hiya chalie--

Arrow issued a 1099-C and now THEY claim you owe THEM? That isnt how it works....they are trying to dupe you into paying if thats the case.

A 1099-C is issued only when the debt is written off, as in forgiven. So, if you had a 3,000 dollar debt, and they offered to settle with you for $1000, they would issue a 1099-C for the $2000 that they forgave. They CANNOT then try to collect that money from you at any time, for any reason. The 1099 gives them a tax break on it because they discharged that amount--if they tried to collect on it from you after issuing a 1099-C to the IRS, then they would be guilty of attempting tax fraud, as well as the FDCPA violation. I would definitely make the IRS aware of what is happening if I understand you right....they cannot have it both ways like that!

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