PRA and 1099-C Form

Wow! Thats a new low, even for the bottom feeders! I would think that is a violation, since the debt is unvalidated, but I haven't the foggiest on how you would go about handling this.

I guess the first thing I would do is contact the IRS and tell them the situation, that it is an unvalidated debt, that PRA chose to do this because they could not validate.

This might be a good one for a lawyer...wow I really don't know how I would handle that if I got one!

Yeah. I also read where Asset Acceptance is doing the same thing. :evil:

I would think that you could sue PRA over it, especially if they were DVed in the past and couldn't prove the claim. This smacks of flagrantly ignoring the law and just looking for another way to collect on a bogus debt.

If they were never DVed, I would do it, mentioning that filing a 1099-C on an unproven debt could be defrauding the IRS. Actually, that should be researched! I would think it is defrauding the IRS as well as the consumer, I mean come on, they are basically saying, "Well I say this person owes me. No, I have no proof but will get paid anyway so file with the IRS." But I am sure that someone on the form they file they have to sign under perjury that it is true and correct, but it ISN"T true and correct if the debt is not validated! I would pursue this line aggressively...get the company in trouble with the IRS.....believe me, if that is the case the company has much bigger troubles then dealing with lawsuits from consumers. :)

Yea, I was thinking the same thing. He sent the DV back in September 2006 and never heard back from PRA...until he got the 1099-C in the mail this week.
Looks to me like they are still trying to collect on it..even if it is in the form of a payback from the IRS.

DAMN their souls. If the IRS doesn't get them, somebody else will!

OOPS...sorry for the double post!:oops:
The duplicate post has been removed - Jason

Get ahold of the Infernal Revenue Sadists, post haste. Tell them about it, and see what they say. If the answers are not to your liking, contact the Office of the Taxpayer Advocate [within the IRS] for assistance. You may also benefit from spending some quality time with a tax professional [not the guy at the local HR Block!]

Seeing as how the debt is so old, and chances are the OC already filed the 1099c, I'm thinking tax fraud/evasion.

Ignore the inane ramblings of Nonsense Collector, he is the cheat, not you.

And do what JCEMT said, you should contact the OC and ask them about when it was charged off and if they filed a 1099-c themselves...if you get THAT proof...then PRA is in a whole world of hurt!

Tomorrow I'll call my local IRS office tomorrow and check. Just to find out myself it is proper. That would be the perfect place to ask as they are the experts.

I ARE TROLL- UGH!!

Please don't feed the troll......he's just trying to get a reaction from us.

Hate to tell you this but it is legal to collect on debts that are past the SoL, legal action can not be taken against you when a debt is past the SoL of your residential state.

Good luck in getting this resolved. It's going to be a funky thing if this is to become a trend for very old collection accounts.

True FYI but a C&D if past SOL will pretty much stop them trying to collect. Can't get a judgment and can't contact, that pretty much makes it a debt that cannot be collected.

The 1099 thing is bound to get interesting, I know it's legal but I wonder how it works if someone requested validation but did not receive it.

I don't think the question was about paying it off, but rather, what is the legality of a company doing a 1099-c for an un-validated debt, or on one that the OC may have already filed on.

I am very proactive about our rights, but I don't advocate simply ignoring any debt just because it is uncollectible. However, first, I won????????t pay anything until the debt is validated and if the account is past SOL, I will offer a settlement, like 50% or below. I don????????t see anything wrong with this because they offer these settlements all the time, so why can????????t we?:)

Another question (for CA's that like to pass around and sell debts) how many 1099c's are companies going to file on one debt? Or how many can be filed?

I've contacted by my state AG's office as well as the IRS, I am currently awaiting return calls from both entities.

The verdict is in. The WV Attorney General's office just called me back. In the case of a debt that has been disputed and cannot be proven a 1099c is not a valid option for a CA to file. By filing the 1099c they are saying that yes this is that persons debt and we can prove it is. However if they cannot validate they cannot file the 1099c.

This is from the office of WV Attorney General Darrell McGraw. The deputy AG that I spoke with suggested that the original posters brother file a complaint with the Attorney General for their state or contact the National Associate of Consumer Attorneys to file a civil suit or both.

Good news, indeed! I kinda figured that was how this would play out, but it's nice to hear it from a source with the 'stroke' to make it stick.

Something else that I found out from the deputy AG is that filing with your state AG's office is the best way to get action. FTC logs the complaints but until they see a pattern of misconduct they will not take action. The AG's office is the one that take almost immediate action. First they will attempt to resolve it and if any law has been broken then they will pursue further action.

1099C IS A JOKE FROM portfolio recovery associates.
I HAVE THIS LETTER HERE EITHER.
PORTFOLIO RECOVERY ASSOCIATES SEND THIS LETTER IN 2007
TO ME AND I WAS THINKING WAS A BAD JOKE.

THE LETTER WAS FROM LTD 77074 AND portfolio recovery associates RECEIVED IN 2007 HERE.
FORM 1099C.
"YOU SHOULD CONSULTED INDEPENDENT TAX COUNSEL OF YOUR OWN CHOOSING."
I HAVE NO JOB BECAUSE I HAVE TO TAKE CARE OF MY HUSBAND BLIND AND MENTALLY ILL HERE AND MY FAMILY IS PAYING ALL UTILITIES AND FOOD BILLS HERE.
MY HUSBAND GET ONLY 643,00 A MONTH THAT IS A SOCIAL
SECURITY INCOME AND THIS ACCOUNT FROM 1991 IS NOT
IN HIS NAME AND ONLY IN MY NAME TANIA ALVAREZ.
LTD 77074 AND PORTFOLIO RECOVERY HARASSED A NON DEBTOR HERE(MY HUSBAND)AND TOOK 7 CHECKS OF 150,00
FROM HIS CHECKING ACCOUNT ILLEGALLY.
I THINK THESE BAD COLLECTORS NEED JAIL TIME AND BOTH COMPANIES LTD 77074 AND PORTFOLIO RECOVERY NEEDS
TO BE CLOSED FOREVER.

If they had taken funds from your account without authorization you should dispute with your bank and file a police report.

Submitting electronic checks without authorization from the account holder borders on forgery, and is indeed a type of fraud.

:lol:THANKS JCEMT!!!

No problem Tania.
:)

Quote:

No problem Tabby, if I don't know the answer to a question I have no problem with going to a higher source to find out what the answer is.

The letter has been written and will be mailed and faxed to our State's AG tomorrow.

BTW, I sent Budd Hibbs an e-mail and reported Darrell McGraw's opinion on this matter. He e-mailed me back. He published part of it on the front page of his website under the PRA section.

Way to GO, JCEMT! :mrgreen:

??

My BIL did not receive anything which even comes close to what you have described. Just a 1099-C Form with the "blanks" filled in.

He should be hearing back from our State's AG any day.

Good, if they can't validate then your BIL has no need to file that with his taxes. I wouldn't be surprised if the IRS got involved in this matter to audit previous 1099c's filed by this company.

I just read on 800-Notes where a collector from ECA actually threatened to turn in a 1099-C to the IRS, in addition to having the police serve this consumer with papers if they didn't pay up.

Apparently the 1099-C is now being used as another intimidation tactic by Outlaw CA's (such as ECA & PRA), in the collection of bogus debts.

These...SOB's. :evil: I cannot WAIT to hear what our State AG has to say about this!

How can you sue for the balance of the debt and claim it as a loss at the same time :?: :?: :?:

They can't...and they KNOW

My BIL received a letter in the mail from our State's AG's office today. They stated they had forwarded his complaint regarding the 1099-C to the FTC and were not
going to take any action of their own against PRAA.

It's very apparent, then, that the prosecution of abusive debt collectors (such as PRAA and the like), is not a priority by my State's elected officials. In summary, this Official cannot
ever expect me to vote for him again! :evil:

It may be beyond their jurisdiction. When it comes to something such as deceptive trade practices regarding taxes it would probably be handled more on a federal level. The FTC will probably be working with or transferring it the IRS as well.

REPORT portfolio recovery associates SCAM FORM 1099-C HERE EITHER.
THANKS GREAT MEMBERS OF THIS FORUM FOR HELP US.
http://www.whocalled.us/lookup/8007721413

I HOPE IRS DO SOMETHING ABOUT PORTFOLIO RECOVERY
ASSOCIATES AND OTHER BAD COLLECTIONS LIKE PORTOFOLIO RECOVERY ASSOCIATES(LTD 77074 FOR EXAMPLE)FOR ILLEGAL USE OF THE 1099-C FORM FROM IRS TO INTIMIDATE CONSUMERS.

ABOUT portfolio recovery associates...

:o My daughter got a notice from Portfolio Recovery from an old debt dating back to 1997, which was paid but very, very late. It doesn't show on her credit report as she just bought a house.
They are trying to collect a lot of money from her...

portfolio recovery associates(THE CLIENT OF
LTD 77074 (ANOTHER BAD COLLECTION AGENCY) CHARGED A FEE OF 1000,OO TO MY HUSBAND BLIND AND MENTALLY ILL FROM AN ACCOUNT OF 1991 NOT IN HIS NAME.
PORTFOLIO RECOVERY ASSOCIATES AND LTD 77074 BAD DEBT
COLLECTORS TOLD MY HUSBAND THEIR FEE WAS 1000,00!!!
MY HUSBAND WAS ROBBED FROM THIS 2 PARTNERS FROM HELL of 1050,00(7 checks of 150,00 from his Social Security Disability.
ANOTHER MISTAKE WAS 1099-C FORM...

portfolio recovery associates IS ANOTHER VERY BIG BAD COLLECTION AGENCY.

If portfolio never sends you a statement or bill, and telephones you on a weekly basis, can they send a 1099c for an old debt from 1999?

AN old debit from 1991.
Form 1099-c?
They send me a letter here (PORTFOLIO RECOVERY)and i have this letter with me.
It is an old bill from 1991 natwest from New York and i live in Miami for 12 years almost 13 years.
I do not lie.
GOD IS MY WITNESS AND I HAVE ALL PAPERS HERE EITHER.

TABBY THESE PEOPLE FROM PORTFOLIO RECOVERY DID THE
SAME WITH ME.
1099-C FORM AND 1991 OLD ACCOUNT NOT IN MY CREDIT REPORT AND NOT IN THE CREDIT REPORT OF MY HUSBAND
BLIND AND MENTALLY ILL EITHER.
MY POOR HUSBAND LOST MORE THAN A 1000,00 DOLLARS
BECAUSE THESE PORTFOLIO RECOVERY AND LTD 77074.THESE COLLECTORS TOLD HIM ONLY LIES AND HARASSED HIM MANY TIMES A DAY AND NIGHT HERE.
IF THESE PEOPLE HARASSED UNTIL CHILDREN.
I DO NOT FORGIVE THEM.

I DIDNT LOOK THE DATES BUT I'M ANGRY WITH BAD PEOPLE
ALWAYS.GOD IS WATCHING WHAT THE BAD PEOPLE IS DOING AGAINST ALL GOOD PEOPLE IN THIS WORLD.

I've heard about portfolio recovery associates (and how bad they are/can be) but also have heard of a agency/business called Calvary Portfolio Services LLC.

Apart from both "companies" containing the word Portfolio and "LLC" are they one in the same,different,what?

They are 2 unrelated companies

In researching this issue it seems to me to be a rip-off of the IRS. The OC has already written of the debt for face and then the PRA buys it for pennies on the dollar and writes-off the face again! How many times can the same debt be written off?

**UPDATE**

My BIL received a bill for back taxes from the IRS in September, based on PRA's charge-off of this debt which had long since been disputed.

He immediately challenged the IRS's (and PRA's claim), submitting copies of the original DV letter with correspondence sent to and received from the FTC and our State's AG's office. The IRS wrote back, stating they had requested "additional documentation" from PRA which was due within 60 days and would render a decision when it was received.

Well, PRA has hung themselves. They did not respond to the IRS's request for documents and DEFAULTED. As a result, the 1099-C has been INVALIDATED and my BIL owes NO TAXES!

My guess is that PRA never had the documentation to support the 1099-C they submitted to the IRS to BEGIN with.

One can only wonder just HOW many of these they are sending to the IRS....

**IF YOU RECEIVE A 1099-C AT TAX TIME ON A TIME-BARRED, DISPUTED AND UNVALIDATED DEBT FROM PRA, REPORT IT TO THE IRS IMMEDIATELY!!**