Portfolio Recovery Associates and the dreaded 1099c form
Was contacted by PRA via letter in the mail back at the end of 2010. They didn't really send me a formal letter as such, but rather an "3 options/plans" to settle form. Seeing as this occurred just within weeks of my checking my credit report (which showed no negative items and a score of roughly 725 or so), this is obviously junk debt that is past the SOL. I sent them a C&D letter after that and heard/received nothing until a few weeks ago when I received the popular 1099c form. They are claiming THEY wrote off/canceled a debt of $1,223.10 on 12/24/10. They were never the original creditor of any of my financial accounts. I did have a card that was charged off years ago (2000 or 2001) and I'm assuming this is where they got it from. I was wondering if anyone has gone through the entire situation with this 1099c stuff and could perhaps advise me on what to do next? I want to file my taxes for this year but don't know if I can until this is taken care of? Can I just go ahead with filing for this year? I was under the impression that only the original creditor could issue this form and it would have to be within the tax year that it was written off, not when JDB buys it from the OC and then re-writes it off. What is my next move here? I'd really appreciate anyone's insight into this situation. I feel badly about the debt, but do not want to pay some collection agency who bought it for pennies on the dollar. I appreciate everyone's time and any informative/experienced answers you can give. Thanks!