HELLO- question. I am in a debt program EDR. I am on my last collections payment, and am just going to pay it so that I can settle the balance to zero since I am this far in then I will be done with the program. My question is, EDR has faxed over the settlement agreement from Fleet....and then I call fleet to set up the settlement 30% they are asking for it in three monthly installments. WHen I call them should I ask if they would fax me something htat says: Erin will pay one lump sum of (full 30 %) and we will delet the tradeline from the credit report? Is this ever how it works? ALso on the bottome of the setllemetn is the 1099 disclosure, how can i let them know I am not agreeing with the debt, just paying in hopes of deletion? therefore I can at least dispute that 1099 come tax season? any help would be great.....
ALso on the bottome of the setllement is the 1099 disclosure, how can i let them know I am not agreeing with the debt, just paying in hopes of deletion? therefore I can at least dispute that 1099 come tax season? any help would be great..... erinp ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <> There should not be a 1099 in this case as there is no discount or forgiveness of a legitimate debt. Rather than getting a 70% discount on a legit. debt. a gain You are paying 30% of an illegitimate debt a loss. ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <>
Actually, the 1099 C is for "income from cancelled debt" http://www.irs.gov/pub/irs-pdf/f1099c03.pdf The debt was or is going to be "charged off to profit/loss" which releaves them of this income. NOW, that the consumer is sending $$, FLEET HAS to report the income somehow. The 70% is a LOSS. Just tax stuff They are surely NOT going to let you "deny" the debt. They will loose twice. A better alernative is to request the account STATUS is changed to "Paid in Full" with NO negative payment history. LEGALLY, they CANT just delete it. (case cite avail)
Hi Erin, Other than that you may have signed paper work with EDR to "re-affirm" the debt, you can and should ALWAYS refer to same as an "alleged debt". Never, NEVER admit liability, but offer payment strictly to avoid costly and time consuming litigation. The 1099C is supplied for a balance deficiency for which YOU are expected to pay tax. HOWEVER this is predicated upon the validity of the original debt. So, you're right. [Other than what else you may have signed] you should label the debt "alleged" so you can argue the tax liability at tax time. BTW - this does not require anyone else's permission. I DO NOT REALLY OWE THIS - END OF STORY! Do I understand correctly, that you are just now entering into contract with Fleet? Meaning you've signed nothing else before? And prior to entering with EDR have you done anything to question or dispute this? How much is it for? (the 30%) When was the most recent payment date where you missed the payment before defaulting? What state are/were you in? .
Butch, UNITED STATES DISTRICT COURT District of Minnesota ORDER Civil File No. 02-CV-4853 (MJD/JGL) _______________________________________________________ ___ DOMINIC JOSEPH WHARRAM, Plaintiff, vs, CREDIT SERVICES INC., EQUIFAX d/b/a EQUIFAX CREDIT INFORMATION SERVICES, INC., TRANS UNION LLC., EXPERIAN INFORMATION SOLUTIONS, INC., CSC CREDIT SERVICES INC., AND WELLS FARGO BANK, NA. Defendants. Ill have to email the PDF form if u want it, but here is the relevent exerpt: "CSC also argues that Wharram may not complain about information not appearing on his consumer report. The plain language of the statute suggests otherwise. The statute states, â??[w]henever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of information concerning the individual about whom the report relates.â? 15 U.S.C. § 1681e(b) (emphasis added). Deleting the entire tradeline did not assure the maximum possible accuracy of information relating to Wharram because it failed to convey the positive credit history Wharram established with Wells Fargo prior to the instant dispute. Maximum accuracy, under the statute, applies equally to favorable information as it does to unfavorable information."
Whoa there fella. Them are fightin' words. Kiddin ~ Trading payment for deletion of negative entries is not uncommon and probably shouldn't be discouraged. Just by 2.5 cents. 3day
1*Actually, the 1099 C is for "income from cancelled debt" http://www.irs.gov/pub/irs-pdf/f1099c03.pdf 2*NOW, that the consumer is sending $$, FLEET HAS to report the income somehow. 3Why not?*They are surely NOT going to let you "deny" the debt. 4*They will loose twice. 5*LEGALLY, they CANT just delete it. (case cite avail) hiding90 ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <> 1*A 30% payment of a bogus debt is not income to a consumer. 2* Right the 30% paid is income to fleet but the 70% is not income to the consumer. 3*Why not? 4*How? 5*They don't have to report anything to the CRAS
"Trading payment for deletion of negative entries is not uncommon and probably shouldn't be discouraged." -I absolutely agree! -BUT, I subscribe to the theory "hope for the best, PLAN for the worst" I also just realized there was no clear answer to if the Fleet debt is actualy the posters of not? I WOULD AGREE that one should not PAY OR ADMIT to a debt that was not theirs. BUT, I am also aware that a little $ to "clear up" a credit report is a common MISTAKE consumers make. Other than the annoyance of the listing, WHY IS IT SO IMPORTANT TO mess with it NOW? If there were other alternatives, which are more beneficial to the consumer, wouldnt you be interested?
Have you seen this yet Hiding? Seems, according to the FTC, pmt on accounts where the consumer doesn't really owe it is a widespread problem. I did it myself. I paid $200 bucks to be rid of a problem the fast easy way. (Best 200 bux I ever spent) I got 1099'd. When I file I shall attach a letter, and a copy of Bernsteins statement, and tell em to pound sand. If we maitain that the debt isn't valid, we have a chance to avoid taxes when the 1099C arrives. .
YUP, saw it -I didnt mean "Common mistake" to indicate the consumer was right or wrong. Just under a false understanding that payment of a disputed debt is "necessary" -I would agree that "200 bucks" may solve a "10000" problem if the "200" problem went away NOW -BUT in the adverse, "200 bucks" spent to make a claim for "10000$" in violations is good too "If we maitain that the debt isn't valid, we have a chance to avoid taxes when the 1099C arrives. " -True -BUT, ARGUEING the validity or ownership of a debt to the IRS, AFTER IT IS PAID BY YOU, may not be the strongest arguement lol
butch: I entered EDR february of 2002. That is when I stopped paying the Fleet credit card bill. mY balance has raised to $7500.00. I am going to pay them $2757.00 tomorrow. I didn't sign anything with EDR except my application page and my power of attorney letters. I live in CT and am so desperate to get out of debt it is ridiculous. I got 1099 this year from two other settled accoutns. but they sent to statements after 1/31/04, so that is beyond the time limit...correct. WHen I settle withi Fleet via phone tomorrow , can i ask for someone higher up in management....Tell them I will settle for deletion of (-) tradeline and account in full, tell them I am paying to stop the harassing calls and they can either go this route OR I will dispute the account as mine through legal proceedings which I didn't want to do because of time and $$$. If they agree I will let them know I have tape recorded the conversation and will immediatly send a confirmaiton letter (CRRR) stating the facts including teh name of whom I spoke with.... Does this sound like a common thing that could happen? erin
Re: Re: Fleet Collection Letter Does this sound like a common thing that could happen? erin ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <>
Re: Re: Fleet Collection Letter thank you for bumping lbrown. I settled the account this morning with Fleet. I started a successful business two years ago and this is where my debt comes from. I am selling 50% of it and part of that buy =out is htat they pay for my debt. Since I am not paying the $$ directly(selfish I know) I just wanted to settle my charge offs while their is money to do so, and then I will work backwards. I have settled all four accounts. Two of htem are already reporting "paid settled" zero balance. should I wait for the CRA to be reporting the other two "paid settled" zero balance, and then start requesting validation? SHoudl I wait longer in hopes that some of the paper trail will be farther put away? ANy help would be great! Also, what sub prime cards would be good to get, I applied for the DCU one, with AAPD and set up my savings acouunt and was DENIED> Being denied a sub-prime card when I sent the check for 500.00 for hte creidt line is horrifying to me? What can I do? My scores right now are 580. Will "paid settled" and bringing my debt balance down, raise my scores at all? sorry so many questions, just started getting on a tangent.
