More information for consumers
If you're receiving one of these, it is in most cases for one of two reasons (my answers are based on the most common form of consumer debt, credit cards--banks may also issue 1099-c forms for mortgages, defaulted student loans, etc.--I have no idea. My post is about credit cards or other debt not related to education or major purchases that require financing):
1.) You have a debt that was never paid, or partially paid, sold to a collection agency who still couldn't collect, etc. Whatever--point is, whoever owns the debt is writing it off as a loss. This is not very common because unless you file for bankruptcy, most collection agencies or banks won't simply "give up" on you. If anything, they'll file for a judgment against you for the debt, interest, collection costs, capitalization fees, etc. It is very unlikely that you're receiving a 1099-C simply because the bank said "ah, lets write this one off." With the problems lenders are having these days, no bank is going to surrender debt as a loss. or,
2.) You had a collection agency or bank hounding you for money. Hopefully you were smart enough to pay them off with a lump sum instead of making payments that merely cover the interest. Anyway, if you were even smarter, you realized that the principal of the original debt (say it was a $5,000 credit card) was like 33% of the amount they were now demanding, and you cut a "deal" to close the case. Well, say it was a $5,000 credit card, they were demanding $13,500, and you gave them $10,000 to call it even. Well, the difference between the "demand" and your "settlement" is considered taxable income by the government. You have to pay income taxes on that $3,500 that you "gained."
Please note--some exceptions do apply--please refer to IRS form 982 (Google it) because there are ways to avoid paying these taxes. Most commonly, if you were insolvent at the time of the settlement (not bankrupt, insolvent) meaning your current liabilities (loans, debts, bills, etc.) outweighed your assets (income, savings/checking accounts, other assets like house, car etc.) you do not have to pay the tax---the theory being that the debt was written off because you couldn't pay. Now if you are making $200k driving a Lamborghini with a beach house and a loft in Manhattan, this would obviously not apply. This is for the people who don't pay off bills, or negotiate settlements for partial payment to close the case, simply because they cant afford to pay off the whole bill.
P.S. -- When you negotiate to settle an account, you can negotiate for whatever additional terms you want (nobody guarantees you will get those terms, or that those terms will be honored, but you can try). Potentially the settlement agreement could recite that the amount the creditor is claiming is doubtful and disputed an as a result no 1099-C form will be issued. You could also negotiate that the creditor will not communicate further with credit reporting agencies about the account for any reason whatsoever (keep in mind that "pay for delete" where they actually take it off is much more difficult to obtain), a result that leaves you in control of the reporting and doesn't alert other creditors that you are "putting out" ... (and you should wait to dispute the account until all other defaulted accounts are settled or past the statute of limitations). Ideally, you would also negotiate for a liquidated damages clause in case they fail to honor their agreement so there would be no argument over what they would have to pay you if you took them to court, but good luck getting that one.
When you pull your credit report you will notice at the very last pages of this report your creditor informaiton. This includes the name if the creditor, address, and phone number.
IT IS NOT ILEGAL FOR ANYONE TO HAVE A DEBT SHOW UP TWICE ON THEIR CREDIT REPORT. THE BEST THING TO DO IS CALL THE CREDITOR OR COLLECTION AGENCY THAT THIS DEBT IS UNDER AND HAVE THEM REMOVE THE EXTRA INFORMATION OFF OF YOUR CREDIT REPORT. ASK THEM TO REPORT IT TO THE BUREAUS IN ORDER FOR THIS TO BE RESOLVED.
Yes. There are no laws stating that any creditor has to report to any more than one credit bureau (and the creditor is allowed to choose which one to report to).
HC on a credit report means High Credit. This is the highest amount of money a creditor has issued to you in the past.
Only the original creditor or the credit bureaus can remove a charge off from a credit report. You can negotiate to have them removed with the original creditor if they will let you. You can also dispute it to the credit bureaus and they will have 30 days to verify the listing or it must be removed from your credit report.
Yes, they can report you for any amount they are owed.
You must pay all of your legitimate debts. A creditor is not required to report a debt to a credit bureau in order to collect the debt you owe.
If this is going through a collection agency you can tell them what you need to verify it was your debt and they have to get it from the original creditor. They have to get you whatever you need to verify it was your debt.
No, it's the same account and the new creditor is simply taking over the same rights as the original creditor.
That will depend on how frequently the credit reports to the credit buearos. Creditors may report monthly, quarterly or intermittently. If they are a relatively small firm, they may not report at all. You might want to ask the creditor when and to whom they report your credit information. Larger companies will have departments who specifically handle customer credit reporting.
Generally speaking, at some point the creditor is not going to spend the money to keep a deragatory on your credit report. In the case of Bankruptcy it stays on you credit report for 10 yeas. In the case of foreclosure it stays on your credit report for 7 years.
An outstanding judgment is a court order that gives a creditor the legal right to collect from a debtor. As court judgments are a matter of public record, a creditor can report the judgment on the debtor's credit reports. An example of a judgment placed on a credit report would be a judgment for eviction. This judgment will remain on the credit report for seven years from the filing date.
== == Call that creditor and request for them to report your information with all three bureaus. Be aware that not all creditors will do this, but it does not hurt to try.
Sumbit a dispute based on inaccurate information and let the credit report agency find them for you.
ANSWER That is correct. If the creditor is not reporting to the major bureaus there is no report... good or bad.
A charge off will stay on your credit report for 7 years unless removed by the original creditor or the credit bureaus. You can dispute a charge off with the credit bureaus and they must verify it with the original creditor with in 30 days or it must be removed from your credit report.
A creditor can report a car as repo and not correct it unless you call them. If it not their responsibility to make sure your credit report is right, it is yours. If you contact them, they must fix it.
Yes, a creditor can remove a charge off from your account and your credit reports. Credit bureaus can also delete charge offs from your credit report if they are disputed and not verified.
Is it for the same account or do you have another account with them?
Sounds like defaulted abbreviated by reporting creditor.
This depends only if the creditor originally reported your account to your credit report.
No only he can pull his credit report but him or a creditor with a permissible purpose, if you do and use his info it is considered fraud.
Need to contact the creditor to find out why they are not posting to the Credit agencies.