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. Our partner has 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 972-643-8458
Best of all, they provide this credit repair help free of charge to you, since they recover their fees from Bank of America under the FCRA.