Capital One Charge Off and 1099-C

[Anonymous]

I have this unpaid charge off ($1387) not scheduled to come off until 6/2018.  Called Cap 1 last wk and rep said since 1099-C had been given to me (around $600 filed with my 2014 taxes) that there was no settlement offer and that the balance would need to be paid in full.  Anyone ever heard that before?  Also said that the debt was no longer being pursued by Cap 1 and I could make payment(s) whenever I wanted because there was no due date or minimum amount due.  

[Burned2manybridgesB4]

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@Anonymous wrote:

I have this unpaid charge off ($1387) not scheduled to come off until 6/2018.  Called Cap 1 last wk and rep said since 1099-C had been given to me (around $600 filed with my 2014 taxes) that there was no settlement offer and that the balance would need to be paid in full.  Anyone ever heard that before?  Also said that the debt was no longer being pursued by Cap 1 and I could make payment(s) whenever I wanted because there was no due date or minimum amount due.  

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NO NO NO NO NO.....

Double dipping. Big nope.

1099-C's issued, that's it.

Consult a consumer finance attorney.

[RobertEG]

If you do some research, you will find that the issue of whether sending a form 1099c totally excuses/cancels a debt is an issue of substantial controversy.

Many creditors take the position that sending of a 1099c is required by the IRS in certain cases, and does not necessarily mean, notwithstanding the title of the form, that the creditor has totally cancelled the debt.

There are also advocates of the positon that sending a form 1099c cancels the debt, and thus you no longer have any debt that can be paid.

[Anonymous]

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@Burned2manybridgesB4 wrote:

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@Anonymous wrote:

I have this unpaid charge off ($1387) not scheduled to come off until 6/2018.  Called Cap 1 last wk and rep said since 1099-C had been given to me (around $600 filed with my 2014 taxes) that there was no settlement offer and that the balance would need to be paid in full.  Anyone ever heard that before?  Also said that the debt was no longer being pursued by Cap 1 and I could make payment(s) whenever I wanted because there was no due date or minimum amount due.  

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NO NO NO NO NO.....

Double dipping. Big nope.

1099-C's issued, that's it.

Consult a consumer finance attorney.

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If you paid taxes on the forgiven amount, and later pay the debt in full, you are entitled to a refund of the taxes paid.

I would not pay them one red cent.

[Anonymous]

So how do I get this cleared up?  It reports every month and isnt scheduled to come off until June 2018.  

[Burned2manybridgesB4]

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@Anonymous wrote:

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@Burned2manybridgesB4 wrote:

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@Anonymous wrote:

I have this unpaid charge off ($1387) not scheduled to come off until 6/2018.  Called Cap 1 last wk and rep said since 1099-C had been given to me (around $600 filed with my 2014 taxes) that there was no settlement offer and that the balance would need to be paid in full.  Anyone ever heard that before?  Also said that the debt was no longer being pursued by Cap 1 and I could make payment(s) whenever I wanted because there was no due date or minimum amount due.  

---

NO NO NO NO NO.....

Double dipping. Big nope.

1099-C's issued, that's it.

Consult a consumer finance attorney.

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If you paid taxes on the forgiven amount, and later pay the debt in full, you are entitled to a refund of the taxes paid.

I would not pay them one red cent.

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Right. I'd tell them to pound sand. 

[Burned2manybridgesB4]

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@Anonymous wrote:

So how do I get this cleared up?  It reports every month and isnt scheduled to come off until June 2018.  

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It seems very odd, the nature of them saying they've written off, and reported to the IRS, but then tell you there's still a balance you can pay on, but it's not scheduled in any way. You really need to talk to a CFA, if it's that much of a worry. Personally, I'd be PO'ed just from them pulling this.

[RobertEG]

Payment or non-payment of the debt is not basis for deletion of ther reporting of history on the account.

Normal interpretation of the effect of a 1099c would be basis for your assumption that the debt is cancelled, and thus no longer exists. 

It is discharged, similar to the effect of a BK, without your having paid the debt.

The reported derogs, including the charge-off,  will remain of record until excluded by the CRA no later than 7 years plus 180 days from the reported DOFD unless the credtior chooses to report deletion to the CRA.

If they have not updated their reporting to show a debt balance of $0, you can dispute the reported balance.

If you wish deletion of the CO or of the entire account, you can pursue a request for GW deletion to the creditor.

[Anonymous]

DId you ever get this resolved? I am going thru the same thing.

[Anonymous]

So I actually had 2 unpaid chargeoffs with Capital One. One was for 1300 and the other 1000. A couple of months ago I called the Executive office and they returned my call. They referred me to another person who I spoke with. Wouldn’t do a pay for delete. I never received a 1099-c for the 1300 account but did on the 1000 account. They offered a settlement on the 1300 but I went ahead and paid it in full.  As far as the 1099-c account they weren’t asking for payment anymore but it was still reporting late every month along with the other one if I remember correctly. While on the phone I went ahead and paid it off as well, the full amount of 1000 although I had l already paid taxes on the 1099-c amount of 600 which I’m assuming isn’t much. I probably could have done this a different way but my scores did rise by 45 points when the accounts went to paid rather then late. All in all I don’t regret paying it. I know it’s done and I don’t have to think a about it. One of the accounts falls off Oct 2018 and the other Mar 2019.

Paying these 2 off has helped get some great credit cards. Just 3 wks ago I was hesitant to apply for the CSR because these accounts still show on my credit report but did anyway and was approved for 21k. I wouldn’t have applied if the accounts were still unpaid and late.

Ask me any other questions you may have. I’ll answer to the best of my ability.