Bank of America Complaint - BofA will close your credit cards if you apply for Obama HAMP modification!!!
DALLAS, TEXAS -- Because of reduced income from my former home (now a rental property because it didn't sell when my job transferred out-of-state), I proactively sought a mortgage modification on my primary residence. I am current on my mortgage, but knew I needed lower monthly mortgage payments. My credit score was ~780. I started a trial mod, in which you make reduced payments for 3 months. During that time your payments are held in a separate account, and the mortgage company reports you as 30, 60, and 90 days late on your regular mortgage payment. Even though you make the trial payments as instructed, the missing "normal" payment is considered "derogatory".
Here's where Bank of America gets involved: I have 3 credit cards with them, due to bank mergers. B of A conducted a "review" of all my accounts because the trial mod caused a derogatory item on my credit report. B of A closed 1 card account, and reduced my available credit on the other 2 cards to a few dollars over the outstanding balance.
In 15 minutes BofA damaged my FICO score in 3 ways:
--I went from using approximately 29% of my available BofA credit, to 99%.
--My total available credit (on my credit report) was reduced to 75% of what it used to be.
--The account they closed was a long-standing account, so the average "age" of my credit became lower.
All these things damage my FICO in a big way.
My credit score will now be in the "fair" category, so I won't be able to get new credit or a reasonable car loan. I can't repair my credit until I reduce my indebtedness by over half... But B of A told me they will continue to reduce my available credit as I reduce my balance, preventing me from remedying the situation. This will further reduce my FICO, and when they eventually close the other 2 cards, it will be a MASSIVE FICO drop.
My payment history is perfect with B of A, and I ALWAYS pay more than the minimum payment. 2 of the 3 cards I always paid in full. This is how Bank of America "rewards" its excellent customers. I can't close the 2 remaining accounts and get a different credit card without further damaging my credit.
And now this credit score is preventing me from changing the terms on my rental property's mortgage (even though I am current on it too, just like I am current on all my debt). My new low FICO score caused by Bank of America's impulse reaction to the trial mod program definitely paints a different picture of me... EVEN THOUGH I STILL HAVE NEVER PAID LATE NOR BEEN A NON-PAYER FOR 20 years.
If you speak with BofA credit department, DO NOT REVEAL if you are in process of getting a mortgage modified. They will automatically close all your zero-balance cards and remove your ability to use your cards that have balances.
DO NOT REVEAL THAT YOU ARE IN THE OBAMA Home Affordable PROGRAM!!!!!!
Bank of America will cut you!!!
More Reviews on Bank of America: