My response to a collection letter. Any suggestions before I print & mail?

[njlib]

To whom it may concern:

I am in receipt of your correspondence dated April 4, 2010. Let me provide you with some background regarding my outstanding balance with Bank of America.

I have been unemployed since February 16, 2009. Upon losing my job, I withdrew my 401k money and was able to make my payments, well over the minimum which can be verified by checking BOA's records, for the first 5 months or so of my unemployment. While I was collecting the maximum amount allowable under NJ state law, it is still less than half of what I made when I was working. I don't know if you've been keeping up with current events, but the job market is dismal and our elected representatives decided a two week vacation took precedence over extending unemployment benefits to those who've completed their current tier. My tier 2 emergency benefits were exhausted April 5, 2010. Even if they approve me for an extension into tier 3, I'll still be trying to live on about 40% of what I was earning while employed.

After paying the mortgage and car payment, I'm left with about $200/month for utilities, food, car insurance, gas, etc. My house is in such a state of disrepair, it probably isn't even worth my outstanding debt to BOA. I don't have a money tree in my yard, I don't have a magic wand to magically make a mountain of money appear on my kitchen table, and I'm too old to turn to a life of crime or the world's oldest profession. Now, what do you suggest I do?

BOA can reduce my outstanding balance to 40% of the current amount, which is probably closer to what is actually owed if the ridiculously high interest/penalty fees are deducted, and we can set up a payment plan. BOA can calculate what was my personal percentage of the TARP funds they received and apply that towards the outstanding balance, which I'm sure would be more than enough to cover it, and then refund me the difference. My personal preference would be for BOA to find me a job that pays a decent living wage, maybe CEO so I could earn millions in salary and bonuses.

I am honestly at my wit's end and don't know what BOA and every other loan sharking, blood sucking financial institution expect people to do.

I am sending a copy of this to BOA and look forward to something other than a form letter in response.

Thank you.


So, is this OK to send?

[Ian David]

1. Don't even HINT that you're thinking of walking away from the mortgage or defaulting.

If you're going to walk away or default, then get legal advice and just do it.

That's the sort of thing you want to do o YOUR terms and YOUR timetable- you don't want them to foreclose or harass you on THEIR schedule.

Also, I wouldn't tell them your home is in disrepair. They might accuse you of intentionally damaging "their" asset.

Otherwise, this looks good to me (although I am not a lawyer, nor do I play one on TV).

[elleng]

2. Its great, and I'd send it WAY UP at boa, not just collector.

As its so good and affective, I'd delete loan sharking/blood sucking stuff. You've gone SO FAR with civility, I'd suggest keeping that tone.

Best of luck to you, jersey.

[joeybee12]

3. If this is your first letter, I wouldn't put the blood-sucking part in...

...play nice and see what kind of response you get, then ratchet up the rhetoric if need be. Good luck.

[CountAllVotes]

4. I'd make it short and sweet

and remember, no one is going to spend much time reading this.

I agree with the above poster, don't even allude to the idea that you might be foreclosing and that the house is in a state of disrepair.

Just let them know you can't pay and that you have no more unemployment left as things now stand.

As I said, short and sweet. If they have any questions, advise them to contact you. Period.

:dem:

[HopeHoops]

5. I'd change the "blood sucking financial institution" part to...

..."fucking asswipe blood sucking dildo-headed financial mafia". But that's just me.

[grasswire]

6. after you fix it...

...I would also send it to your local news reporters and your U.S. Representative. At the bottom of the letter, indicate that you are copying it to those people.

Leverage, baby, leverage.

[walldude]

7. From experience...

Pull out the "insults", might make you feel better but does no good. I also agree with the poster above who said to remove the part about the house being in disrepair, you don't want to give them any ammunition...

[njlib]

8. Sorry, I should've clarified...

This is regarding a credit card debt of $5,900 and has nothing to do with my mortgage, which gets paid every month with an automatic deduction from my checking account. My mortgage payment history is spotless.

I mentioned it just in case a lien would be their next step...and yes, good points about the blood-sucking reference!

Thanks!

[Greyhound]

9. If you send this you will likely regret it.

Nothing you wrote compels any action on their part and gives them evidence to use against you in what appears to be an inevitable court case.

Please talk to an attorney before taking any actions. The laws are stacked heavily against you and this kind of written evidence only serves them.

[pinboy3niner]

10. One thought . . .

You might close with a statement to the effect that you are very interested in working with them to achieve a resolution that is mutually satisfactory.

[asjr]

11. Leave that letter as it is. That is the best

letter I have seen in ages. Absolutely made my heart soar!!!

[SOS]

12. Check this out

Chapter 13 stops foreclosure dead in it's tracks.
If you file before they complete, you're in a much better position against the parasites.

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

On edit: Just saw post #8, re credit card.

We were successful in negotiating a lower rate on our cc debt.
That might be worth a try.

[SCantiGOP]

26. I was going to suggest the same thing

My wife works for Legal Aid in SC. Based on your income and assets and the Federal Poverty Guidelines you can be represented for free in debt or bankruptcy cases. Here is a link to the Legal Aid services in all of the states: http://www.lawhelp.org Best of luck.

[SCantiGOP]

30. update re Legal Aid

Checked with my wife; their threshold is 125% of federal poverty level (link here: http://liheap.ncat.org/profiles/povertytables/FY2010/popstate.htm )and they do not take into account a primary residence and one car. They cannot charge for their services, and if they can't take your case they will refer you to an attorney who may take your case for no or reduced fee.

[njlib]

33. Thank you for this!!

I'm going to check it out now! Thanks so much!

[Bluebear]

13. Change "My house is in such a state of disrepair" to "My house is not worth what I owe on it"

so they don't claim that you wrecked "their" house.

[CountAllVotes]

15. I'd leave the house out altogether

it has nothing to do with the $5,900. credit card debt which is the issue.

:kick:

[Bluebear]

18. Good call.

[Cronus Protagonist]

14. Print it and burn it

From someone who used to work at BofA, so take it for what it's worth. There's nothing in there that will produce any results, but if it makes you feel better, print it and hold a burning ceremony. There's no sense in putting something in writing that could come back and bite your ass later. If you eventually are able to get a loan modification, this letter would not be an asset. For your own good, don't send it to anyone at BofA.

[Bluebear]

20. **probably the best advice the OP received here**

[Ignis]

34. Sad but true.

This letter is unlikely to ever land on the desk of someone with the power to make the changes you need.

[cbdo2007]

38. This is excellent advice - you shouldn't be putting any of this in writing.

And if they call tell them you'll only deal with them through the mail, but just keep putting it off if you can't make the payments.

You are just a number to them and they don't care anything about your personal situation.

[LoZoccolo]

16. Law #4: Always say less than necessary.

Don't do it,

[CountAllVotes]

19. I tend to agree with you

don't send this letter. It may come back to haunt the OP.

What I do with things like this is put them away somewhere for awhile (like a week if you can) and read it again and see what you think after one week or so.

I AGREE WITH EVERY WORD YOU HAVE WRITTEN (ref: POST #14) (I personally cannot stand BofA :puke: ). :(

[leftofcool]

17. NO! NO! NO!

They will just toss this. If they are contacting you via phone, send the standard cease and desist letter to them. You can Google and find it on the net. You can not stop them from contacting you by mail.

[NV Whino]

21. Regarding credit card debt:

Offer to work with them to make affordable payments. When they refuse, as they will, file for bankruptcy. I speak from experience.

[tonysam]

23. Use a lawyer if you do it. n/t

[tonysam]

22. Hire a lawyer for a couple of hundred bucks if you are being hounded.

The lawyer can write a letter to your creditor. That'll hold them at bay for at least awhile. It worked for me both times I used them.

[TexasObserver]

24. Therapeutic to write. Mistake to send.

No good can come from it, and it is in your file from here on.

[Walk away]

25. See a good lawyer. Every one I know in this situation that had good legal advise....

are doing fine. You need to stall and negotiate to come out ahead. Telling them they are crooks and Tarp is bad will not help you at all. Look into government sponsored help setting up a firewall for your mortgage as well.

I have a friend who has been out of work for a year and a half. She was in $60,000 in credit card debt and was totally underwater on her condo. She got the right advise and she is still in her home without making a full mortgage payment for 18 months and her credit is restored.

It may make you feel good to be sassy but they don't give a shit. Get real advise.

[slackmaster]

27. DO NOT SEND IT!

Tipping your hand can only put you in a worse position.

[njlib]

28. Thank you, everyone!

DU is always the place to go when in need of guidance!

I'm still waiting to hear back about orientation for the job offer I got on Tuesday. I'm going to call them in 30 minutes or so, just to make sure they haven't changed their minds!

Once I'm getting a paycheck again, I'll gladly make payments. This was a balance transfer through AAA... I've never charged a single purchase on this card... and if I had known BOA was the card issuer, I would've never gone through with it. I made the payments for two years and with the chunks I paid at the beginning of my unemployment, when I had that 401k money to use, it was down to less than half of the $8K it was when I started. What ticks me off is that the minimum payment was still close to $300/month, no matter how much was still owed and since last August it's up to $5900 with interest & fees! I'll bet between the 2 years of monthly payments and the chunks I paid before I had to stop, if I didn't already repay $8K, I'm damn close to it!!

I'm going to attempt to call them, but as some of you suggested, it DID make me feel better to write it out!

[Speck Tater]

29. I seriously doubt that they will be amused. Or moved. They just want their money.

So while writing it may have made you feel better, mailing it is pointless, as it will have no effect whatsoever. Save yourself the cost of postage and just toss it.

[Another Bill C.]

31. My experience

In dealing with a relative's dealings with credit card collections, I've found the following:

The collections agent for credit card companies and large department stores is likely to be a legal firm which deals only in collections.
Being a legal firm, they can set up standard procedures for processing the collection all the way from the telephone harassment through court filings for asset seizure, garnishment, liens, and whatever else your state law allows.

In some cases, I've been able to obtain settlements for much less than the amounts being demanded. The chances of a good settlement have been better if the collector has no court filing fees to recover.

You can research your state's laws regarding collections. In Minnesota they can be found at https://www.revisor.mn.gov/statutes/?id=550

If your creditor is still trying to collect the balance of your account, you might be able to settle by offering a lesser amount. If it goes out to collections, you might still be able to settle for a lesser amount up to the point where the collector files for a judgment. After that, even a settlement might be quite a bit more than the original amount owed.

Personally, I don't think your letter will receive as much attention as a settlement offer might.

[njlib]

35. Thank you

I received a PM regarding another DUer's experience with BOA collections.

Once I calm down a little, I'll probably call them and see what they say.

[hunter]

32. The most I ever sent to a collection agent...

... was a copy of their collection letter and a few of my own words (just the facts, ma'am) written on top with a fine tipped blue or red sharpie marker. All they know about me is that I got their letter, made a copy, and won't be messed with.

They are worse than a corrupt cop with a bad attitude -- they can and will use anything you say against you. Sometimes they'll make stuff up. That's why you copy their letters and record their phone calls. It stops any illegal harassment they might do.

If you can't pay, that's really all they need to know.

[njlib]

36. I actually do have a little recorder that plugs into the phone

I'll have to find it. Thanks!

[Crystal Clarity]

37. I'm so sorry

that you are going through such a rough time :hug:

I don't know how much good it will do to send the letter though... for reasons others have already stated.

I hope you'll be seeing better days soon.