Universal Default is destroying out credit

donnaandres · Joined: 29 Oct 2009 Posts: 1 1.51 Dollars($)

I have an investor who owns 13 rental properties with 100% occupancy and 2 personal homes. Plenty of assets but no liquidity. He has impecable credit with the ONE exception by no fault of his own. He has had a 740-780 credit score for the last 30 years. Bank of America has destroyed his credit with one sweep. Universal default is killing him and his credit. He can't even get check protection. Here is the screnario of Bank of America. He transferred a balance of $6000.00 to receive zero percent interest for repairs he made to a rental property. One year later he owed $20,000????? He made a settlement amount of $4000.00 and paid as agreed. They sent him a settlement letter. One year later they are sending it to a collection company for the total amount of $20,000. We have tried since February to contact anyone someone at Bank of America to stand by their settlement letter and every person, every agency including BBB, Credit Reporting agency and the collection agency has advised him to go to the press. We just want to speak to someone who knows how to handle this breach of contact and have his credit restored to impecable. All these lenders know he stands to loose everything with universal default and no working capital. Now since they have reduced his other credit lines it makes his credit worse because they lowered the credit and it seems like he went over the limit or maxed them out when really they did it by reducting the credit lines or closing the accounts because of Bank of America. Where can he go? What can he do? Who should he call?

smithsussane · Posted: Thu Oct 29, 2009 7:53 pm Post subject:

Hi donnaandres!

Welcome to forums!

The investor should contact an attorney and take his opinion in this case. If a settlement was already done with Bank of America, they cannot send it to the collections again. I hope the investor has all the documents relating to the settlement agreement. I guess, the attorney may help him file a case against the lender.

Feel free to ask if you've further queries.

Sussane

Guest

Thank you for the response. I guess additional information would be that the account is in 2 names. Investor is the first party the additional authorized party on the credit card settled the debt to have it removed from their credit to purchase a home. The second party has no reporting or debt and the settlement shows paid as agreed. It is the investor who is the primary that they are trying to collect the total amount and shows him in default with BOA and the collection company.

Posted: Thu Oct 29, 2009 11:33 pm Post subject:

As the investor is the primary borower, it's natural that the lender would come after him. Your best bet would be consult an attorney as Sussane has suggested.

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