Cancelled/ Forgiven Chase Debt

[Anonymous]

I called Chase today to get a feel for them possibly doing a PFD and was told that they are no longer collecting on this debt, will not pursue collections, and any payment I make on the account is strictly voluntary. I don't know if I just misunderstood the gentelman because he was of indian ascent but I mentioned I did not receive a 1099-C and he said that the principal debt was under $600 so a 1099-C was not required. But the balance still shows a past due balance of $692. Can they do that if they cancelled the debt? Shouldn't the balance be 0? What kind of proof do I need to show the debt was cancelled or forgiven? Do you think they would be willing to PFD for less than original amount?

[RobertEG]

If you do some google research on 1099c and whether or not it requires a creditor to also report a $0 debt balance, you will find that it is a topic of controversy and confusion.

Most assert that sending of a 1099c is cancellation of the debt, and thus mandates update of their credit reporting to $0, but some credtiors disagree, citing their interpretation of the IRS code as requirng a 1099c when they still consider a debt to be owed

[Anonymous]

Where can i find a more direct answer? Should I dispute it? Anyone else gone through this.

[Anonymous]

It may have to do with the lawsuit filed against Chase by the CFPB last year.  Google Chase whislteblower and you will get a very interesting story of what happened.  Also look up the lawsuit and you can see all of the details. 

Basically Chase was sued because they were not following proper collection procedures and jumped straight to filing judgments.  This happened to me. Part of the ruling was that they could no longer collect on any the accounts that were charged off between maybe 2008 - 2015 (I forget the years to be honest).   Anyway, he was correct. They can no longer collect on it.  You can still pay it of course  I just received my letter from them this past Friday letting me know that they have ceased all collection efforts. If the judgement shows on your reports, they are supposed to have it removed.  Not sure about accounts that never resulted in a judgement.  Also, this did not  wipe the debt from their memory so getting back in with them may still be very hard.  

If your account was charged off during the years specified in the lawsuit, then your account is included whether they filed a judgement or not. At least that is how I understand it.  

[wa3more]

Cam is right, I received the same letter as well regarding a judgment i settled with chase. 15k turned into 19k judgment with fees and interest. I paid off 3k to sheriff then they sent payment back saying file was closed. I called chase and asked what was going on. They would not tell me but I said I will settle 16k balance for 20%, they accepted without any thought. In NY, settled accounts are deleted from credit reports after 5 years from filing date.

Sounds like your balance includes interest. Chase can't include interest on 1099. For the PFD, they will not do it. I wrote letters and despite my 28 year relationship with them, they said no. I still dispute and after 6.5 years, they still verify. I was given bad information, when I was trying to defer home equity payment when I lost my job but they refuse to listen so I just gave up

[Anonymous]

I have a Chase card with a $3,854 balance. Chase sold it to Midland, who served me a "civil" warrant. I had 2 with Midland that I had recently cleared. I think they realized that the SOL was coming up in 2 months. I couldn't believe they served me with papers. I've been disputing this for the last 6 weeks. I am on my 3rd letter to them disputing the amount. I know this was for a balance that was originally $1,900. They have yet to show me how they get to the $3,854 number. However, I am due to go to court in 4 weeks. I don't want to run the risk of having a judgement against me if I go to court and lose. I am not sure who will blink first. 

[Anonymous]

Claims closed on 3/23/16. My account wouldn't have been impacted as I was a customer before 2009. Good read over in the "Credit in the news" forum. 

[wa3more]

Oymy,

see if your contract has arbitration. I would send a letter to Midland saying you elect private contractual arbitration with JAMS.

I think Midland got in a lot of hot water with these chase accounts,

[Anonymous]

So they will not do a PFD for less or they won't do a PFD? I really need it removed or it ruins my ability  to buy a home for the next 6 months. we never got a letter from Chase, can i request that letter?

[wa3more]

They will not do a PFD. Ask Chase to send you a letter that they are no longer collecting on this.