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Bank of America Post Charge Off Settlement


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Hitting a wall with this last account to qualify for mortgage. In short, BofA (FIA Card) charged off credit card account in 2009, sent 1099-C but won't remove balance ($8,500) and reporting a past due ($1,600). Sent validations to BofA and disputes to CRA's....with no luck on removing or showing $0 balance/$0 past due. The only validation I've received is a 2009 statement showing charge off and $0 balance. Sent final dispute with this statement to Equifax and Experian but don't expect them to remove or $0 balance. I've spoken with attorneys (Colorado) and evidently case law is gray for charge off's (even with 1099) and  allows creditors to report balance on credit reports. Settlement negotiations with BofA have been difficult and after multiple lengthy discussions they stated a "settlement" (later withdrawn) will not $0 balance and they will continue to report difference between balance and settlemnt amounts (essentially I would just be paying down balance and reset the SOL/re-age account). Their subsequent written offer to settle was equally vague and did not clearly state with account would be completely satisfied.


Question - It looks like I will have to settle account. Has anyone had success with legally binding written settlement agreement with BofA. Has anyone used attorney to settle accounts similar to this and were enforceable to CRA's? Any other suggestions other than to settle in full? Legally would they be obligated to remove the past due of $1,600 if I only paid this amount (this is the issue with my lender)?

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