1099c from Collection Agency?
Date: Wed, 02/03/2010 - 09:52
I never received a letter from Sears after paying, but it's listed as "Paid in settlement" on my credit report.
Thanks
You might want to check out bud hibbs site on this, in the forum
You might want to check out bud hibbs site on this, in the forums. I think you might have to dispute that with the IRS.
Quote:Originally Posted by AnonymousI settled a Sears debt last
Quote:
Originally Posted by Anonymous I settled a Sears debt last year through a debt program and received a 1099c this year from Resurgent Capital Services. Shouldn't the 1099c come from the original creditor (Sears) and not the collection agency (Resurgent Capital Services)? I never received a letter from Sears after paying, but it's listed as "Paid in settlement" on my credit report. Thanks |
I don't understand the problem here. Resurgent is part of the Sherman/LVNV family of junk debt buyers and collection agencies. If they had your account, it's quite possibly because Sears sold it to them, or to one of their related companies. Who was listed in the paperwork as the 'current holder' of the account? Not the original creditor. It should be in the dunning letter that Resurgent sent you, and in the validation documents, if you requested and got them. Having the 1099-c come from Sears would only make sense if Sears still owns the account.
You may have an argument, depending on your answer to my question above. Meanwhile, the 1099-c should at least serve to keep any other bottomfeeder from pursuing you for that amount.
Thanks for the replies! The dunning letter states: LVNV Fund
Thanks for the replies!
The dunning letter states:
LVNV Funding LLC has purchased the account listed above from Sears. LVNV Funding LLC has placed your account with Resurgent Capital Services, L.P. for collection.
The settlement offer which I accepted reads:
(The letter head(FAX) was from Resurgent Capital Services, L.P.)
Loan Number:xxxxxxxxxxxxx
Previous Loan Number:xxxxxxx
Current Amount Due: $xxxxx
Previous Creditor: Sears
Dear xxx
Your creditor has authorized us to offer you a settlement opportunity on the above referenced account. Upon clearance through the banking system of the settlement amount indicated below, your account will be considered settled.
----------------
I thought only the original creditor could cancel the remaining debt?
That is an argument I brought up a while back. I had researched
That is an argument I brought up a while back. I had researched it and from the wording of the IRS site, it seems that only the original creditor can legally issue a 1099c....but I was never 100% sure and the post never went anywhere. PLEASE call the IRS and ask them! They will be able to tell you definitively and then come back and tell us what they said. :)
Regardless this is why I won't bother to do settlement...because the remainder would just pop back up at tax time to bite me in the butt. Same reason that I wouldn't immediately use SOL as defense in court...only as last ditch effort after I made them prove the debt during Discovery.
