settlement

There may be some truth in what they are telling you, but there is always the chance that the client care person has the wrong account in front of them. If you want to be sure, call them again and ask to speak to a manager or call your credit card company and ask for a complete listing of your outstanding debts. If it has been discharged, then the company will be sending a 1099c to you and to the IRS.

Yes, it's a 1099C and yes those are issued and reported for forgiven debt that exceeds 600, even if below 600 you're still supposed to self report it, however, if you're like most bailing out, you may be insolvent, which means your liabilities (debts) exceed your assets...There are irs publications and tips/worksheets to figure this out...If insolvent, then no tax liability..

Quote:

It is absolutely true that they must report it as settled to the credit bureaus or risk losing reporting status. But, you can negotiate this if you have more than one account with them. Ask to have them apply the first of the settlement dollars to one of the accounts in full (provided the settlement is enough to do so), then the balance to the remaining account. That way they only have to report one account as settled. I have personally had a creditor do this for me and it showed up as one account "paid in full" and the second as "settled". If you have been a good customer in the past they will do this for you as they want you back as soon as your credit/situation improves. Remember "settled" accounts REALLY ding your score plus they show up first in your credit report to potential creditors.