BOA Still reporting balance after I received a 1099-C

[HD247]

I just remembered I received a 1099-C from BOA in 2012, of which I filed on last years taxes.  If you look at my Credit Report, they are still reporting a balance.  Aren't they suppossed to remove the balance because the Cancelled the Debt?  This was also past the SOL for the debt?  If they are suppossed to remove the balance, should I ask them to remove the balance?  By doing so, is there a possibility that my credit score will go down?

[guiness56]

They should be reporting a 0 balance.

If I remember correctly, there was a recent post about this same thing with BoA and they refuse to update to 0 stating they are reporting correctly.  I'll see if I can find that thread and what, if any, the outcome was.

[RobertEG]

You are correct.

Sending a 1099c is very different from either doing a charge-off or selling the debt.

A charge-off has no effect on the reported debt as far as credit reporting, as it is merely the reporting of an internal accounting measure they chose to take.

If the OC sells the debt, they must report $0 balance, as there is no debt now due to them, but that reporting does not discharge the debt.

The new owner can report it.

However, when a creditor sends a 1099c, that is their formal statement that the debt has been cancelled.  Ergo, there is no longer a debt, period.

No one can thereafter attempt to collect on the prior debt. 

You could send a direct dispute, with the asserted inaccuracy being their failure to have timely updated their prior reporting so as to maintain its current accuracy, as required under FCRA 623)a)(2),  You may ultimately have to take that step, but I would first give them an informal call, reminding them of their obligation to have updated their reporting.  It is most likely simply an admin failure to have lollowed up after they washed their hands of the debt. 

Attempting to first handle it informally might result in no need to file a dispute, and thus avoid a dispute flag being placed in your file.

[HD247]

The two lines on CR for the BOA accounts shows DOLR at 1/11.  They sent me the 1099's December 2012.  My fear is if they update the account it will lower my credit score?

[guiness56]

What about status date?  That is the last time they reported.

[HD247]

Sorry, the Status of: Jan 2011.  Date of Last Activity 11/2008.

[guiness56]

Yes, it could.

[HD247]

So I should just leave it alone?

[guiness56]

I would.

If you still have the 1099-C and any creditor ever asks about it, just show them that.

[RR5]

We actually recieved a 1099C last year too, we included with our 2011 taxes and paid the tax bill, and guess what? BOA is still reporting every month that we owe them a balalnce.  We tried sending letters, and called about 10 different people, but nothing changes. From what i hear, they're e big pain to get them to show 0, even though they're required to.

I did hear a couple people did get them to show 0 but that was after they took BOA to court...  

We just show the proof that we paid taxes on it and the 1099c from BOA and so far nobody cares about the balance. (but it is keeping my DH score low, since they keep updating every month.)