Is it still a blacklist if they get made whole? BOA/Citi

[Atl-Marcos]

So I reneged on some of my responsibilities in 2019 and had some CCs get charged off (no one cares about a sob story and it's irrelevant). I have since paid off or settled all my old accounts. I thought I wanted to buy a house, but now I'm holding for a while with the uncertainty of the market. 

 

I was just curious about BOA and Citi. My scores are starting to climb, and I'm probably not that far off of getting approvals for them all things considered equal. TU score of 670 which is the most recent score I've gotten. 

 

So, I burned BOA and Citi for $10kish a piece. However, they sued and got garnishments and got every penny that they were owed. What I'm curious about is are you blacklisted if they still got their pound of flesh? I owe them not a penny, nor did they lose a penny (other than perhaps attorney's fees). Just thinking about prime banks that I might have access to in 2024, and trying to make a plan. 

 

Also what about Chase, they were not PIF, but I did settle with them. I couldn't get an answer from them whether it would be treated differently if I PIF versus if I settled. 

 

Any help would be appreciated. 

[shifter]

Probably doesn't matter that they were paid. But I didn't have any issues getting Citi after a large IIB. So YMMV. Haven't tried BofA yet because they want EX and it's not clean yet. 

[MP80]

I think every bank has internal documents of their current or former clients. Amex is the hardest creditor to remove from the blacklist along with the NFCU (NFCU needs your PIF) in terms of stopping former customers who caused losses.

 

Other big banks like Bank of America, Chase, or Citibank have blacklisted consumers, barring them from applying for credit products for years. Some come back faster, some take longer, and some just can't be accepted by banks again, YMMV. It all depends on how much the bank lost.

[hdporter]

10 hours ago, Atl-Marcos said:

So, I burned BOA and Citi for $10kish a piece. However, they sued and got garnishments and got every penny that they were owed. What I'm curious about is are you blacklisted if they still got their pound of flesh? I owe them not a penny, nor did they lose a penny (other than perhaps attorney's fees). Just thinking about prime banks that I might have access to in 2024, and trying to make a plan. 

 

I expect that these banks likely value their net recoveries at about $.50 on the $1.  The administrative and legal fees spent in recovering the debt weren't inconsequential.  Furthermore, at some point these debts became "non-performing", they no longer were able to impute finance charges, increasing their investment further.

 

While I acknowledge that from your perspective you "made them whole", you don't stand in nearly the good stead of someone who, unable to keep up with payments, contacted them and arranged to voluntarily pay the debt through hardship arrangements.

 

I'm not busting on you here at all; just pointing out why these issuers might consider reengaging you as a cardholder in a light of "once bitten, twice shy". 

 

A modest Google-dive didn't surface any strong indication of your credit prospects with these issuers after repayment via collections/suit.  (Bear in mind, that someone who IIB has a modest edge; they can't do so again for some time.)

 

At minimum, you can anticipate that these issuers would look for solid payment performance with another major issuer prior to giving you serious consideration.  (You don't cite your rebuilding history, but presumably in restoring your FICO's there's some substantive progress.)

 

As I note, I failed to come up with info on your prospects via internet search.  You may simply have to periodically test the waters once your FICO 8's rise above 720.

 

 

[TeeSharice]

On 3/13/2023 at 6:20 PM, shifter said:

Probably doesn't matter that they were paid. But I didn't have any issues getting Citi after a large IIB. So YMMV. Haven't tried BofA yet because they want EX and it's not clean yet. 

i got 2nd BoA after charge-offs, then got a 3rd BoA after IIB... never repaid in either case

[Atl-Marcos]

On 3/14/2023 at 4:06 AM, hdporter said:

While I acknowledge that from your perspective you "made them whole", you don't stand in nearly the good stead of someone who, unable to keep up with payments, contacted them and arranged to voluntarily pay the debt through hardship arrangements.

 

I'm not busting on you here at all; just pointing out why these issuers might consider reengaging you as a cardholder in a light of "once bitten, twice shy". 

 

A modest Google-dive didn't surface any strong indication of your credit prospects with these issuers after repayment via collections/suit.  (Bear in mind, that someone who IIB has a modest edge; they can't do so again for some time.)

Totally fair. That makes sense to me. I'm not in a huge hurry, I was just wondering. I'm not in 720 range by any means. Will be lucky to break 700 in 2024.