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Bank of America Debt Settlement Statement of Compliance

It appears that the Bank of America debt settlement statement companies must sign may pose a problem to certain legal model debt settlement companies.

The first page says that Bank of America will only work with law firms that have provided in-person and direct face-to-face meetings. That’s just not happening. And in many case it’s with a notary or other runner and not a law firm employee.

Bank of America Debt Settlement Statement of Compliance

Much of the rest of the form is pages of the telemarketing sales rules and how Bank of America expects all companies to comply with them.

On the last page is an interesting statement about charge-offs.

“That any settlement agreement entered greater than 90 days in duration with Bank of America may result in immediate charge off of the account.”

Bank of America Debt Settlement Statement of Compliance

Bank of America Debt Settlement Statement of Compliance
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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Errick

    I’m not an expert, but if a “legal model” or “debt settlement law firm” or whatever complies with the TSR and does not claim any kind of attorney exemption, there seems to be no ethical violation. And I doubt an attorney who breaks this contract would be subject to disbarment unless there was some sort of shenanigans with the client’s funds.

    What I think this really is, is a way for BoA to walk away from most of the settlements that they make with debt settlement companies. The settlement companies in turn can point the finger at BoA. Once again the customer gets the shaft, because he or she is the only one bargaining in good faith.

  • Steve Rhode

    With all the BoA settlement out there it would be hard for a company to say they were not aware of how the performance and settlement claims need to be presented to consumer. The full document lays that all out.

    But in classic fashion, the letter that says it is three pages, is in fact four. Page 3 of 3 and then here’s another one. LOL

  • LoppyHill

    they rolled it out to us the week of 10/27. You have to submit with every settlement offer, not just a one time sheet. Maybe that has changed since, but we still have to sign. Put’s the law firm in a bind and attempts to protect bofa by putting all measures in place to ensure compliance. I mean, how else can you assure as a bank that a provider is compliant.

  • ComplianceSlave

    Well, if most of the “legal models” are signing off on them, ethically it could be grounds for a disbarment.

  • Mike Reilly

    These have been around for a while, months in fact.

  • Mike Reilly

    These have been around for a while, months in fact.

    • http://www.ftc.gov ComplianceSlave

      Well, if most of the “legal models” are signing off on them, ethically it could be grounds for a disbarment.

      • Errick

        I’m not an expert, but if a “legal model” or “debt settlement law firm” or whatever complies with the TSR and does not claim any kind of attorney exemption, there seems to be no ethical violation. And I doubt an attorney who breaks this contract would be subject to disbarment unless there was some sort of shenanigans with the client’s funds.

        What I think this really is, is a way for BoA to walk away from most of the settlements that they make with debt settlement companies. The settlement companies in turn can point the finger at BoA. Once again the customer gets the shaft, because he or she is the only one bargaining in good faith.

    • LoppyHill

      they rolled it out to us the week of 10/27. You have to submit with every settlement offer, not just a one time sheet. Maybe that has changed since, but we still have to sign. Put’s the law firm in a bind and attempts to protect bofa by putting all measures in place to ensure compliance. I mean, how else can you assure as a bank that a provider is compliant.

      • http://GetOutOfDebt.org Steve Rhode

        With all the BoA settlement out there it would be hard for a company to say they were not aware of how the performance and settlement claims need to be presented to consumer. The full document lays that all out.

        But in classic fashion, the letter that says it is three pages, is in fact four. Page 3 of 3 and then here’s another one. LOL

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