Charge Off

[Anonymous]

I have a charge off that I did'nt know I owed.  It is for $60.  I never received a piece of mail, phone call, nothing .  I tried pleading with them to remove it (paid in full once I realiezed I had a balance on my credit report) and they wont budge.  Can I request a 1099 C?  How does that work?  How can I dispute a paid charge off with a 1099 C?

[Anonymous]

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@Anonymous wrote:

I have a charge off that I did'nt know I owed.  It is for $60.  I never received a piece of mail, phone call, nothing .  I tried pleading with them to remove it (paid in full once I realized I had a balance on my credit report) and they wont budge.  Can I request a 1099 C?  How does that work?  How can I dispute a paid charge off with a 1099 C?

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A 1099-C is issued when a lender cancels debt exceeding $600.  As your debt from the CA is only $60 you would not receive one.  It is not practical to dispute a debt that you owe as it will come back verified and this will negatively impact your scores in the end.  Even though the CA will not remove the account, if it is updating monthly, then this will negatively impact your score.  If the debt is not yours, then utilizing the dispute process would be appropriate.  If it were me, I would pay off the debt, and move forward.

From my own experience, I have been able to get approvals with COs and paid collections on my credit reports. 

[RobertEG]

A charge-off is an internal accounting measure that moves a delinquent debt from their accounting ledger from an account receivable (asset) to a bad debt (liability), thus decreasing their statement of net assets.

It does NOT remove any continued liability of the consumer for the entire debt.

Stated differently, it does not cancel any of the debt.

A form 1099c is sent when a consumer decides to cancel a portion or all of the debt, such as when they accept a settlement for less than the full debt.

It is not sent for every charge-off.

You dont appear to have a situation where a 1099c applies.

Dispute of a charge-off would be based on some showing that a charge-off either was not taken or that there was not debt in fact, and thus any charge-off against a non-existing debt would be inaccurate.