Home
Public Forum
Credit Reports
Apply For Cards
Credit Directory
Credit Overview
Credit Problems
Credit News
International
Credit Glossary
Purchase Books
Credit Laws
Business Credit
Merchant Accts
   

Re: Original Creditor Threat..........Seek Opinion.


[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]

Posted by LadynRed (199.91.33.254) on February 12, 2003 at 09:33:19:

In Reply to: Original Creditor Threat..........Seek Opinion. posted by Unsure on February 12, 2003 at 09:21:37:

Violations of what ? Original creditors are NOT bound by the FDCPA, unfortunately.

First, at only 90 days past due, they are unlikely to sue you, they just want the account brought current, which is what Option 1 is all about. The 'time limit' is probably bogus.

By law, they have to charge-off a non-paying account at 180 days of non-payment. They can write it off sooner, and some do, but most will charge it off (getting a tax break for it !) and then assign or sell it to a 3rd party collection agenc who IS bound by the FDCPA. Its unlikely that they'll sue you before charge-off because up until that time, they have some hope of getting paid.

As for the 'litigation and 1099' - its bullcrap. This 1099-C stuff is coming up a LOT lately. You will NOT get a 1099-C for a charged-off debt OR for 'litigation' unless you SETTLE with them. Once you settle, any amount over $600 is considered income 'cancellation of debt income' and a 1099-C is issued which you include as income on your taxes. Just suing you doesn't generate a 1099-C, you'd have to settle first. That may be what they're alluding, assuming they will win a settlement if they sue you.

This wouldn't be Discover would it ? They are quick to sue, and for any amount.


Follow Ups:



Post a Followup

Name:
E-Mail:

Subject:

Comments:

Optional Link URL:
Link Title:


[ Follow Ups ]   [ Post Followup ]   [ Credit Forum Index ]

 

    Top Of Page

  

Copyright © 1999-2002 Enkephalos Web Design