Balance owed 1099c

[Anonymous]

I settled all my debt a couple years ago except for 1 big one, a 40k debt with Chase. They sent me a 1099c for the 2013 tax year which I paid a bunch of taxes on, with the debt being cancelled (not settled). The balance owed still shows up on my credit reports. This is a fuzzy area it seems with no clear cut answer as whether the balance should show up or not. I have disputed it with the CRA's and spent a lot of time on the phone with Chase. They won't zero the balance. Does the balance fall off after 7 years from delinquency? I'm in year 5 now I think.

[gdale6]

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@tj21 wrote:
I settled all my debt a couple years ago except for 1 big one, a 40k debt with Chase. They sent me a 1099c for the 2013 tax year which I paid a bunch of taxes on, with the debt being cancelled (not settled). The balance owed still shows up on my credit reports. This is a fuzzy area it seems with no clear cut answer as whether the balance should show up or not. I have disputed it with the CRA's and spent a lot of time on the phone with Chase. They won't zero the balance. Does the balance fall off after 7 years from delinquency? I'm in year 5 now I think.

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The account becomes excluded at a maximum of 7.5 yrs from the DoFD, most of the CRAs will drop it at the 7 years mark. Here is some info you may want to read on this

http://www.forbes.com/sites/peterjreilly/2013/05/20/bank-cannot-issue-1099-c-and-subsequently-try-to...

[Anonymous]

Interesting article, thanks for the link.

I guess I'm having a hard time understanding what is discluded. The account will still show up on my credit report, and lates will fall off as they age to 7 years, so what is different after the first 7 years? Does my balance show $0? Anything else? Still show up as a charge off?

[gdale6]

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@tj21 wrote:
Interesting article, thanks for the link.

I guess I'm having a hard time understanding what is discluded. The account will still show up on my credit report, and lates will fall off as they age to 7 years, so what is different after the first 7 years? Does my balance show $0? Anything else? Still show up as a charge off?

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The account is gone after at most 7.5 yrs from the DoFD, the CRAs usually drop it at the 7 year mark to make sure they stay in compliance with the law.

[Anonymous]

The entire account is gone from my credit reports as if I never had it? That is very good news!

[gdale6]

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@tj21 wrote:
The entire account is gone from my credit reports as if I never had it? Yes That is very good news!

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[RobertEG]

The DOFD applies only to a reported charge-off or collection.

The posted issue does not relate to the reporting of a collection or charge-off, and thus DOFD is not detrminative of whether the reported balance is accurate.

If, in its course prior to itscancellation, the debt was either charged-off or placed for collection, the CO or collection would become excluded no later than 7 years plus 180 days.  However, that is not the posted issue.

OC accounts do not become excluded from a consumer's credit report based on any provisions fo the FCRA.

You have an issue of whether you still owe a debt.  Having disputed and obtained verification that they consider that information to be accurate, your next step is to file a complaint with the CFPB for administrative review of their reporting, or to file civil action against the creditor.

Credit report exclusion does not appear to be an issue in this situation.