Bank of America Settlement (25%)

[lt2828]

After 120 days of ignoring phone calls from BoA, I finally returned one. They were actually surprisingly nice, and offered 25% (which I don't have). I have about 15%, and she's unwilling to go any lower than 25%.

Has anyone settled below 25%? She's also very pushy and insists on collecting a $600 payment from me otherwise it will be sent to a different "office" on the 30th and she claims they don't settle below 70% in the next office (smells funny). Do you think the next office may settle for 15%? She said, it will still be within BoA not sold to a CA.

I know you are not supposed to make a payment since it starts the clock. At one point, I even asked her how it works, and she was like well you need to make a payment today and then I mail you the settlement agreement... Smells like a trick too....

Balance is 2 accounts totaling about $45k

[DeepDooDoo]

10%

I settled my BofA account for 10% of the balance, roughly 5k on a 50k balance. Yes, they will tell you they can't do anything until you mail them a payment, and they never settle for less than, I was told 20%, but I stayed firm and told them I needed something in writing, I have 5k that I could borrow from a relative, and if they want it, they had better decide soon because I would go ahead and make a deal with someone else. They did cooperate in the end and they got their money and I have the letter. They did say they will have to 1099 me for the balance.

Their starting number was pretty good, about 70%, but it may have something to do with how much I owed other creditors as well. I owe a ton of money and nobody was getting paid and I think they saw that and moved fast. I'm getting ready to file, wish I had never even settled for the 5k, but at that time, thought I could make deals with all of them. Turns out they all wanted their money at the same time, two have filed suit, and I just can't come up with that kind of money all at once.

Collection-wise, they were the most considerate and understanding collectors that I've spoken with, never once were rude or nasty, always had civil conversations.

[albacore44]

That next office their speaking of is probably Hanna and Associates

[GotNoMoney]

Once you are past charge off you can get them down to around 20%, BOA is one of the easiest to deal with and the ones that for me where willing to give up the most. They were willing to write of 80% of what I owed and that was without even having to try to negotiate. If I wasn't stuck with a ton of other debt I would taken the offer or even tried to get them lower, they seemed like they were very willing to negotiate, unlike Amex or Cap1.

[carol7lynn]

Once you are past charge off you can get them down to around 20%, BOA is one of the easiest to deal with and the ones that for me where willing to give up the most. They were willing to write of 80% of what I owed and that was without even having to try to negotiate. If I wasn't stuck with a ton of other debt I would taken the offer or even tried to get them lower, they seemed like they were very willing to negotiate, unlike Amex or Cap1.

Good to know! I am 4 months past due and they rarely call me and when they do they are always nice.

C7L

[logansdad]

I'm settling this Tuesday for 0%

[frogger]

I'm settling this Tuesday for 0%

Same rate I'm going to settle for too.........

[nickifan]

I settled my BofA account for 10% of the balance, roughly 5k on a 50k balance. They did cooperate in the end and they got their money and I have the letter. They did say they will have to 1099 me for the balance.

I'm getting ready to file, wish I had never even settled for the 5k, but at that time, thought I could make deals with all of them. Collection-wise, they were the most considerate and understanding collectors that I've spoken with, never once were rude or nasty, always had civil conversations.

Me confused. How long ago was this payoff? Isn't that "preferential" in regard to the other CCs you owe if you're about to file??

And about the 1099...do you mean the $45K you didn't pay is going to show up as taxable INCOME????

[HHM]

With BofA, it really depends on the amount. The people getting less than 25% tend to have a very large balance. (i.e. 50K); 25% is pretty good and about average for BofA. Realize, for banks, even going to 25% is nearly unheard of, (Chase, Citigroup etc, generally won't settle for anything near that).
However, if you don't have the money, you don't have the money, it doesn't matter. Also, will settling with BofA solve your financial challenges, if no, there is really no point in settling.

and about the 1099...do you mean the $45K you didn't pay is going to show up as taxable INCOME????

Yes.

[carol7lynn]

Same rate I'm going to settle for too.........

LOL Sounds good to me!

C7L

[Lajazz947]

I owed $77,000 and I got then to 11% without even asking.

Of course at that point I was in BK so it did not matter anyway.

[carol7lynn]

LOL

C7L

[lt2828]

Also, will settling with BofA solve your financial challenges, if no, there is really no point in settling.

Yes it does. BoA is the only creditor who extended me such a large line. All other creditors were low. If I am able to settle w/ BoA I will only owe about $10k which I can easily manage.

I don't have 25%, but I am willing to pay up to 15% even with the 1099 tax income at the end of the year. I think I'm going to continue to deal with them until they settle for 15%. The thing I would like to know is how much Collection Agencies pay for this debt to BoA. In other words, for BoA I can either pay them 15% or 0% (if I BK), but the question is... How much is a CA willing to pay BoA for my debt? 10%? If so, from a business point of view, then BoA should be willing to accept my 15%, but I have no idea how the transfer of CA to BoA goes, or if they even purchase the debt out right or it is assigned. Does anyone know the specifics?

I'll keep you all updated.

[Cheeseater]

I offered Boa 15% at 150 days and was flatly told " there is no such thing as as a 15% settlement ". 2 days before charge off they offered to take 11% on about 74k. All along until then they insisted on 25%, from what I gather a lot depends on how old the debt is (lots of recent charges, big ticket items, balance transfers). Good luck to you.