can you advise what happened with this? im in the same boat with gmac :/
@DaBears wrote:
@dzemboc77 wrote:Hey guys,
Rebuilding my credit like many of you on here. This site has been a great help so far. My scores last year were low 500's check yesterday and Fico from walmart is 648, and Quizzle reported 627. Looking to get a house in the spring and I know that I wont be able to get a mortgage with collections. I started setteling out some of my accounts. 1 was close to becoming a real issue as it was near the end of SOL. Setteled with no issues, score didn't seem to change if anything it went up. Got a letter from GMAC probably saw I paided off another account pretty decent deal $500 for a $3k account. I paid it and have reciept for payment and the original offer letter that states
" IF you take advantage of this off you will have no further obligations on the refereneced amount" If the ammount forgiven is greathen $600 blah blah blah 1099-C tax form.
When I checked my credit last night I got a alert that a new item from GMAC was on it. Upon looking into it the balance is now reporting as the total balance - the settlement payment. Say nothing about settled, Status says Unpaid balance reported as a loss by credit grantor. Last payment shows date of my settlement payment. I called them today and they said "We will send you out a letter stating that your account is settled and you have no further obligations". He tried to tell me that it may take time to update on my credit, but it seems to show everything but it is reporting wrong. what should I do ? Should I give it another month see what happens if it fix's or can I dispute it now that it should show $0 balance. How can I pay tax's on their "Loss" but it still gets reported as owing. Please give me your advice.
On a positive note, it updated the day before I pulled my CR so it seems to no have made any differrence but I know for a mortgage they wont like to see a unpaid balance still.
If they sent you a 1099-C the bal should be $0. A copy of the 1099-C is sent to IRS for filing next yr. When you receive the letter stating it was settled mail a copy of that to the CRA's so they can update the TL accordingly.
Not true, the issuance of a 1099-C does not require the creditor to bring a balance to 0, they can in fact report a 1099-C to the IRS and still come after you for any amounts owed (if it was an unsettled open CO). 1099-C does not cancel the debt at all.... the creditor can still report the unpaid amount of the settlement till the CRTP expires as a loss.
