The issuance of a 1099-C is not required to declare debt as income. 1099-Cs are not issued when the income amount is less than $600 but you are still required to report that. Also, and the IRS knows this, there are many instances where you generate taxable income when the IRS does not know about it. For example, all those class action settlement checks you get are taxable income according to the IRS and you are supposed to report those, even if only a few dollars.
It isn’t clear if California law applies.
Many of the arbitration agreements state that the laws of the state where the OC is incorporated apply, except using the longer SOL of the consumer’s state. Classic have your cake and eat it too.
That being said, you could go ahead and attack the situation using California law, and see if the arbitrator agrees.
If they haven’t produced an affidavit, attack the evidence as hearsay. If they have, demand they produce the affiant as a witness. Make sure to file all sorts of motions and get the arbitrator involved, which has the added benefit of racking up more charges for them.
They haven’t submitted an affidavit? In CA limited civil, CCP 96 would apply to an affidavit and CCP 98 would apply to subpoena an affiant. However, since this is in arbitration, I don’t know if the same rules would apply. Let’s see if @BackFromTheDebthas an idea.