via BoA secure email on their website:

VERY IMPORTANT VIOLATION OF FEDERAL BANKRUPTCY LAWS:
One of your departments has violated the stay granted me (and my other creditors) when I filed for bankruptcy by processing payments from a payment plan I agreed to -and then canceled- to PRIOR to the bankruptcy filing on October 16, 2008.
1. I agreed to the program with your loss mitigation department in September.
2. I was told then that if I did not pay 3 payments in 3 consecutive months, I was automatically disqualified from participating in the program.
3. I called at the beginning of October to cancel the October payment
4. I filed for Bankruptcy Oct 16
5. I was called by Loss Mitigation the following weekend to inquire whether they could help me, as they had not received my October payment.
5a. I told her that I had filed for bankruptcy and could not participate in the agreement. She acknowledged and took my case number and attorney's name and phone number.
6. I receive a letter from your bankruptcy department acknowledging my filing and closing the accounts, dated Oct 30.
7. on November 7 I find 4 payments ($250, $70, $60, $50) processed from my bank account!!!!!
8. When I called to correct this on Oct 8, the "account manager" had the audacity to inform me (after consulting with her supervisor) that the payments were agreed to prior to the bankruptcy and are handled by a separate, independent department, so nothing can be done. I told her specifically that according to federal bankruptcy laws, none of my creditors are ALLOWED to demand or accept payments after I have filed bankruptcy, and neither am I ALLOWED to pay creditors independent of my bankruptcy repayment schedule. I was told the bankruptcy department was open from 8-2 according to her schedule and she transferred my call. I was disconnected.

I expect an IMMEDIATE refund of these moneys to rectify the error and to alleviate the personal hardship this unexpected processing of payments from both a canceled agreement AND in violation of the stay. Please call me at xxx-xxx-xxxx, or xxx-xxx-xxxx to assure me that BoA will overnight a check or checks refunding these funds collected without regard to my cancellation of the agreement prior to the bankruptcy filing and despite knowledge of the bankruptcy filing.

Without immediate action on your part, I will assume you expect me to notify both my attorney and my other creditors listed in the bankruptcy petition.

Copy kept on file if needed for future communications.

[dunno]

Was I too harsh?

[StartingOver08]

Not at all. I would still inform your attorney and get BOA hit with sanctions. They are counting on you to just accept the funds back. Not good enough. You are NOT the first person to file BK. You will not be the last. BOA knows the process and they are relying on your good nature to not inform the court. I say, take them to the cleaners. It is not the amount of the violation - it is the audacity of the violation.

[dunno]

I will email my Atty a copy of the communication and let her advise me.

Right now, I just need the money ASAP!

Thanks!

[ready2puke]

Am I reading this right? Sorry if I misread it but, on number 8 it said you called Oct.8th. Should that not read Nov.8th ?

[ready2puke]

Also since their are 4 payments can they get hit for 4 sanctions? 4,000...wow that would be sweet!

[dunno]

Yeah - you're right - I changed the original to November 8 - yesterday.

[Flamingo]

What happened in your situation was they acknowledged receipt of your paperwork for your file on 10/30 but whoever was supposed to cancel out the withdrawals for your payments with your bank either was not informed in time or it was or still is in the "to do" pile. You would think a click of a button in today's world would take care of everything but when you file BK, things are switched between departments (to their BK dept.) and sometimes things just don't occur overnight and things happen as to what you encountered. The problem here is that since you are now represented by an attorney as to filing BK, he may have to work with them to get your funds back and they may not work with you directly. I could copy your attorney on everything you said and did so you can get this rectified satisfactorily.

[dunno]

I sure hope it is rectified FAST - otherwise I am SCREWED. That is a lot of money!

[StartingOver08]

What happened in your situation was they acknowledged receipt of your paperwork for your file on 10/30 but whoever was supposed to cancel out the withdrawals for your payments with your bank either was not informed in time or it was or still is in the "to do" pile. You would think a click of a button in today's world would take care of everything but when you file BK, things are switched between departments (to their BK dept.) and sometimes things just don't occur overnight and things happen as to what you encountered. The problem here is that since you are now represented by an attorney as to filing BK, he may have to work with them to get your funds back and they may not work with you directly. I could copy your attorney on everything you said and did so you can get this rectified satisfactorily.

Flamingo, I understand where you are coming from; however, I disagree with part of your statement. You are definetly RIGHT when it comes to informing the OP's attorney. I agree 100%.

However, I too had two separate hardship arrangements worked out when I filed. One was with BOA and the other was with CHASE. In those arrangements I had an auto draft from my account. I called and cancelled the autodraft before filing BK. I canceled the entire program BECAUSE I was filing BK. The auto drafts stopped. I filed and so far the stay has not been violated.

The OP's case is different. He stopped the hardship program. He called BOA and they continued to auto draft his account. IT IS THE CLICK OF A BUTTON. This is not a difficult thing to do. BOA continued to draft his account without permission. In my opinion, this is worth sanctions from the court for the OP. Even if all the funds go to his attorney and the trustee - BOA needs a lesson.