Bank of America reporting balance after 1099c

[Anonymous]

Robert,

Would you file a civil complaint with the credit bureas or with BofA?  Would I need an attorney to do this?

Thanks,

Elizabeth

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@RobertEGwrote:

The controversy over whether or not a 1099c totally cancels all debt, or whether it is sometimes only sent as an admin requirment of the IRS with no intent to cancel the debt, can be resolved by the courts provided you file a civil action and raise the issue with the courts.

The CFPB to date has been dodging the issue, as this controvery has extended for years, and they are yet to weigh in.

I would file a civil complaint for lack of reasonable investigation of your dispute, and get a binding legal determination from the court.

Until then, interpretations will persist.

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[RobertEG]

The creditor is refusing to update your credit report.

You can, after filing a dispute and getting their verification of accuracy, contest the reasonableness of that investigation of your dispute by bringing your own civil action against the creditor.  See FCRA 623(c).

The asserted violation would be against the creditor.

They are asserting no requirment to update base on interpretation of whether there is still an outstanding debt.

The legal court determination of that issue will then determine whether they are requried to update.

[Anonymous]

You should absolutely call a lawyer if you haven't already.  (I haven't read the entire thread yet.)  I work with an attorney in Louisville, KY and we have sued Chase, BofA and several others for reporting a balance after issuing a 1099C.  See Baker v. American Financial Services, Case No. 3:16-CV-00065-GNS

This was one of the cases he brought and an opinion.  

[cyrusvalentino]

I addressed this in another of my posts that there has brought clarity on this per an IRS bulletin.

“If you were issued a 1099C after November 10th, 2016 this is not required, many businesses state it is under the old 36 month rule. Which was rescinded under the following bulletin. The purpose of rescinding the 36 month requirement was to make clear the issuance of a 1099C is in fact the discharge of debt and eliminate the confusion many of us have faced.

https://www.irs.gov/irb/2016-48_IRB#TD-9793
“

[Anonymous]

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@Anonymous wrote:

Was going to reply to a similar thread on this subject but it appears to be closed.

Got a 1099c from BofA last year, which I reported on my taxes and paid the liability accordingly. Recently pulled CR’s and discovered that they are still reporting balance. I know this is a gray area as has been mentioned in other threads, but I am hoping there may be new informaton out there that can be shared. Per a suggestion on another thread, I filed a complaint via CFPB for BofA and the 3 bureaus to address the situation (and gave them a copy of the 1099c as evidence). Experian was the first to come back stating that the balance would be updated to $0. Have not heard back from EF and TU yet. True to form, BofA called me and said that they will not only not update balance to $0, but also will not stop reporting it with the balance. Without sounding like I’m “crying in my beer” as it were, it’s not fair that they can report a debt that has been canceled when filing the 1099c is considered affirmation of the cancellation. To me they are essentially “getting & eating their cake”.

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I have had this problem for almost a year now.  They are still reporting a small balance.  I was able to get it removed from my TU but the others won't budge and drop it to $0.  It should drop of in a few months so at this point I don't know if I really care anymore.  I am not planning to buy anything big or apply for credit so at this point I might as well just let it sit there.