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I am wondering if anyone else has had the same experience with Bank of America that I have. Bear with me, this post is a little long but I didn't want to leave out any details.
Background: BofA Cash Rewards Card
Opened: 02/2014
Charged Off: 03/2016
DOFD: 07/2015
Balance: $901
CL: $700
UTL: 129%
BofA was reporting to CRAs every month with July 2019 being last time reported.
Here's where it gets weird:
I still have my checking/savings accounts with BofA and I use online banking to view my accounts, etc and in August (last month) the charged off CC showed up under my "Accounts" homepage on my online banking.
**Now this had happened one other time a couple years ago, but it just showed up for a couple weeks, and when I clicked on the CC acount details it would tell me to call the Debt Collector that was assigned to my account. I did nothing, and it went away.**
But this time, when I clicked on the account details, it gave me the option to make a payment on the CC balance ($901) and I could directly transfer from either of my BofA bank accounts. I didn't do anything immediately, but a few days later, it was still giving me the option to make a payment so I made the following:
8/21: first $500 payment
8/22: $101.94 payment
8/27: $200 payment
9/4: $80 payment
9/5: $20 payment
So by 9/5 I had paid off the entire charged off debt and on my Bank of America online banking it showed the closed CC with a $0 balance.
But then on 9/6 the CC account disappeared from my online banking and it went back to just showing my checking & savings accts.
I know it's only been a week since the balance was paid to $0 but nothing has been reported of updated to any of the CRAs yet. The account still says last updated 07/2019 with all 3 CRAs.
Has anyone else had this happen to them? Or seen something similiar?
I know that BofA ususally NEVER lets you pay a charge off directly with them, and only the DC assigned to your debt. So it's strange that I was able to transfer payments directly through BofAs online, right?
Since there was no settlement agreement is there a chance that maybe they will remove the tradeline from my CR completely once they update it? Or will it just report PIF?
If they don't update anything in Sept should I dispute with the CRAs?
This is literally my only baddie and it has been dragging my CS for so long.
Any insight or advice would be great! Thank so much!
I dont think they will remove the original TL, that really does not happen with them
As far as updating to show $0.00 balance, it may take up to two reporting cycles, so dont dispute anything till November (give them at least 60 days), and even then you should reach out to BoA first before disputing with CRA . That should be the last resort, because a lot of times disputes go sideways 🤷♀️
It is a rather unusual way to collect on a CO, but congrats to you on paying your last one!
I hope they report the payment for you soon.
Also, dont be surprised if it drops your score a bit, any update to negative account has a potential to, but your score will start recovering after that final update because there wont be any more in the future
That would have been impossible had you not paid.
Give it time to update on the CRA's. It should list as 0 balance and the util that was affecting you will help you now. You should see a score boost when that happens. I wouldnt stir the pot and dispute anything. Print out what you can like when it was paid for safe keeping if it doesnt update. Congrats. One less headache. But let the system play out. Dont push it for now.
@gdale6 wrote:
Reason you were most likely able to pay it off with them is they recalled the collection and had not yet assigned it to another collector.
I would have maybe also thought that too, but even when paying it through Bank of America, they still gave me Capital Services Management LLC information as the DC :/
Thanks for your response! The good news is that since I paid directly through my BofA checking acct, I still have all of the payment confirmations listed in my account transactions, and they are all described as "Online pymt to BkofAm CRD **** Confirmation# *******" so I'll forsure have a paper trail in case things never get updated
Do you know if when they do update it to $0, do they have to put "Paid In Full" or can they put settled or something similiar? I believe that showing something was paid in full vs. settled looks better to future lenders, correct?
@Anonymous wrote:Thanks for your response! The good news is that since I paid directly through my BofA checking acct, I still have all of the payment confirmations listed in my account transactions, and they are all described as "Online pymt to BkofAm CRD **** Confirmation# *******" so I'll forsure have a paper trail in case things never get updated
Do you know if when they do update it to $0, do they have to put "Paid In Full" or can they put settled or something similiar? I believe that showing something was paid in full vs. settled looks better to future lenders, correct?
It looks better on manual review because it shows you took care of your obligations.
Scoring wise, it would not have made a difference if you settled or not
It certainly can make future applications easier for you