In 2012, Bank of America reached a $16.65 billion settlement with the United States Department of Justice over its mortgage practices. If you had a home equity line of credit with Bank of America, you may have received a letter from Bank of America stating that the balance on your account had been forgiven as part of that settlement. In addition to forgiving the debt, Bank of America also agreed to report the accounts to the three major credit reporting agencies (Equifax, Experian and Trans Union) as paid and closed.
Instead of reporting these accounts as “paid and closed,” in many instances Bank of American has reported them as having been charged off or written off. That is not accurate! There is a huge difference on your credit report between an account that is reported as “paid and closed” which is good for your credit report and “charge off” which is a kiss of death!
Bank of America agreed to report the forgiven account as paid and closed, not charged off and paid or written off and paid. It has a duty to fulfill its promise. To make matters worse, this inaccuracy weighs down a consumers’ credit ratings, because a charged off account reduces one’s credit rating while a paid and closed account normally improves one’s credit rating.
Check your credit. We have sued Bank of America for incorrect credit reporting of these forgiven HELOC loans.
If you have received one of these letters from Bank of America forgiving the balance on your account, check your credit report! If you find that your Bank of America account is not being reported as paid and closed, or any other inaccuracies, contact us at Credit Repair Lawyers of America immediately. We specialize in free credit repair. Best of all, we provide this credit repair help free of charge to you, since we recover our fees from Bank of America under the FCRA.
Now is the time to check your credit reports, and fix this inaccuracy. Don’t wait until you apply for credit, only to learn that Bank of America’s failure to make good on its promise is weighing you down. Call or email Attorney Gary Nitzkin at (888) 293-2882 for a free, no obligation consultation. The call is free and the advice is priceless.