Pioneer/MidCountry Bank

[taskforce971]

Here's one that probably doesn't come around too often. I have a one year old charged-off loan with this company with a balance of $826.00. They are the OC and the debt is still with them. Long story short, I call them today and tell them I want to pay the $826 and just get this off my shoulders, I tried PFD after PFD with no success so I just gave up and decided to just pay it to at least help my utilization. Anyway, they agree, they say pay us the $826 and we'll update it to a $0 balance paid charge-off; all was well until I ask for something in writing stating that my $826 payment would be considered payment in full. After my request the guy says no, "I don't feel like doing that, pay us and that's the end of it." Of course at this point I said no myself, I told him I wanted something in writing and again he refused. So shortly after that I say well if I don't get this in writing than I have no intention of paying the balance, he then tells me that he does not care and he will just write up a 1099-C and report it to the IRS. At this point I don't know what to do, I've tried pleading with them over a simple letter but it gets me no where. Theoretically speaking, if this $826 debt does get sent to the IRS does the OC have to report a $0 balance and then I just take the hit when I do my taxes?

[RobertEG]

I would send the payment under cover letter stating that payment is considered satisfaction of the debt in full.

It will then be up to them to assert any additional fees that are legally due.  Note in your letter their statement to you that remitting that amount will be considered satisfaction of the debt. 

If they report paid with $0 balance, that is their reporting that the debt is satisfied.

[taskforce971]

The only issue I am having at this point is that fact that they explicitly stated that even if I make the $826 payment, which is all they are legally due, they will not update the account to paid in full. The recovery manager stated himself that he would see to it that my account be updated to "settled in full for less than the full balance." I honestly don't know why they're making it so hard when all I asked for was a simple letter, I obviously have no intention of paying this debt if that's they way they'll report the account after it's paid in full! Now I guess the biggest question is what happens if they do send that 1099-C to the IRS?

[LIGHTNIN]

This is a military bank, correct?   Were you talking with a manager? if not, call back and talk with one. You may get better results that way.

Is this bank local?  if so, maybe going there in person may help you, in resolving this situation.

[RobertEG]

If your payment comprises the full amount of the debt, they have no alternative other than to report paid, $0 balance.

You dont need their "promise" to report accurately.  The statute requires them to do so.  If they report settled for less, that would be inaccurate unless they provide you a statement of remaining debt due.

If they agree that payment satisfies the debt, and yet refuse to report that fact, simply file a civil action in small claims court.

[taskforce971]

It's not a military bank per se. Unfortuantely the bank isn't local and believe it or not this experience I had was with a manager. He literally told me that he did not care if I paid the account in full, he said that for wasting his time he would see to it that the account be updated to settled instead of paid in full.

[taskforce971]

Thanks RobertEG. That seems like a very realistic solution and its probably what I'll end up doing. I just wouldn't want it to go to the extent of legal action simply because a manager there is being spiteful. Should I actually just take this matter up to their corporate office?

[CustomerAdvocate_PS-MCB]

TaskForce971 -

This is the Customer Advocate at Pioneer Services-MidCountry Bank.  I just noticed your post.  Mod Cut Our organization, and the 300+team members we have around the country, are wholly committed to helping and assisting our customers (current and former) and the communities we serve at all times.  I apologize if you feel you were not treated in a courteous manner, and that there may be some confusion regarding a particular matter.   

Customer Advocate

Pioneer Services/MidCountry Bank

1-800-538-2388

[CustomerAdvocate_PS-MCB]

TaskForce971 -

Apologize, but I inserted the wrong telephone number in my prior post. Sorry for any confusion.

Customer Advocate

Pioneer Services-MidCountry Bank

1-800-538-4233