Proper Reporting of canceled debt

[RobertEG]

+1

Excellent summary.

The fact that they did a CO is irrelevant to continued consumer obligation for the debt, their ability to continue collection efforts, report lates, or payment, non-payment, or discharge  of the debt.

It remains as their reporting of a business accounting measure they just so happehed to have also taken at that prior point in time.

By payment or discharge of the debt, one does not "pay off the charge-off," they pay or obtain discharge the debt that was subject of the CO.

It thus remains as accurate reporting. 

Deletion would thus be pursued by a GW request.  Probably a hard-sell if they took a net loss on the cancelled debt.......

[sweetness1127]

They did more than a simple charge off. They sent 1099c and canceled the debt. Their reporting a CO as late payments in this case is incorrect. This company is so crooked and some of the things are catching up with them.. hopefully the rest of their pracitices will too. One of the credit reporting agencies has most of the things listed correctly so it can be done.

[sweetness1127]

oh if its so correct, show me where it says they can do this when it goes against logic??? why have a CO listing if its just going to be reproted as 90+ days late for the remainder of the 7 years after charge off...and even after its canceled..... oh wait nobody can seem to find this information can they? and people wonder why creditors get away with this stuff. the system isn't here to protect the consumer... its there so the creditors can use it as leverage or blackmail over the consumers head..and why did we get behind in the first place you wonder... because Chase was balance chasing!  every other agency from energy to the federal government has a precise definition of a discharged debt...why are banks and credit card companies the only ones exempt?

[guiness56]

A CO is an accounting term only.   A CO only benefits the creditor and not the consumer.  They get some type of relief from the IRS.  It does not mean you no longer owe the debt.

You are talking about 2 different things.  A CO and a 1099-C.  Up until the time the creditor issued that 1099-C they are allowed to pursue collection activity on the debt. Saying you are late is one of the collection activities they are allowed.   It is once the 1099-C is issue that they cannot.

Banks are not exempt, they just fail to follow the laws.

And there are laws in place that say how they have to report.   

As far as not being able to find the information,  I spend much of my day trying to help others find what they need.  It is not always an easy task.

[sweetness1127]

I appreciate all you have done to help Guiness56, my last two reponses were directed towards the other guy. I spent great deal of time reading laws and guidelines and it is just amazing that for something this important how hard it is to find specific guidelines companies must use.  I even saw on the consumer finance website where over 15,000 credit reporting complaints have been made since October 2012.  Companies rubber stamp "information reported correctly" because most consumers can't point to a legal code or something to show how they are doing it wrong.

Again I thank you. I am still pursuing based on it being a canceled debt since December 2012 and their improper reporting since then.

[guiness56]

I'm still looking.  When I find it I will let you know.