@magicflyer wrote:I had a Citibank credit card charged off mid 2020 for just shy of $10,000. I didn't have any money to pay them up until recently so I just ignored them and eventually they stopped calling (I'm honestly very surprised I wasn't sued). Fast forward the the past couple months, I have been trying to get them to settle but their centralized recovery department keeps reiterating that they have cancelled the debt and may send me a 1099-C and that any payment made would be voluntary. They are updating my report monthly with the chargeoff and it is making it impossible to recover my scores. Is there anything I can do to get them to accept a settlement? Seems silly that they would rather only accept payment in full, or nothing but get to trash my scores for 7 years. I linked an older but similar thread below.
@CreditCuriosity wrote:Appears that they wrote off the debt for tax reasons and likely will report the seven years. Surprised they didnt sue or garnish your wages either and the article you linked basically had a few other scenario as yourself. Guessing as mentioned since they wrote it off they got some tax benefit and you will have to pay some of that on your taxes however that works since receiving that form. Maybe others will be better help here.
if they set the balance to 0, are they allowed to continue reporting the CO monthly? If you pay it to 0, the reporting stops, so why wouldn't it stop if the lender 1099-C's it?
there's no way a lender can just say "welp sorry, here's a 1099-C, nothing you can do now to change our monthly reporting"
they have to allow OP to pay to stop the reporting so that it's accurate don't they?
perhaps this is a HUCA situation, I can't imagine Citi's bank's policy is not to accept payments on a debt or refuse to even entertain settlement offers.
