Date of delinquency

Anonymous · ‎04-29-2015

I had an account with Capital One that went delinquent in 2008. In May of 2009 I made a sporadic payment, but it was smaller than the amount due and did not pull the account anywhere near out of deliquency. Capital One is now reporting my original date of delinquency as May of 2009 and it should be early 2008 and they are refusing to report the information correctly. Can a partial payment that did not pull the account out of delinquency be considered as the original date of delinquency? Also, I have since been sent a 1099 cancellation of debt form on this debt and I have already paid the taxes on it. Capital One is saying that there is no longer a balance because they cancelled the debt but they are posting it as still having a balance. When asked about this, they said they are reporting correctly because there was a balance at one time and it does not matter if they cancelled it or not. If they sent me a cancellation of debt and I have already paid the taxes, are they able to post a balance when they admitted that there is no balance and I am no longer liable for the debt?

Anonymous · ‎04-29-2015

On the canceled debt, no, I don't believe they can continue to report a balance. A 1099-C indicates they have cancelled the debt and, since you no longer are obligated to pay, it is considered income. I don't believe they can report to the IRS that you have received this income and still report it as a collectible account.

gdale6 · ‎04-29-2015

If you have an earlier credit reporting showing the DoFD in 2008 you would file a complaint with the CFPB for reaging it is illegal. The DoFD is the 30 day late that immediately preceeds the CO. They need to report a 0 balance since they sent the 1099-C...

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

Anonymous · ‎04-29-2015

I have a credit report that shows my payment history (no payments made) from 2008 and a payment in May of 2009. Now Capital One is reporting the date of delinquency as May of 2009, even though it should be 2008. Capital One had never reported a date of original delinquency, only showed a pament history until I recently disputed it. Now they are posting the date of delinquency as 2009. Is the credit report that only shows payment history and not date of delinquency sufficient enough evidence to file the complalint? Are there any steps that I can take to make Capital One stop reporting an active balance if I have a copy of the 1099?

RobertEG · ‎04-29-2015

Did they ever report a charge-off to the CRA?

Anonymous · ‎04-30-2015

yes it shows the CO on 11/09 this is what they show but I only made one payment in 09 and it did not in any way bring it current and I have an earlier CR showing late payments starting in 3/08

jan feb mar apr may jun jul aug sep oct nov dec

2009 90 120 120 * * 30 60 90 120 120 CO CO

2008 * 30 60 90 30 60

Anonymous · ‎04-30-2015

Based on the info you posted, May-2009 is correct.

However, the lates aren't consistent for not paying at all, except for that one payment. Are you sure you never made any other payments? Check your old statements. On an aside, the ability to look back many years is an advantage of getting mailed statements verses only on-line statements which tend to go poof after a year or two.

Another possibility is they fudged the minimum due / reporting to forestall charge off. If you had made no payments at all, this would be a cinch to dispute. But since you paid, and they accepted that payment back in May-2009, that makes disputing DOFD more challenging.

A "forgiven" debt is still a debt. From my personal experience, a 1099-C doesn't necessarily zero out the debt on reports - heck, some creditors continue to report monthly afterwards.

And there are some legal questions regarding whether and how a "forgiven" 1099-C debt can still be pursued in the future. While likely not applicable in your situation, it's generally best to avoid disputing too aggressively until it's out of SOL, which it may already be (it's approaching the 6 year mark), unless you live in a state, such as Rhode Island, Montana, Kentucky, or one of a few others with a very long SOL.

Anonymous · ‎04-30-2015

I did a lot of research on this and found four places with information on this topic. Three of the four places were in agreement. What they said was that once you go delinquent on an account, you must make up missed payments to bring youself current. If you don't do that, then you are not considered current. Is this true to anyone's experience?

gdale6 · ‎04-30-2015

@Anonymous wrote:
I did a lot of research on this and found four places with information on this topic. Three of the four places were in agreement. What they said was that once you go delinquent on an account, you must make up missed payments to bring youself current. If you don't do that, then you are not considered current. Is this true to anyone's experience?

That is true if you dont pay enough to make up all the missed minimum payments then its never brought into current paid as agreed status and once it reaches CO it will never again be a current paid as agreed account even though you may pay up all past due payments and resume monthly payments.

Anonymous · ‎04-30-2015

Once the account went delinquent I didnt make payments for a year, then made one small payment. Does that mean that the orginal date of delinquency is from the first missed payment, not from the one small payment made a year later?