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Strange Situation with BofA Charge Off

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Strange Situation with BofA Charge Off

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. Smiley Sad 

 

Any insight or advice would be great! Thank so much!

Rebuilding Since 8/15/2018
Starting scores: EQ: 576; TU: 627; EX: 599
9/11/19: EQ: 615; TU: 640; EX: 647
7 REPLIES 7
Community Leader
Mega Contributor

Re: Strange Situation with BofA Charge Off

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. 

EX 754 EQ 774 TU 752


Message 2 of 8
Senior Contributor

Re: Strange Situation with BofA Charge Off

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.





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 3 of 8
Established Member

Re: Strange Situation with BofA Charge Off

It's admirable that you took the initiative to pay off the charge-off with BoA. Good on you! I, too, hope this is corrected on your reports so that you can move forward with your journey. If not, you could always reach out to the three bureaus to reflect the status to help your utilization. If for some reason, this isn't done timely and hurts you, then you have recourse with the consumer financial protection bureau (CFPB). I've found this governmental agency very useful (and of course, it's free) in giving me a platform to dispute incorrect or dated credit reporting. And yes, I have complained against the three bureaus for outdated info that remained on my reports after many attempts to remedy the inaccuracies with the three reporting bureaus (either I received no response, or they did not make the change). So, the CFPB was more of a last resort, but boy, the credit bureaus were very attentive and willing to work with me once I filed a formal complaint. They seem to be scared of the CFPB -- same goes with the banking institutions. No one wants a fine!
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Message 4 of 8
Moderator

Re: Strange Situation with BofA Charge Off

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.
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Message 5 of 8
Established Member

Re: Strange Situation with BofA Charge Off


@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 :/ 

Rebuilding Since 8/15/2018
Starting scores: EQ: 576; TU: 627; EX: 599
9/11/19: EQ: 615; TU: 640; EX: 647
Message 6 of 8
Established Member

Re: Strange Situation with BofA Charge Off

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 Smiley Happy 

 

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?

Rebuilding Since 8/15/2018
Starting scores: EQ: 576; TU: 627; EX: 599
9/11/19: EQ: 615; TU: 640; EX: 647
Message 7 of 8
Community Leader
Mega Contributor

Re: Strange Situation with BofA Charge Off


@freckle_face 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 Smiley Happy 

 

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 

EX 754 EQ 774 TU 752


Message 8 of 8
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