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Well, Chase responded to my 623....


121xgigawatts
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Just got a packet in the mail today. They included every statement from the time I opened the account in 12/2006 up to the point it was closed. They also included the original capture of my application. I have been reviewing the documents they sent and found a discrepancy I wasn't sure I could argue to have the account removed.

 

The account is due to fall off on 2/2017 and they have already filed a 1099 on it. I am applying for a mortgage and was told the UW will likely ask me to pay this account. The chargeoff was $2335.

 

What I found in the statements is my first delinquency occurred on 4/2009 and I showed a past due balance in each of the months after that up to 9/2009. I made small payments over these months, many of which were returned by my bank for lack of funds, plus with the fees and interest the payments did not account for the amount I was behind. My credit file showed late payments on each of these months as well. On my August statement it showed a past due balance of $209 with a minimum payment of $303. I paid $69.00 and the next statement showed I was current. I made some payments over the next couple months to try to keep current (many of these were returned as well), but never enough to account for the past balance due from the 8/2009 statement. I eventually let the card CO in 2/2010.

 

Can I use this as proof I was never current and my actual DOFD was 4/2009 and they should remove? I realize it is a stretch, I am grasping at straws here and the thought of giving them any money as they continue to ruin my credit is nauseating.

 

Thanks in advance

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I was thinking about calling them to discuss the discrepancy in their billing and that I never actually brought the account to current. The only other options I see to try is to ask them to report a 0 balance since they filed a 1099-C and the debt is past the SOL. I know they do not need to report a 0 balance because technically I still owe the debt, but maybe ill get someone feeling generous...

 

The last solution I have is to offer a 25% settlement with either the account being deleted or shown as paid in full. Again, they do not have to do this, but since it is past the SOL they would be giving up easy money.

 

Anyone have any thoughts on these ideas?

 

Thanks

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I decided to send Chase a letter disputing the fact that they are not reporting the correct DOFD based on the statements they supplied. I hope it will work since they reported late payments each month I didn't pay a $300 minimum payment but paid $150, yet they brought the account to current with a $69 payment when the minimum was $303. The payments I made in the following 4 months were all $59, but I never truly caught up to the original $303 prior to when I stopped paying in 2/2010.

 

If this doesn't work I am going to try for a 15% settlement as I have seen some others get.

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  • 3 weeks later...

Chase sent me a letter that I received yesterday thanking me for the information I provided and that I still owe them $2335 but they will be updating the credit bureaus with the new information. What I send was to change the DOFD from 4/2010 to 4/2009. I sincerely doubt they will be making that change since it would delete the record. Has anyone received a letter like this from Chase? Should I call the number they provided on the letter and see what if any changes they plan on making?

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  • 4 weeks later...

Yours sounds almost identical to my case with them. I disputed the balance and sent a copy of the 1099 to both TU an EX (the only ones reporting) and they updated to $0 balance without issue. I'm pretty interested in getting these off still but maybe it wouldn't make a big differences. I'll follow along on your thread, maybe make my own regarding this too.

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I finally got a response from Chase and they said they would update with the credit bureaus. I waited a month and checked, and the only thing they updated was that it was a charge off instead of written off as bad debt. I called to day to talk to someone and they finally put me in touch with their Credit Bureau Specialist department. I explained everything to him and he said I must have entered a payment agreement and that they would not change the DOFD. I gave up and asked to settle the debt so they transferred me to the recovery department. They asked how much I was looking to settle for so I said 15% since the debt is past the SOL, they filed a 1099, and it will fall off in the next 6 months anyway. They said they would not settle for that so I tried 20%, they said no and said they could do $1400, on a $2335 debt! I said there was no way I was paying that and that I had no incentive to pay at all. I gave one last try and said I would do 25% but she said no.

 

I told the lady that if they changed their minds to call me but she said they would never contact me. I thanked her and hung up. I plan on trying again and again hoping I get someone in the right mood on the right day to settle for less. I am getting ready to apply for a mortgage and my mortgage broker suggested I try to resolve this as the underwriter may ask me to pay. I would almost prefer waiting to buy than give Chase a penny...almost unfortunately is the key word there so I just hope I can get a bitter pill I am able to swallow from them.


Yours sounds almost identical to my case with them. I disputed the balance and sent a copy of the 1099 to both TU an EX (the only ones reporting) and they updated to $0 balance without issue. I'm pretty interested in getting these off still but maybe it wouldn't make a big differences. I'll follow along on your thread, maybe make my own regarding this too.

 

The copy worked, I had heard that you should never send since it validates the debt. What box was checked on your 1099?

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Yours sounds almost identical to my case with them. I disputed the balance and sent a copy of the 1099 to both TU an EX (the only ones reporting) and they updated to $0 balance without issue. I'm pretty interested in getting these off still but maybe it wouldn't make a big differences. I'll follow along on your thread, maybe make my own regarding this too.

 

I did the same dispute a year ago on a BofA CO, based on a 1099-C (box G).

TU changed the balance to $0 and deleted the past due amount. (Basically treated it like I paid the CO.)

EX and EQ told me to pound sand. :grin:

 

Box G:

 

A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor's defined policy can be in writing or an established business practice of the creditor. A creditor's established practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy. Enter “G” in box 6 to report this identifiable event.

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Yours sounds almost identical to my case with them. I disputed the balance and sent a copy of the 1099 to both TU an EX (the only ones reporting) and they updated to $0 balance without issue. I'm pretty interested in getting these off still but maybe it wouldn't make a big differences. I'll follow along on your thread, maybe make my own regarding this too.

 

I did the same dispute a year ago on a BofA CO, based on a 1099-C (box G).

TU changed the balance to $0 and deleted the past due amount. (Basically treated it like I paid the CO.)

EX and EQ told me to pound sand. :grin:

 

Box G:

 

A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor's defined policy can be in writing or an established business practice of the creditor. A creditor's established practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy. Enter “G” in box 6 to report this identifiable event.

 

I guess at this point it couldnt hurt to try since I have basically exhausted all other options. Did you dispute online, phone or by mail?

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I disputed by mail, CMRR.

 

Keep in mind that this only worked with TU. It failed for EX and EQ.

 

 

Good luck!

 

====

 

 

 

May xx, 2015

tweak

123 my street

City, ST 12345

DOB: xx-xx-xxxx

SSN: xxx-xx-xxxx

TransUnion Consumer Relations

PO Box 2000

Chester, PA 19022-2000

By Certified Mail, Return Receipt: xxxx xxxx xxxx xxxx

Report File Number: xxxxxxxxxx

RE: Dispute of Bank of America account # xxxx xxxx xxxx xxxx

Dear Sir or Madam,

I am writing to dispute Bank of America account # xxxx xxxx xxxx xxxx. I am requesting that you delete this account from my credit report.

· Bank of America notified me by mail (1099-C, Dec. 31, 2014) of the cancellation of this debt, and that it was discharged (see attached).

· As such, I am not liable for this debt, there is no valid debt, and the listing on my credit report is not accurate information.

· I request that you delete this account from my credit report.

· Upon conclusion of your investigation, please mail me an updated copy of my credit report.

Federal courts have determined that the issuance of a 1099-C is evidence of the discharge of a debt, and that the recipient of a 1099-C is not liable for the debt:

· Amtrust Bank v. Fossett, 223 Ariz. 438, 441, 224 P.3d 935, 938 (Ariz. Ct. App. 2009). Issuance of Form 1099-C after debt was written off is "prima facie evidence" that debt had been discharged by creditor, sufficient to create an issue of fact.

· In re Reed 492 B.R. 261, 269 (Bankr. E.D. Tenn. 2013). The court determined that the issuance of a Form 1099-C reflects that a financial institution has, in accordance with 26 U.S.C. § 6050P and 26 C.F.R. § 1.6050P-1, discharged an indebtedness.

· Franklin Credit Mgmt. Corp. v. Nicholas, 2001Conn. Super. LEXIS 1908 (Conn. Super. Ct. July 12, 2001). “It would be inequitable … to require that [Defendant] report the discharge of debt as income on his federal tax return or face the potential tax consequences and hold that the plaintiff may continue to hold him liable on the debt.”

· In re Crosby, 261 BR 470, 474 (Bankr. Ct. D. Kan. 2001). "The actual (or at least potential) tax consequences of the form make it inequitable to allow the [creditor] to enforce its claims against the debtors."

· Discover Bank v. Shimer, 36 Misc. 3d 1214(A), 1, 957 N.Y.S.2d 263, 263 (N.Y. Dist. Ct. 2012). It is “inequitable to allow [a creditor] to belatedly enforce the alleged debt after it received the tax benefit of the charge-off.”

Please note that the account number on the 1099-C matches the account number on my credit report. The balance reported on my credit report by Bank of America is $5xxx.xx. The Amount of Debt Discharged on the Bank of America 1099-C document in Box 2 is listed as $2xxx.xx, which is the principal amount. Bank of America elected to not report the amount of interest and fees, totaling $2xxx.xx, in Box 3 of the 1099-C IRS form.

Thank you for your assistance with this matter.

Sincerely,

tweak

Attachments:

· Bank of America 1099-C notice of cancellation of debt and discharge.

· Copy of Driver’s License

· Copy of Social Security Card

· Copy of Utility Bill

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Thank you, this is great, hopefully I have greater success than you did, but I would even take just TU right now!

Some success already, Experian updated the balance to N/A and changed status to Closed, Paid. $2335 Written off. Not the best outcome I am sure but not showing the balance was the ultimate goal. Hopefully the others update similarly!

 

 

Sent from my iPhone using Tapatalk

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Thank you, this is great, hopefully I have greater success than you did, but I would even take just TU right now!

Some success already, Experian updated the balance to N/A and changed status to Closed, Paid. $2335 Written off. Not the best outcome I am sure but not showing the balance was the ultimate goal. Hopefully the others update similarly!

 

That should help -- effectively it is now a $0 balance CO.

 

Good luck with the others.

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Thank you, this is great, hopefully I have greater success than you did, but I would even take just TU right now!

Some success already, Experian updated the balance to N/A and changed status to Closed, Paid. $2335 Written off. Not the best outcome I am sure but not showing the balance was the ultimate goal. Hopefully the others update similarly!

 

That should help -- effectively it is now a $0 balance CO.

 

Good luck with the others.

 

I saw a 26 point bump on Experian with the new balance reporting!

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Thank you, this is great, hopefully I have greater success than you did, but I would even take just TU right now!

Some success already, Experian updated the balance to N/A and changed status to Closed, Paid. $2335 Written off. Not the best outcome I am sure but not showing the balance was the ultimate goal. Hopefully the others update similarly!

 

That should help -- effectively it is now a $0 balance CO.

 

Good luck with the others.

 

I saw a 26 point bump on Experian with the new balance reporting!

 

 

Nice.

 

The $0 balance will look better on manual review as well.

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  • 2 weeks later...

I disputed by mail, CMRR.

 

Keep in mind that this only worked with TU. It failed for EX and EQ.

 

 

Good luck!

 

====

 

 

 

May xx, 2015

tweak

123 my street

City, ST 12345

DOB: xx-xx-xxxx

SSN: xxx-xx-xxxx

TransUnion Consumer Relations

PO Box 2000

Chester, PA 19022-2000

By Certified Mail, Return Receipt: xxxx xxxx xxxx xxxx

Report File Number: xxxxxxxxxx

RE: Dispute of Bank of America account # xxxx xxxx xxxx xxxx

Dear Sir or Madam,

I am writing to dispute Bank of America account # xxxx xxxx xxxx xxxx. I am requesting that you delete this account from my credit report.

· Bank of America notified me by mail (1099-C, Dec. 31, 2014) of the cancellation of this debt, and that it was discharged (see attached).

· As such, I am not liable for this debt, there is no valid debt, and the listing on my credit report is not accurate information.

· I request that you delete this account from my credit report.

· Upon conclusion of your investigation, please mail me an updated copy of my credit report.

Federal courts have determined that the issuance of a 1099-C is evidence of the discharge of a debt, and that the recipient of a 1099-C is not liable for the debt:

· Amtrust Bank v. Fossett, 223 Ariz. 438, 441, 224 P.3d 935, 938 (Ariz. Ct. App. 2009). Issuance of Form 1099-C after debt was written off is "prima facie evidence" that debt had been discharged by creditor, sufficient to create an issue of fact.

· In re Reed 492 B.R. 261, 269 (Bankr. E.D. Tenn. 2013). The court determined that the issuance of a Form 1099-C reflects that a financial institution has, in accordance with 26 U.S.C. § 6050P and 26 C.F.R. § 1.6050P-1, discharged an indebtedness.

· Franklin Credit Mgmt. Corp. v. Nicholas, 2001Conn. Super. LEXIS 1908 (Conn. Super. Ct. July 12, 2001). “It would be inequitable … to require that [Defendant] report the discharge of debt as income on his federal tax return or face the potential tax consequences and hold that the plaintiff may continue to hold him liable on the debt.”

· In re Crosby, 261 BR 470, 474 (Bankr. Ct. D. Kan. 2001). "The actual (or at least potential) tax consequences of the form make it inequitable to allow the [creditor] to enforce its claims against the debtors."

· Discover Bank v. Shimer, 36 Misc. 3d 1214(A), 1, 957 N.Y.S.2d 263, 263 (N.Y. Dist. Ct. 2012). It is “inequitable to allow [a creditor] to belatedly enforce the alleged debt after it received the tax benefit of the charge-off.”

Please note that the account number on the 1099-C matches the account number on my credit report. The balance reported on my credit report by Bank of America is $5xxx.xx. The Amount of Debt Discharged on the Bank of America 1099-C document in Box 2 is listed as $2xxx.xx, which is the principal amount. Bank of America elected to not report the amount of interest and fees, totaling $2xxx.xx, in Box 3 of the 1099-C IRS form.

Thank you for your assistance with this matter.

Sincerely,

tweak

Attachments:

· Bank of America 1099-C notice of cancellation of debt and discharge.

· Copy of Driver’s License

· Copy of Social Security Card

· Copy of Utility Bill

Copying into the case law forum with Credos

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  • 1 year later...

I know this thread is old but wanted to update. I have a c/o from Discover from 2013. They issued me a 1099-c December 2017. They have never made contact about the account nor have they attempted to sue me (the account was opened in 1988, last charge was probably last century. I'm sure they didn't sue me becuase they could not produce all the account records if I filed a motion of discovery). As I believe CV said in another thread, life didn't happen I made choices of what to pay attention to - this was one of those choices. I'm not pleased about it, but it was a conscious choice. I did try to negotiate with them after the fact (albeit not agressively - I tried twice) but they would not budge.

 

I used Tweak's letter above and added in a few lines about the revised IRS guidelines (as of 2016 companies are no longer required to send a 1099-c after 36 months of non-payment). I sent letters express mail (2 day with tracking). All were received on 6/13.

 

On 6/14 I received a CK notification of improved account. I checked to see Discover had been changed to no longer showing a balance. I know it's FAKO but my score moved +21 pts

 

Yesterday near 5pm, I received a notification from Experian that my diputes was being investigated. 15 minutes later I received another notification that my dispute was resolved. When I looked at the results that balance was now 0. THis morning I logged into Experian and my FICO 8 score was +21 points.

 

No word yet from Equifax.

 

So in case anyone else is in the same situation, I figured I would add my data point to the pool.

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