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Synchrony Bank 1099-C x 2

tag
AutoBot
Established Contributor

Synchrony Bank 1099-C x 2

Recieved 2 separate 1099-C notfications in my mail yesterday from Synchrony Bank. Both accounts on my CR haven't changed and are both reporting a different balance.

 

Can I assume at some point in the future here those will be changed to a $0 balance?

Message 1 of 41
40 REPLIES 40
RobertEG
Legendary Contributor

Re: Synchrony Bank 1099-C x 2

Issuing of a 1099c is considered, by some creditors, to be an IRS formality, with no actual cancellation of the debt intended in their part.

It is a legal issue that remains unsettled on the appellate level, and thus sending of a 1099c, while titled "Cancellation of Debt," is murky.

 

If you google the issue, you will find many who argue that if the consumer pays tax on the 1099c, they have converted the debt to income by payment, and thus there is no longer a debt.  Under that interpretation, the creditor must, if you pay the tax, update the debt to $0.

 

I would send a direct dispute to the creditor, asserting that the debt is cancelled, and thus must be updated to $0

They may simply do so, without invoking a claim that their sending of the 1099c was not actually a cancellation of the debt.

Otherwise, you may need to lititigate if you pursue required update ot the debt to $0 based on cancellation.

Message 2 of 41
AutoBot
Established Contributor

Re: Synchrony Bank 1099-C x 2

Appreciate the info. I will give it a month to see if anything changes on my CRs with these two accounts.

Message 3 of 41
AutoBot
Established Contributor

Re: Synchrony Bank 1099-C x 2

Just sent off 2 letters to Synchrony bank asking that they change the account balance to $0. Hopefully that will be all it takes, but I suspect they are going to be ass monkeys about it. Smiley Wink

Message 4 of 41
AutoBot
Established Contributor

Re: Synchrony Bank 1099-C x 2

If Synchrony Bank does not change the balances to $0, my next step is to dispute with CRAs to remove the entire tradeline using a copy of the 1099-C.

Message 5 of 41
AutoBot
Established Contributor

Re: Synchrony Bank 1099-C x 2

I called Synchrony and disputed them still reporting a balance on the SYNCB/AMAZON and SYNCB/WALMART accounts after sending me a 1099-C for both. Just got a letter back from them. The letter is confusing?

 

Please accept this letter as written confirmation; Synchrony Bank is no longer reporting the above mentioned accounts. Please allow up to 60 days for these updates to be reflected within your personal credit reports. Please reatin this letter for future reference.

 

As reqired by the statue of limitations, Synchrony Bank is no longer persuing collection activity on these accounts. The statute of limitations does not change our obligation to accurately report account history. We last reported the Amazon account on <date> for the amount <$$$$> and reported the Walmart account on <date> for the amount <$$$$>. As the accounts have been reported accurately, your request to alter the reporting of the accounts is respectively declined.

 

So you are no longer reporting the accounts and allow for 60 days for these updates, but will not alter the balance $0? What are you updating? Is this confusing? Smiley Mad

Message 6 of 41
gdale6
Moderator Emeritus

Re: Synchrony Bank 1099-C x 2


@AutoBot wrote:

I called Synchrony and disputed them still reporting a balance on the SYNCB/AMAZON and SYNCB/WALMART accounts after sending me a 1099-C for both. Just got a letter back from them. The letter is confusing?

 

Please accept this letter as written confirmation; Synchrony Bank is no longer reporting the above mentioned accounts. Please allow up to 60 days for these updates to be reflected within your personal credit reports. Please reatin this letter for future reference.

 

As reqired by the statue of limitations, Synchrony Bank is no longer persuing collection activity on these accounts. The statute of limitations does not change our obligation to accurately report account history. We last reported the Amazon account on <date> for the amount <$$$$> and reported the Walmart account on <date> for the amount <$$$$>. As the accounts have been reported accurately, your request to alter the reporting of the accounts is respectively declined.

 

So you are no longer reporting the accounts and allow for 60 days for these updates, but will not alter the balance $0? What are you updating? Is this confusing? Smiley Mad


I take this statement to mean that they are going to be removing the TLs from your CRs. The rest of it is telling you that their reporting of the balance due is correct and this isnt necessarily true, its unsettled law as to whether or not a 1099C discharges the debt or not and there are different rulings on this. I would just let this lay and see if the TLs are removed in their entirety or not. If not then I would file complaint with he CFPB alleging that they stated they were no longer going to report the accounts. Here is some good info on 1099Cs

 

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

Message 7 of 41
AutoBot
Established Contributor

Re: Synchrony Bank 1099-C x 2

If there is no change to my CRs after 60 days, I will have to take more steps.

Message 8 of 41
AutoBot
Established Contributor

Re: Synchrony Bank 1099-C x 2

And still waiting to see if Synchrony bank actually removes the 2 tradelines.

Message 9 of 41
AutoBot
Established Contributor

Re: Synchrony Bank 1099-C x 2

Good grief it sure is hard to wait 60 days to see IF they will actually remove these from my credit reports. Smiley Sad

Message 10 of 41
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