New collection tactic?

[CCsSuck]

Some of you may recall that I stopped paying my BofA card. They've been called pretty regularly, usually up to 4x per day, but I only answered once, and couldn't understand the guy and hung up. Anyway, today I got a letter from them which basically said they were modifying my agreement with them and instituting a new annual fee (it used to be free). I think they said it was around 50-60 dollars/year. It said I could reject the changes, but I would have to call them at the number provided. I always thought to reject changes to your credit agreement it had to be done in writing (and they didn't provide an address to do so, other than the return address on the outside of the envelope). Since I'm not paying them, I really could care less about the annual fee, but I just felt it was fishy since writing them wasn't an option. Is this just an attempt to A) kick me when I'm down, and more importantly B) another way to try to get me on the phone with them? Anyone have any thoughts?

[BrokeinMD]

Hi CC - If it were me, I would believe it was Option B. Have you filed yet?

[CCsSuck]

well the weird thing is it didn't have the usual "this is an attempt to collect a debt" thing on there anywhere, so maybe one hand isn't talking to the other, or they're just being extra sneaky about it and hoping I'll call so they can say "oh by the way..." but, no, if I file, it will be about a year from now

[BrokeinMD]

If you've stopped paying them, then they're beginning to fish and find out why, and this sounds like the beginning of their realization that you're not giving them any money and they're tacking on the fee because you're now "high risk" to them.

[ryan]

I like BrokeinMD's idea.

I think they probably have a strategy they are now following to elicit whether you are a 'dead' for purposes of getting more payments or are still concerned about things like this, which would imply you plan to resume payments. I don;t know.

I defaulted with a BOA credit card 16 months ago. They have proven to be the least aggressive of all my creditors. Come to think of it, I probably have not heard a peep from them in at LEAST 6 months.

I have no recollection of ever getting a letter like you got, so maybe they have developed a new early collection approach.
Of course, I did speak with them a couple of times at length in the very beginning of non-payment, so it may be because you haven't really talked to them.

[BrokeinMD]

I had an LOC with them, and they were the most passive out of all the Big Boys I had accounts with. They sent me a couple of emails, and as time went by I received a couple of letters from them that they wanted all their money, not adding any fee. I agree, Ryan, this is something new for them. Maybe they are tacking on this fee to accounts where they think they might get something, since CC hasn't filed BK yet.

[Bell30656]

It has nothing to do with your being behind. Bank of America and BB&T recently changed many (most) of their accounts from "free" to "with fee". Since your account was open you received it automatically. A friend of mine got this same notice on his BoA card. He is 100% current and pays off his balance in full each month. He called and the only option for him was to close the account or accept the new terms.

Apparently, BoA is doing this state by state on the rollout of the fees.

[tobee43]

i agree with bell on this one....so many of the cc companies are changing in light of the "new" laws...(which i THOUGHT were suppose to help protect us...so much for that)....anyway...i think the letter is "real" and just another "fee" the bank is attempting to tack on. i know we got a list of "new" fees...unreal....and also if you intend to list them on your bk...i wouldn't bother. i got to the point i just threw any mail from them in the trash so i didn't think about it again...i knew i was filing and they would be listed....and b of a was by far the worse!

[GoingDown]

Yes, this is the new norm. Free accounts are going away rapidly. Several of my relatives who have perfect credit and good incomes just recently found out that some of their credit cards are now going to start charging an annual fee, and their banks are now going to start charging a monthly maintenance fee.

[keepsmiling]

Haven't heard one word from BoA and I owe them over 20K.
Discover, OTOH, calls a dozen times a day over the $600 balance. I actually had planned to pay them off til they lowered my line to 600 lol. They leave messages about the "opportunities" they want to offer me in very aggravated voices.

[BrokeinMD]

I have BB&T checking and I haven't been noticed about any maintenance fee....yet. I've had every card but Discover. Aren't they lucky! LOL

[CCsSuck]

Thanks guy, I appreciate the thoughts!

[treehugger1]

I would guess it is an attempt to "speak with you." I had two BoA accounts that went into default about 40 months ago. BoA (and FIA from a MBNA account) sold these accounts about 1-2 months after charge-off. When I called BoA several months ago to confirm their interest in these accounts, they told me the accounts were "paid" with zero balance. The JDB's turned out to be CACH and Calvery. These guys failed to validate. I assume they had very little info on the account, as they probably purchased the account as part of a very large debt portfolio in 2008. As a result, I don't think they have any OC info. BoA probably washed their hands of this debt.

Currently, I believe that the debt portfolio business is nearly dead in the water. Or, the cost of selling the debt (a penny or three on the dollar) makes it more profitable to attempt collections inhouse.

I say this because it currently seems to be the trend that BoA is likely to hold onto debt and refer to an attorney. I can only guess that either they cannot sell the debt to JDB's or the cost of outside CA's does not pencil out. They may attempt outside CA's on initial default, but eventually pull accounts back inhouse and attempt to collect.

Hence, BoA wants all the info you are willing to give them. Perhaps 15% - 25% is very profitable. LOL.

[flyinbroke]

I have two BoAs and both are closed. They are quite passive aggressive and I suspect the new fees may be a sneaky way to re-age the account.

Here is my case: THey hired a CA for both accounts (being cheap, I guess) and I sued the CA for the nasty phone call I just happened to record. They settled with my lawyer and kicked the accounts back.

They sent one account to another CA (actually two, I got letters from NCO and a new affiliate of NCO.) Sent validation letter. NCO sent a letter saying they were closing their file. Subsidiary sent a letter offering to settle by knocking one percent off (this is a violation since they never validated.)

The other account had no validation at all with the first collector. I heard nothing from them until they hired a local attorney in September. I sent a validation letter. They did not validate in 30 days (a no-no in my state.) They also sent a statement from OC with a zero balance. My CR does not indicate it was sold. I have heard nothing since December (these guys sue rapidly too....on another OC they sent first dunning in June and filed suit in August.)

I filed away that zero balance statement copy for future use. I have heard nothing from the other BoA collector, either. I elected arbitration with both, by the way. I have discovered that since their kangaroo forum was disbanded, they hate arbitration because they hate a level playing field.