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Bank of America Charged Off My Account Even Though I Made a Payment. – Mac

“Dear Steve,

Erroneous Chargeoff of Bank of America Credit Card $22,000.00 Bank of America gave me a deadline of 5PM 30 November to make a payment on my credit card or it would be charged off.

I made the payment of $600.00 using Bank of America’s Online Billpay service on November 29, 2012.

Because of an error in their system, the payment did not post until 2 Dec, 2012 and the account charged off. I used the Billpay service to make the payment because I knew there would be an electronic record of my 29 November payment.

When I contacted Bank of America Billpay, they contacted Bank of America Credit Card and told them that under the terms of the Billpay contract , the payment should be backdated to November 29 and the chargeoff should be reversed.

The credit card department has refused to honor the November 29 payment date because there appears to be a lot of paperwork and effort involved in reversing a chargeoff. Bank of America Billpay has provided me with several documents stating that the payment should have been backdated to November 29. They have gone back and forth internally with this issue for three months.

Is it an unfair and illegal collection practice for a credit card company (Bank of America/FIA Card Services) to solicit a payment by a certain date, not honor the date the payment was received (even from their own internal billpay department) and chargeoff the account using the erroneous payment date? I believe that they have refused to use the appropriate payment date because it would prove that they charged off the account erroneously due to an internal error in their system that prevented the payment from backdating correctly.

I am strongly considering hiring an attorney to resolve this, but want to understand if they are within their rights to refuse backdating the payment and reversing the chargeoff.



Dear Mac,

It seems like the bigger issue is going to be getting Bank of America to recall the debt from being sold to a bad debt buyer.

The real question comes down to what the Bank of America cardholder agreement you signed says about payment receipt.

According to an online cardholder agreement with Bank of America here is what they say:

We credit payments as of the date received, if the payment is: (1) received by 5 p.m. local time at the address shown on the remittance slip on the front of your monthly statement; (2) paid with a check drawn in U.S. dollars on a U.S. financial institution or a U.S. dollar money order; and (3) sent in the return envelope with only the bottom portion of your statement accompanying it. Payments received after 5 p.m. local time at the remittance address on any day including the Payment Due Date, but that otherwise meet the above requirements, will be credited as of the next day. Credit for any other payments may be delayed up to five days. – Source

The Bank of America website says:

“If you pay your Bank of America credit card account from a Bank of America checking or savings account, any funds transferred as a payment to the credit card account before 11:59 p.m. ET, including weekends and holidays, will be credited with the date the payment is made. However, updates to account balances and funds availability may take up to two bank business days.” – Source

Have you asked Bank of America Billpay for a written statement when they sent your payment?

If you want to try to clear this up you might want to talk to a local attorney that is licensed in your state and specializes in banking issues.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

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.

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