First, I thank you for reading this post.
I currently have 2 "Charged Off" Credit Cards in collection. My most recent Credit Report states that 2 of my credit cards are in collection but are charged off from original creditor and sold to collection. Last activity on both of the cards is June 2009. Also, I already have sent DV letters to 2 collectors and it's been about 60 days and no REPLIES. Now I'm getting ready to send them dispute letter to Collector and Credit Report Company.
However, as I was looking at CR, I found out 2 of my credit card balance were "Charged Off" and sold to collection. In this case, do I have to pay tax for charged off amount? It's not fair if I'm taxed on charged off accoutn since the account is not settled.
Further, the other credit card account, before it got sold off to colletor, I've settled the balance and is paid but shows on CR as charged-off stats and shows "paid and closed" on activity discription. What happens in this case? Should I contact CR to fix this entree?
Thank you in advance.
Advice
Realize this about chargeoffs, when it is sold, the buyer becomes a creditor. The chargeoff is then marked in the credit bureau. When you settle with the CA post chargeoff, they zero out the original & theirs, but both stay on your report. As the tax goes, no you will not be taxed, since it was sold, if you settle for less than owed with the CA then you may have to pay if they send a 1099c.
do you have all your credit reports?
what state are you in?
what is the original creditor and the name of the CA?
what is the date of first delinquency? 30 days after last payment.
accurate reporting is relative. charged off, paid and closed may be one way of looking at it. but you can dispute it.
So if you reduced the amount owed by over $650 in your settlement, then they may send a 1099c. however they often forget. It will come next Jan if at all.
When you settle with the CA post chargeoff, they zero out the original & theirs, but both stay on your report.
How long is it gonna stay in the CR?
the longest is 7.5 years but if you tell us more I can make suggestions that have worked for me in the past
do you have all your credit reports?
what state are you in?
what is the original creditor and the name of the CA?
what is the date of first delinquency? 30 days after last payment.
cinnamngrl, I'm being a bit curious to know why you need the name of the OP's creditor and CA? Does it really have anything to do with your experience? It's interesting and I'll wait for your response!
this information will help me make suggestions specific to your case. The state will determine the statue of limitations for this debt. knowing the name of the OC original creditor, will help show if there is a specific govt regulating agency that can help so rt out the truth. Knowing the exact dates is very important too.
Aaron, I cleaned up my credit almost entirely by filing complaints. I would send the OCC, or Federal reserve copies of all my green cards and the tradeline owner would send me a snotty letter saying well we're right and you're wrong but we will delete this as a one time special prize courtesy because we are full of good will.
Also, Aaron I have been a little frustrated with all the spam lately. do you think that there is any way CM would give you or me some moderating powers? I have sent a PM, but no respones. I would love to be able to zap some that crud out of the way.