cancel
Showing results for 
Search instead for 
Did you mean: 

Cancelled debt via 1099-C affecting UTI. No way to pay debt.

Estimate your FICO® Score range for free

FICO® Score Estimator

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Member

Cancelled debt via 1099-C affecting UTI. No way to pay debt.

Hello,

 

I have a charge off from discover for 955 dollars from 3 years ago. They ended up canceling my debt and sending me a 1099-C. The main issue here is that the balance is still reporting on all 3 Fico scores, brining my credit score down significantly. Even though the debt was canceled I’ve tried calling discover multiple times to see if I can pay them in full so it stops effecting my UTI. They say they can not take any payment on the account because it was canceled and sent to the IRS. 

 

My question is can they legally be allowed to affect my UTI when there is zero possible ways I can make a payment even though I want too? What if anything can I do about this?

 

Thanks 

4 REPLIES 4
Moderator

Re: Cancelled debt via 1099-C affecting UTI. No way to pay debt.


@UCTMN wrote:

Hello,

 

I have a charge off from discover for 955 dollars from 3 years ago. They ended up canceling my debt and sending me a 1099-C. The main issue here is that the balance is still reporting on all 3 Fico scores, brining my credit score down significantly. Even though the debt was canceled I’ve tried calling discover multiple times to see if I can pay them in full so it stops effecting my UTI. They say they can not take any payment on the account because it was canceled and sent to the IRS. 

 

My question is can they legally be allowed to affect my UTI when there is zero possible ways I can make a payment even though I want too? What if anything can I do about this?

 

Thanks 


I suggest a complaint to the CFPB. This is unsettled law some courts have ruled they cannot have it both ways others have said yes they can have it both ways. Welcome to the board Smiley Happy

 

http://www.consumerfinance.gov/complaint/

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 2 of 5
New Member

Re: Cancelled debt via 1099-C affecting UTI. No way to pay debt.

Thanks for the response. Is it worth it to also dipute this with the 3 bureaus ?

Message 3 of 5
Contributor

Re: Cancelled debt via 1099-C affecting UTI. No way to pay debt.

I have the same situation with Discover. I was told I couldn't pay it either, and to dispute with the CRAs, since they issued a 1099-C. Well, I disputed, and it came back verified, **bleep**....I have the $1861 to pay it, and that's what I'd rather do, but.....

 

YMMV, dispute, and let me know what happens

Starting score 6/19 TR 567 Ex 589 EQ 540
7/19 TR 620 EX 595 EQ 577
8/19 TR 643 EQ 614 EX 612
Goal: 680 by 12/19
Message 4 of 5
Moderator

Re: Cancelled debt via 1099-C affecting UTI. No way to pay debt.


@UCTMN wrote:

Thanks for the response. Is it worth it to also dipute this with the 3 bureaus ?


No it will just come back verified.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.