Re: Incorrect Info On Restrictive Endorsements

Posted by Why Chat (209.240.222.130) on June 04, 2002 at 23:21:13:

In Reply to: Re: Incorrect Info On Restrictive Endorsements posted by joanne on June 04, 2002 at 22:56:52:

I have tried to explain this before. If you settle a debt for less than is owed, the balance does not dissapear into thin air.An OC is required by banking laws to report any settlement to the IRS and issue a 1099c to the debtor. The "restrictive endorsement" in that case merely guarantees they will live up to the agreement.A ca is NOT bound by the banking laws. They can choose to issue a 1099C,sell the balance to another ca, or, if NOT bound by a restrctive endorsement keep the balance as an open collection on their books.If the account is past the SOL for being sued, I NEVER recomend settling,as all it does is add 7 years potentially to the credit reports,give you taxable income OR a whole new bottom feeding ca to deal with.

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