About 2 years ago I disputed an account from plains commerce bank that was sold to another company as not mine with the credit bureaus. It was removed from all 3 of my credit reports back then. I received a letter from a collection agency in May listing plains commerce bank as the account holder, so apparently the account was sold back to Plains Commerce Bank. I immediately sent a validation letter to dispute the debt and asked for proof. Yesterday, I received a letter that stated they are going to report the balance to the IRS as income on Form 1099-C and that I could be required to pay interest and penalties. They have not responded to my validation letter. I'm not sure what my next course of action should be. I also wanted to know if they could do this without validating the debt and from what date would interest and penalties be accessed. Any help would be appreciated. Thanks
Hi LL, Do you still have the documents from when you disputed 2 yrs ago? And copies of your CR's where it was absent? And ... about how much are we talkin here? : )
Yes, I still have copies of everything from all the disputes I have done. I have the letters that I wrote and the results from the Credit Bureaus and I also have copies of credit reports that show when it was reported before the disputes and the ones later when it was deleted after I disputed. The amount is around $1500. Thanks for your help.
Hi I just wanted to know if anyone has any advice for what I should do next, since I have all my documentation.
I have sent a debt validation letter to the collection company. It did have the thirty day clause if you do not dispute it will become valid. They have not responded and are still reporting on my Credit Reports. I have my records when I disputed with the Credit Bureau as not mine and it was removed about 2 years ago. I want to send a second letter, but does anyone think I should mention the dispute from the Credit Bureau two years ago in the second validation letter? Also, should i dispute with Credit Bureau before or after the second validation letter?
Do you have confirmation (green card, or USPS on-line confirmation) that they have received your dispute and validation request?
"Yesterday, I received a letter that stated they are going to report the balance to the IRS as income on Form 1099-C and that I could be required to pay interest and penalties. They have not responded to my validation letter. " Since you had disputed and requested validation, they could have waited until they had sent validation. You can take their letter as an attempt to twist the IRS's recent requirement to report unpaid charged off-debts into another collection pressure tactic. One of the CA industry's trade groups filed suit against the Treasury Department recently over this new requirement. Their concern was that they would have to send 1099s on debts that they had not been able to validate, which might be a violation of FDCPA for misrepresenting the legal status of a debt. They were also concerned that sending out 1099s might indicate that the debt was forgiven, and that they could no longer collect. I will try to find it, since if I remember right, the judge's reasoning was so divorced from the current reality of the debt collection industry I was not sure whether he was naive, or sarcasticly throwing their own mess back at them.
I did send it certified, but misplaced my tracking info to track it online. I know it is somewhere in my house. I will find it eventually, but when I send my second letter, I will definitely put the tracking information in a safe place.
