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Hello and thanks for all of the great advice I've received so far....
I posted an item yesterday about receiving a 1099-C from Chase. After reading replies and researching previous posts, I looked at my CR to see how it has been reported. To date, it simply shows as a C/O with the full amount outstanding. On two of the reports, it doesn't inidcate the account is closed.
Since Chase has "cancelled" the unpaid debt, how should this be reported. Do they have to report it as closed? And do they have to show the corrected amount (debt minus prinicipal that was cancelled?
Thanks!
Closed/opened is not really relvant, but the balance needs to be zeroed out. Some banks argue against this, saying the 1099-C is 'only' an administrative thing.
Thanks -- so what recourse do I have? How do I proceed to get the issue resolved?
I would start with a courtesy call to the bank. Ask them why they are still reporting a balance if the debt is forgiven via 1099-C
Just spoke with a supervisor at Chase. She tells me that "cancellation of debt" simply means they will not longer be making any attemtpts to collect the debt, but that they do not report it, as such, to the credit bureaus and that the amount owed is still reported. She tells me they will review my credit report and mail me a letter. At this point, it seems that Chase is not being cooperative and will not adjust the balance or change their reporting.
Any further advice?
Thanks!
Yeah, Chase is one of the A-hole banks that want to have it both ways. There has been a number of lawsuits over this (people sued after having debt cancelled) but there is no definitive case law one way or the other, decisions seem to be all over the place. Its really ludicrous.