help! so confused!

Discussion in 'Credit Talk' started by jesssssss, Jul 2, 2013.

  1. jesssssss

    jesssssss New Member

    I had a dirtbike financed through Yamaha (HSBC) which was recently charged off. I am aware this is very very bad, and not looking for any negative comments. I charged up a lot of debt when I was younger,and recently paid most of it off. I contacted the finance company in hopes of setting up some sort of settlement to repay the debt, but they refused since I was sent a 1099c and the debt was reported to the IRS as income. They also refuse to remove the lien on the title of the bike. I have spoken with over 12 people within the finance company and they have all told me, "you physically own the bike, but you do not own the title." How is this possible? I would love to sell the bike, or just get rid of it, but they pretty much said I'm out of luck, and they will never release the title. From what I have read online, the only way I would be able to obtain the title would be to arrange payments with the lender, but they refuse to do this. Any advice?
  2. Kameleon

    Kameleon Well-Known Member

    I'm no expert in this matter but someone will respond i'm sure:

    First: You should not find negative comment on here. "let he who cast the first stone be without sin" as it's said right. We've all been their in one way or another so don't worry about that.

    Share and i'm sure someone will answer.

    I get the fact that finance people logically think that if the company 1099c'd that they no longer have rights to your property because the debt is written off and becomes a tax write off to HSBC...

    But, If that were the case i would be rich buying cars and houses, never making a payment then selling it keeping the money... what the heck would i need a credit score for if i could do this then declare bankruptcy every 10 years and start over with a clean slate...

    Liens are just part of the system of checks and balances. Trying to sell the bike now, netting you a profit with no obligation to pay HSBC is exactly why there is a lien on the bike.

    My question for you would be. Have you asked them (HSBC) directly what they want you to do / what CAN be done to lift the lien? and not just a customer service rep, their legal department, or someone higher up.

    Now that it is charged off i do not think you will be able to turn the bike into HSBC as partial payment. Can/will the lien transfer to the Debt Collector? Would paying them off release the lien? Do you know who the new Collector is? Have you spoken/written the the debt collector at all? (i personally would refrain from telephone calls)

    All in all i think you MUST find out who is the actual lien holder (HSBC and or a new CA) Verify, triple verify with DMV or whoever in you state. THIS IS THE PERSON TO DEAL WITH. Who ever is the lien hold MUST tell you the steps to remove the lien, each state law is different but specific about this. Arm yourself with the info specific to YOUR State.

    If HSBC won't take payment but are the lien holder ask if you would get an agreement that paying of the new creditor will get the lien released. Get EVERYTHING in writing, when you pay it off get a notarized statement declaring the lien release, go to the DMV file the forms attach the proof needed and get your new title.

    Are you upside down on the bike (no pun intended)
    What state are you in?
    Maybe someone will know a loophole of getting the lien off without paying so hang in there!
  3. jam237

    jam237 Well-Known Member

    The 1099(c) extinguishes the debt, they've claimed and received the full amount of credit that they can from the IRS, and the IRS is treating that amount as INCOME on your tax return when you file it.

    I would tell them if they don't give me the title, then I will report them to the IRS for filing false tax forms, and I will sue them for violating the state's consumer protection laws, and the FTC Act.

    There is no-one to pay when the debt has been reduced to a 1099(c). Or else a 1099(c) would never be a final matter, and another company could come along to try to collect the money that you've already paid taxes on; and you could end up with multiple 1099(c)'s from every company that comes along thereafter.
  4. jam237

    jam237 Well-Known Member

    Instructions for Forms 1099-A and 1099-C (2012)
    The existence of the lien proves unequivocally that the debt was not canceled, therefore the 1099(c) is false.
  5. Kameleon

    Kameleon Well-Known Member

    And there you have it! oh jam what would we do without you!
    Perfect answer if the OC is the actual currently listed as the lien holder. You need to verify this not take their word for it. get proof through the DMV etc. and go after the OC as Jam suggest if they are the lien holder...

    However we all know of CA's that end up placing liens...
    They are not the OC, sometimes they are just "assigned" or and some are judgement cases won without the debtor knowing (sewer service).

    Jam I can see your point that a particular initial loan is technically paid for through the 1099c, but couldn't the OC's initial lien be transferred to the CA, let say prior to the 1099c? as part of assignment or transfer when they wrote off the account. That could explain why the OC can't "do anything" about it.

    This is why i thought it would be best to triple verify who is 100% the actual lien holder on file. If the CA is allow to place a lien either through some weird transfer or judgement in which jesssss was not notified, there may be another way to play this.
  6. jam237

    jam237 Well-Known Member

    But the lien by IRS rules is continued collection activity, which means that collection activity wasn't discontinued; the requirement for the 1099(c)

Share This Page