O.k., so my roommate is being sued by BoA. He had a credit card that came with his bank account when he first opened it 4 years ago. He used the credit card, but he also kept up with the payments and finally decided to pay it off and close his account. The last statement he received 4 years ago said he owed around $25. He paid that and closed everything down.
Now he's being sued because the bank is trying to convince him that the last statement he received was outdated and he had additional charges on the account that he never paid off. Thanks to his high interest rate, the amount he owed was allowed to sky-rocket for all that time, and BoA is claiming he owes them around $1400 plus legal fees which takes his bill to over 2 grand. He has a minimum wage job and can barely afford to pay his half of the rent as well as feed himself. Whoever spoke to him about payment plans he can use to pay off this debt said that he could make an initial payment of $500 and monthly payments of $250 until the debt is payed off.
He can't pay his half of the rent, all of his bills, and these monthly payments all at the same time, and I don't know what to do. I've been trying to help him contact legal aid, but apparently it's more complicated than it has to be because he lives in a different county than he used to bank in.
Does anyone have any advice? This whole thing sprang from a tiny mistake, and now the bank is letting him have it.