CRA Claims 1099-C Will Be Filed Among Other Things, What Does This All Mean???

[wwtthhpp]

This is in the state of Arkansas.

I got a call from a company by the name of CRA, they said it is not an acronym for anything. They stated they are not a collection agency or anything like that but some other kind of company. They reported that I have an old debt with Citibank on a MasterCard. They said the original credit limit was $1000 the ending balance was $1400 but the balance I owe is $3415 with fees, interest, etc. They said the account was opened in 1999 and the last payment was made on the account in 2002.

They said they are going to file a tax lien (1099-C) if I do not settle this debt with them today for $503.12 by 5:00 PM EDT (I thought they were not a collection agency!?!?!) The person I spoke to said that because of the Arkansas tax rate, that I would be liable for about $1500. They then tell me that this will stay on my credit report for 15 years but if I settle they will report to all 3 bureaus that it is paid balance. I personally do not remember this card/debt at all. I then asked them to mail me some type of verification on the debt but they said 20+ mailings had already been sent out and they cannot send another and were going to process this tax lien right away unless I agreed to settle. I have moved several different times between 3 different cities since then so it is possible I could have missed whatever they said was actually sent.

My question is what does this all mean? What if I do not settle? Why can/will they not send me some type of verification? If they file the 1099-C with the IRS, what does that mean when I am completing my tax information in 2010? What if I did settle without some type of verification the debt is actually mine? Is the debt truly settled then or is the amount I did not settle for sent to some collection agency, filed with the IRS, etc.?

Any help is greatly appreciated. Thanks.

[Anonymous]

The SOL on a CC is 3 years in Arkansas!

Only a financial institution can send you a 1099-C  and it must be done with in the same year that they CO it to profit & loss.

If you got their addy when they called you, mail them a DV  CMRRR.

make sure that you have their name, addy and the phone # that they called from. File a complaint with the FTC, Your AG office and with the AG in the state that they are in.

Make the complaint short and to the point.........They threatened me with a 1099-C that they would send to the IRS in order to make me pay. They also told  me that if I did not PIF today that they would continue to report this debt for 15 years!

  They also told me that they were not a collection agency which is not true.

The OC must do everything in their power to collect (up until SOL) before they can file loss with the IRS. When past SOL they can only report CO until CRTP passes.

They can file a lawsuit but can not wil because the SOL has past.

If they do send you a 1099-C  file a complaint with the IRS!!!!!

Message Edited by HappyDays on 08-21-2009 12:25 PM

Message Edited by HappyDays on 08-21-2009 12:29 PM

[wwtthhpp]

Are they not technically a financial institution?  I did not get the address when they called.  I also told them I do not know about the debt or anything like that and I got a telephone number on them because I wanted to see what I could do as far as verifying the debt myself.  I was trying to be real careful here as to not reset the SOL in anyway if possible.  Should I call back and try to get additional information like the address and such?

What should be my next move?

[Anonymous]

A financial institution would be somthing like a bank. A CCC, or a mortgage corp would get the money that they loan you from a bank.

The only way to reset SOL is by making a payment after DOFD. By making payment it would change your DOLA which most states use to set SOL.

In your state the SOL on a CC (open account ) is 3 years from DOLA. A phone call or letter does not reset CRTP or SOL.

Check you CR to see if anything is reporting on this.

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

They gave you incorrect info to begin with. The state tax rate has nothing to do with anything. Only the state SOL comes into play. They are just trying to scare you into paying.

If they call again be nice & act like you want to pay. Ask for their addy. DO NOT agree to pay over the phone or by CC.

Message Edited by HappyDays on 08-21-2009 01:07 PM

Message Edited by HappyDays on 08-21-2009 01:08 PM

Message Edited by HappyDays on 08-21-2009 01:08 PM

[wwtthhpp]

So should I not call them back to get an address?  They told me they were not going to call.  What happens if they do file the 1099-C or was that probably more of a bluff move to try to get me to pay?

[Anonymous]

Do not call them!  Let them contact you either by phone or mail.

At one time a CA sent out 1099-C to people and the feds hauled them (CAs )  into court. The CAs had to pay hugh fines and intrest on the money that they tried to save on income tax.

If they send you a 1099-C.....complain to the IRS and your state AG office.

[wwtthhpp]

Thank you so much for the information HappyDays.  It has really relieved my mind.

[Anonymous]

You are more then welcome. Good luck.

[Anonymous]

They same dips called me, my family, and anyone that they could think of and told them that I had broken a federal law and that they were coming after me.  I assume it was that they sent in a 1099-c, but I never recieved a dunning letter and dont really know if that is what it was about.  Apparantly, they have gotten into to trouble mentioning someone debt to anyone.  I did look up what is going on with these 1099c, and although I am not a lawyer, I read they can not send a 1099c on a debt that is in disbute, so disbuting is a probably your best bet. If they do send a 1099c try to find your records, because you only need to report the principal--not any fees or interest which also makes a great dispute for the IRS, because they actually have to report what they paid for the debt.

Overall, I think this company is desperate. If they file a 1099c--just dispute the debt with them, the IRS and anyone government wise that will listen.