QUESTION
Original Creditor Still Reporting Past Due Balance After Issuing 1099C Forgiving the Debt. Can They Continue to Report as Currently Past Due?
Asked on Jun 04th, 2014 on Debtor and Creditor - Florida
More details to this question:
An original creditor issued a 1099C for last year's tax period forgiving approximately half of the $6,000 past due balance (the other 1/2 not forgiven is presumably interest and fees). The reason states for the forgiveness on my 1099C is box G, business policy. The company also sent me a letter saying they were forgiving my debt and would no longer pursue collection activity. I submitted a copy of the 1099C to IRS and paid applicable taxes. I have checked my credit report and the company has been reporting a CURRENT past due balance for the full amount previously owed; an amount that goes up every month. Can a creditor receive the benefit of a tax write off, cause me to be penalized by assuming additional tax liability, yet continue to report me as currently past due?
1 ANSWER
Consumer Debt Collector Harassment & Abuse Attorney serving Tampa, FL
Partner at
Tischhauser Law Group
2 Awards
Typically, no. In fact tif they did a 1099c and continue to report an accruing amount owed, you may have both a FCRA case and an FCCPA case to address. You should consult a local attorney in this regard ASAP! If you have further questions, please feel free to contact our office at 1-800-922-6442 to schedule a FREE consultation.
Answered on Jun 10th, 2014 at 12:44 PM
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