Bowflex Collection Account

[Anonymous]

Yeah IOBA. I guess that is what I will have to do as far as the settlement. The only problem is they want the money by the 28th of this month and I dont have it to give. I am going to call them and see how this can be worked out. Another question I have is on taking this settlement would I have to do a tax form on the remainder of the balance or not?

[IOBA]

If the "forgiven" balance is less  than $600, there is no tax liability unless the CA sends  a1099 C anyways.   

Anything $600+ does require a 1099-C to be mailed to the person.  It is treated as income.   Not all CA's/OC's send this out, but be prepared to include the figure in your taxes next year.

If you don't have the money from them, then stall.  

Ask them for a letter that specifically states that if you "settle" for x amount that the debt will be considered "paid in full" and that no more money is owed.  Period.   This way, no one can come after you for the unpaid portion.  You can nicely let them know that once you have received that letter, with that verbiage, you will mail in the payment.

[Anonymous]

I contacted Allied Interstate about this old debt and I got a reply from them the other day. This is what the letter stated to me.

We would like to acknowledge receipt of your email and provide you with our assistance.

The account you referenced was already placed in a cease status, you should not be receiving any more phone calls or letters regarding this account coming from our company. Your request was also forwarded to our client.

So does this mean that I do not owe this debt with this company or what? I am just trying to figure out if I am still liable for this debt since it was put in a cease status regarding communication ane letters.

[RobertEG]

Yes, you are still obligated for the debt.  A cease communication letter restricts their active collection practices, but does not have anything to do with the debt itself.

A cease communication letter does not restrict them from initiating legal action.

[Anonymous]

Thanks Robert. The reason I asked is because I sent them a DV letter about the debt and this was their response back to me.