Need help with Citi Charge Off- Update

[Anonymous]

Good morning community, 

Having trouble with CitiCards regarding a charge off from 2015. Long story short, I received a 1099-c from the IRS after the debt was discharged from CITI for the amount of $3200 in 2017. Currently, applying for a mortgage and the lender asked for either the statements from this charge off account or a full credit profile for this account.  To note, this account first went deliquent in 2013 due to financial hardship and CITI offered a 18month grace period, which did not bring my account current, but only allowed me to not make payments. Fast forward 18 months, I was not able to make the payments and the account charged off.  I attempted to call CITI on multiple occasions to obtain this info but was not successful given the account was either "too old" and under "1099-C" status thus they cant discuss the details of this account. Since 2017, CITI has reported this balance as $0 starting at the discharge date.  I disputed this account multiple times but they updated the account as accurtate. My most recent dispute was last month through CFPB asking them to assist by having CITI update my credit profile to include the full history of this credit card account from 2012- 2015. In return, CITI updated this account with a current balance due of $3200. From my understanding, once an account is discharged and under 1099-C status the consumer is no obligated to pay the full amount. Why would they update this account saying I have a past due amount. As well, my credit card balances now includes this full amount and they will not take a payment for this account.  What should be the next step. FYI, we are set to close on a house next month and this udpate decreased my mortgage scores by 40 points. 

[OmarGB9]

This is why we say don't constantly dispute, as each dispute makes the account seem "fresh" to FICO, dinging your scores. Plus, they eventually take your constant disputing as you being a nuisance and start limiting your ability to dispute (they deem them "frivolous" disputes. I'm not saying they are, I'm just saying that's how it works). I understand your frustration; however, I would've recommend pursuing other avenues before disputing with the bureaus.

These other avenues are still available to you, however. They are: filing a complaint with the CFPB, the BBB, and your state's AG.

Also, I'll ping the expert @RobertEG.

[Anonymous]

Sorry to update, I did dispute the account with CFPB asking them to have CITI to update the full credit profile to the credit bureaus and they updated my credit profile stating the current balance is the charge off amount. 

[OmarGB9]

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@Anonymous wrote:

Sorry to update, I did dispute the account with CFPB asking them to have CITI to update the full credit profile to the credit bureaus and they updated my credit profile stating the current balance is the charge off amount. 

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May be time to consult a lawyer then. I'd still wait and see what RobertEG says. He's extremely knowledgeable about these things.

[Anonymous]

The account is set to be deleted on Dec 3, 2021. IT has been extremely difficult working with them and I have written the credit dispute department and executive department.  This balance was discharged and should be reported as zero, which it has been since 2017. I paid the full amount in taxes after I received the 1099-C in 2018. Just dont understand how and why they reported a balance recently. 

[Anonymous]

So I called the accounts recovery department three times. The first was a young woman who was helpful and she informed me the balance report should be $0. Suddenly the phone disconnected and I do think someone who was listening cancelled the call. The second phone call was with a person who was not helpful. She stated I needed to consult with my tax consultant and they did not have the authroity to comment on this account since it was issued a 1099-C.  I finally called and spoke with another person who placed me on a 15 min hold, she returned and said she spoke with her team the balance will be updated to zero but need to allow 7 to 10 days. Not sure if any one has heard of this before but not sure if I trust them.