Who Does Bank of America Sell Debt To?
- Author: Mike Weston
- Last Modified: July 18, 2025
Once a credit card or loan account becomes seriously delinquent—typically after 120 to 180 days of nonpayment—Bank of America will often charge off the account. This means they write the balance off as a loss for accounting purposes.
Bank of America may then package up the debt and sell to a debt buyer.
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Who Does Bank of America Sell Debt To?
Bank of America may sell portfolios of delinquent accounts to major debt buyers, who specialize in purchasing and collecting on old debts.
Some of the most common companies that may purchase Bank of America debt include:
✅ Midland Credit Management / Midland Funding
One of the largest debt buyers in the country. Often sues consumers after buying portfolios from banks like BofA.
✅ Portfolio Recovery Associates (PRA Group)
A publicly traded debt buyer known for aggressive collection and frequent lawsuits.
✅ LVNV Funding / Resurgent Capital Services
LVNV buys the debt, while Resurgent handles the collection. Often sues through law firms.
✅ Cavalry Portfolio Services
Another large buyer of credit card debt from major banks, including BofA.
✅ Absolute Resolutions Investments
A smaller but active player in the debt buying market.
These companies often buy bundles of charged-off accounts for pennies on the dollar, and then try to collect the full amount—including interest and fees.
What Happens After Bank of America Sells Your Debt?
Once your account is sold:
You will no longer deal with Bank of America
The debt buyer becomes the legal owner of the debt
You may receive collection letters or phone calls
You may be sued in court if you don’t resolve the debt
The account may appear on your credit report as “sold” by BofA and a new collection entry from the buyer
⚠️ Important: Just because a debt buyer contacts you doesn’t mean the debt is valid or collectible. You have the right to demand proof through a debt validation request.
What’s the Difference Between a Debt Buyer and a Collection Agency?
Understanding who you’re dealing with matters:
🏦 Original Creditor (Bank of America):
Issued you the credit card or loan
Typically has detailed account records
May be more flexible in negotiating early settlements
💼 Third-Party Collection Agency:
Collects on behalf of the original creditor
Does not own the debt
Can only collect during the agency agreement
🏚 Debt Buyer (Midland, PRA, LVNV, etc.):
Owns the debt after purchase
Can collect directly or sue you
Often lacks original account-level documentation
Will pursue collection for years, and may renew judgments
Can You Be Sued by the Company That Buys the Debt?
Yes. In fact, many debt buyers specialize in litigation. Once they own the debt, they have the legal right to file a lawsuit.
If you are sued:
Do not ignore it—you could face a default judgment
Respond to the lawsuit by the deadline
Challenge the documentation—debt buyers often lack complete records
Consult a debt defense attorney to protect your rights
Final Thoughts
Need help fighting a debt buyer lawsuit? Contact Weston Legal, a law firm that defends consumers against debt buyers like Midland, LVNV, and Portfolio Recovery. We offer flat fees, payment plans, and experienced legal support nationwide.
Mike Weston is a seasoned debt lawsuit defense attorney and founder of Weston Legal. Since 2005, Mike has devoted his career to compassionately helping consumers struggling with issues involving their personal and business debts. Mike is grateful to have been able to help tens of thousands of clients become empowered with knowledge on the path to financial stability.
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