Bank of America Debt Settlement Phone Number: Who to Call

The Bank of America debt settlement phone number for personal credit card accounts is 855-891-3401. Small business cardholders should call 888-306-4949, and international callers can reach the bank collect at 1-302-738-5719. All three lines are staffed Monday through Friday, 9 a.m. to 5 p.m. Eastern Time.¹

Bank of America does not publish a separate “collections” or “loss mitigation” line for the public. The credit card assistance number above is the bank’s recommended entry point for accounts that are behind, in hardship, or heading toward a settlement conversation.²

Ask for the Right Department When You Call

The first person who answers usually cannot approve a settlement. General customer service representatives are trained to offer payment assistance first: reduced interest rates or waived fees tied to consistent on-time payments, debt management resources, and referrals to credit counseling.¹

If you want to pay less than the full balance, say so directly and ask for the debt settlement, loss mitigation, or hardship department.³ If the person you reach won’t or can’t help, ask for a supervisor or call back. Persistence matters, and the representative with authority to approve a lower payoff is rarely the one who picks up first.

One other thing to check before you call: if your account has already been sold to a debt buyer, Bank of America is no longer the right party. Debts sold to third parties are typically purchased for a fraction of the balance, which gives the buyer more room to negotiate than the bank itself would have.⁴ Look at your most recent letter or statement to confirm who currently owns the account.

When Bank of America Is Most Willing to Settle

Timing shapes what you can get. Bank of America is most open to settlement when the account is approaching or has just reached charge-off, roughly five months after the last payment. At that point the bank has already classified the debt as a loss and is deciding whether it can recover anything.⁵

The bank’s flexibility also depends on how collectible it considers you. A homeowner with steady income, real assets, and only a couple of missed payments looks like someone the bank could pursue in court. A person with limited assets and clear hardship looks like someone the bank should take what it can get from. Your leverage grows as the first picture shifts toward the second.⁵

What a Settlement Offer Typically Looks Like

There is no guaranteed percentage. Debt settlement industry sources estimate Bank of America may accept 30 to 40 percent of the outstanding balance, though results vary widely. In one commonly cited example, a debtor with a $10,000 balance opened at 30 percent ($3,000) and ended up agreeing to 60 percent ($6,000), payable within 90 days.⁵ On consumer forums, one person reported the bank offered 20 percent off a $1,500 charged-off balance it still owned; another reported settling an $8,300 debt in collections for roughly 45 percent.⁶

Offers change with the age of the debt, who holds it, and your specific circumstances. Before you dial, decide the maximum you can realistically pay, whether as a lump sum or over a short installment period, and start your offer well below that ceiling.

How to Handle the Call

Be direct about your financial situation and what you can afford. A few practical rules:

Get everything in writing. An oral agreement over the phone is not enforceable in the same way. Do not send money until the settlement terms are documented on paper.³
Ask for favorable credit reporting. Request that the account be reported as “settled” or “paid in full” rather than “settled for less than the full balance.”⁵
Take detailed notes. Write down the name of every person you speak with, the date, what they offered, and any reference numbers. Some states require you to notify the agent if you plan to record the call.³
If you’ve already been sued, respond to the lawsuit first. Filing an answer prevents a default judgment and actually gives you leverage to negotiate while the case is pending. You can contact the opposing attorney directly to discuss settlement after a suit has been filed.⁵

Two Things to Know Before You Dial

Calling the bank can accidentally hurt you in two ways that are easy to miss.

You May Be Restarting the Clock

Every state sets a statute of limitations on suing for unpaid credit card debt. It runs from three years in states like New York, Alabama, and North Carolina up to ten years in Kentucky.⁷ Once the deadline passes, the debt is “time-barred” and a collector cannot legally sue you for it.⁸

Here is the trap. In many states, making a partial payment or acknowledging the debt in writing restarts the clock, opening a fresh window for the creditor to sue for the full balance.⁸ If your debt is old, check where your state’s limit falls before you call to negotiate, or you may hand back legal exposure you no longer had.

Forgiven Debt Is Usually Taxable

The IRS generally treats forgiven debt as income. If the creditor cancels $600 or more, it is required to file Form 1099-C with the IRS and send you a copy, and you report the canceled amount on your return that year.⁹¹⁰

If your total liabilities exceeded the fair market value of your assets at the time of the cancellation, you were technically insolvent and can exclude some or all of the forgiven amount from income by filing IRS Form 982 with your return. Debt discharged in bankruptcy is also excluded.⁹ On a large settlement the tax bill can be meaningful, so it is worth a call to a tax professional before you sign anything.

What Settlement Will Do to Your Credit

A settled account is reported as “paid-settled,” and that notation stays on your credit report for seven years. The score impact can be significant, potentially more than 100 points depending on where your score stood before.¹¹ The lender typically closes the account after settlement, which reduces your available credit and hurts your utilization ratio. Settling multiple accounts compounds the effect. A settlement is less damaging than an unresolved charge-off but not as favorable as paying the full balance.

Separately, once you fall about 120 to 180 days behind, Bank of America writes the account off as a loss and reports the charge-off to Experian, TransUnion, and Equifax; that mark stays on your credit report for seven years from the date of the first missed payment.¹²¹³

A Note on Third-Party Debt Settlement Companies

Search results for Bank of America settlement will surface for-profit companies offering to negotiate on your behalf. Both the Federal Trade Commission and the American Bankers Association urge caution. The FTC notes it is illegal for a debt settlement company to charge fees before it has actually settled a debt, and companies that guarantee specific results (like cutting your debt in half) are showing red flags for a scam.¹⁴

These firms typically instruct you to stop paying creditors and route funds to a dedicated account instead, while late fees and interest keep accruing, your credit falls further, and lawsuit risk rises. Some issuers refuse to work with third-party settlement firms at all. Completed-settlement fees can reach 25 percent of the pre-settlement balance.¹⁵ The CFPB has said these companies generally cannot secure better terms than a consumer negotiating directly.¹⁶ If you feel overwhelmed, a nonprofit credit counseling agency such as one affiliated with the National Foundation for Credit Counseling is a lower-risk starting point.

Calling 855-891-3401 yourself costs nothing, keeps you in control of the timing, and puts you in a position to walk away from an offer you don’t like. That is usually the right first step.

1
Bank of America. Credit Cards Assistance Overview
2
Bank of America. Making Credit Card Payments
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Bankrate. How to Negotiate With Credit Card Companies
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Relief. Bank of America
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SoloSuit. Settle Debt Bank of America
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myFICO Forums. Bank of America Settlement
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InCharge Debt Solutions. What Is Statute of Limitations All 50 States
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Consumer Financial Protection Bureau. Can Debt Collectors Collect a Debt That’s Several Years Old
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IRS. Topic No. 431, Canceled Debt – Is It Taxable or Not
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H&R Block. 1099-C Cancellation of Debt
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Investopedia. How Will Debt Settlement Affect My Credit Score
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Equifax. Charge-Offs FAQ
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Debt.org. Charge-Offs
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Federal Trade Commission. How to Get Out of Debt
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American Bankers Association. The Dangers of Debt Settlement
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Consumer Financial Protection Bureau. What Is the Difference Between Credit Counseling and Debt Settlement