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I have an old charged off account with JPMC; it is scheduled to fall off my reports next September.
I originally owed $30k on this account. After it charged off, I made payments of $500 a month towards it and got the balance down to $20k. Suddenly, they issued a 1099 and said they would no longer pursue collections, which triggered a tax liability. I didn't want that outcome as I take pride in paying back what I owe, but that was their decision. I paid the tax liability.
The issue now is that it continues to report as 'late' and I have something like 75 90 day lates on my Equifax report. Equifax is also reflecting these as if they are recent late payments. It also says I owe the $20k...which I know is a grey area of sorts. Since they 1099'ed it, they aren't collecting but technically I still owe it.
First, I thought that once an account was charged off, no more payments would be considered 'late'. Secondly, I'm concerend that they might still try to sue me..if it's still showing as late and having owed money...what's to stop them from suing?
What can I do to resolve this? Any ideas? Thank you!
A CO is an accounting term. It just means that on their books they've written the receivable off. That has no bearing on the collectiblity of the debt. You need to look into whether they can continue to pursue you after they've sent you a 1099.
@Anonymous wrote:A CO is an accounting term. It just means that on their books they've written the receivable off. That has no bearing on the collectiblity of the debt. You need to look into whether they can continue to pursue you after they've sent you a 1099.
Okay...but if they cancelled the debt and then I paid taxes on that cacelled debt...how is it that they can still list it as owed debt?
The derogs are unaffected and remain.
However. the current balance should have prompptly been updated to $0, not based on the charge-off, but based on their cancellation of the debt and your subsequent payment of taxes on the amount as "income."
@RobertEG wrote:The derogs are unaffected and remain.
However. the current balance should have prompptly been updated to $0, not based on the charge-off, but based on their cancellation of the debt and your subsequent payment of taxes on the amount as "income."
I disupted this a while ago and they confirmed it. In fact, that's when the late payments started showing up. How can I get them to update to $0? And while the derogs remain, would it still show as late every month if the balance is $0? I realize the old derogs will stay, but shouldn't they stop adding new ones if the balance is zeroed out?
I realize this is kind of an old thread, but I wonder if the OP ever got the balance reported to $0 and if so how.
@AutoBot wrote:I realize this is kind of an old thread, but I wonder if the OP ever got the balance reported to $0 and if so how.
No, I never did. It's supposed to fall off this upcoming September anyway and I didn't want to spend a lot of cycles on it since it's going to be gone soon.
Thanks for the update.