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a variation on the PRA/1099 theme


ZRX1100
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I searched the archives, but didn't see anything that addressed these somewhat peculiar specifics, so -- stated as briefly as possible:

15 years ago I defaulted on some debt while going through business failure and the related divorce and loss of home. Last year I got a collection call from Portfolio Recovery Assoc. seeking $25k for a credit card balance from back then, which was not only way past the SOL but ridiculously more than the original amount (although it's been too long now for me to recall the exact figure; but if I still had those records, most if not all the original amount could be documented as legitimately deductible business expenses).

I immediately sent PRA a C&D letter, and heard nothing further until getting a 1099C from them in January for the $25k. Line 3 for interest was blank, and "NO" checked under line 5 for "personally liable." Our accountant didn't include it as income on our 2010 return, as IRS docs state clearly that cancelled debt is not income if you weren't personally liable.

The return went through with no hitches (so far). But in late July I received a "corrected" 1099C from PRA, with line 5 now marked "yes."

Any suggestions on what, if anything, to do next?

Edited by ZRX1100
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I got a dunning letter from PRA trying to collect on a fraudulent acct. I sent a DV letter, never heard anything back. Then a couple weeks ago I checked my credit report and they started reporting. I sent them another letter as an intent for legal action. Never heard anything back.

I am disputing it with the CRAs and hopefully the CRAs will delete the tradeline. IF not and the account is not marked as "In Dispute". PRA will try to tell the CRAs that my dispute is verified. Then its time to sue.

Just sue them through arbitration and force them to foot the bill. File a complaint with your states Attorney General's office. They will investigate and give them all the docs that you have.

Edited by bmc100
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When you sue and win, your name goes on a national registry that debt collectors check. Once they see your name, they think twice about screwing with you.

It might seem like a nice list. But I see a slippery slope. Eventually DBs will refuse to buy accounts where the named debtor is on that list. Eventually after that, OCs will use that information to deny credit to people named on that list as higher risk.

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It might seem like a nice list. But I see a slippery slope. Eventually DBs will refuse to buy accounts where the named debtor is on that list. Eventually after that, OCs will use that information to deny credit to people named on that list as higher risk.

I like to take risks, so I will take my chances. I would rather be on that list, then to let some scumbag company break the law and infringe on my rights.

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I like to take risks, so I will take my chances. I would rather be on that list, then to let some scumbag company break the law and infringe on my rights.

It's just a concern where this could go. But I am also apparently on the list, as suddenly all collection calls just up and quit when I defeated one in court. Now my phone only has telemarketers and scammers calling (yeah it's on the DNCL, but that doesn't seem to matter to BPOs in India).

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It is funny that they call it a Deadbeat list when you sue them for breaking the law. Can we hold a Deadbeat list of all financial institutions that take advantage of us, then not do business with them. The general population is too brain washed to not do business with the crooked companies. They think it is safe to put their money with them, but then get feed to death.

What is really funny is when these companies are sued for millions or billions when they are caught for wrong doing...

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Yes, like PRA who is trying to collect on a fraudulent account that they bought, never responded to any of my written correspondences. A rep hung up on me when I asked to speak to her compliance manager or legal department. Then they decided to report to the CRAs after I disputed the account with them.

OR Atlantic Credit who bought another fraudulent account...yes I had ID theft. They never sent a letter stating they bought the debt, then stuck a CA on me to collect. I spoke to the CA and tape recorded all conversations. They denied sending me anything in written form, so I negotiated a payoff. They emailed me the settlement and thats when I found out that the account was sold to Atlantic. The CA was telling me they were representing the OC....I filed a lawsuit against them last week.

Yes Scumbag Companies who break the law...

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Yes, like PRA who is trying to collect on a fraudulent account that they bought, never responded to any of my written correspondences. A rep hung up on me when I asked to speak to her compliance manager or legal department. Then they decided to report to the CRAs after I disputed the account with them.

OR Atlantic Credit who bought another fraudulent account...yes I had ID theft. They never sent a letter stating they bought the debt, then stuck a CA on me to collect. I spoke to the CA and tape recorded all conversations. They denied sending me anything in written form, so I negotiated a payoff. They emailed me the settlement and thats when I found out that the account was sold to Atlantic. The CA was telling me they were representing the OC....I filed a lawsuit against them last week.

Yes Scumbag Companies who break the law...

Hanging up on you isn't breaking the law. Collection agencies don't report to the credit bureau, only the original creditor can do that. If they in fact sent you something in written form then denied that, there's an easy remedy. If this account was the result of id theft, there are remedies for that. Why would you settle in that instance? If you're going to make such sweeping statements, at least plug the holes in your story.

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Hanging up on you isn't breaking the law. Collection agencies don't report to the credit bureau, only the original creditor can do that. If they in fact sent you something in written form then denied that, there's an easy remedy. If this account was the result of id theft, there are remedies for that. Why would you settle in that instance? If you're going to make such sweeping statements, at least plug the holes in your story.

I do not who you are, but you must work for a CA or JDB. One, I do not disclose all information that is filed in a lawsuit. Two, I did not settle, the suits are still in court. Three, yes CAs do report to the CRAs as do JDBs. Four, PRA or Atlantic Credit never sent me anything in writing nor responded to my disputes.

If you read the FDCPA, a after the first contact is to send a written response stating who they are, the amount of the debt, and who they are representing...etc. Then the consumer has 30 days to dispute in writing. Then, collection activity cannot continue until they validate the debt. Which they did not.

The FCRA states that if you dispute an account, they have to mark their tradeline as "In Dispute"...which they did not do. I can continue on and fill in all of the holes, but I would rather not.

After the CA received my dispute, they never responded and continued collection activity by reporting to the CRAs..

I should have just ignored your post.

Edited by bmc100
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I do not who you are, but you must work for a CA or JDB. One, I do not disclose all information that is filed in a lawsuit. Two, I did not settle, the suits are still in court. Three, yes CAs do report to the CRAs as do JDBs. Four, PRA or Atlantic Credit never sent me anything in writing nor responded to my disputes.

If you read the FDCPA, a after the first contact is to send a written response stating who they are, the amount of the debt, and who they are representing...etc. Then the consumer has 30 days to dispute in writing. Then, collection activity cannot continue until they validate the debt. Which they did not.

The FCRA states that if you dispute an account, they have to mark their tradeline as "In Dispute"...which they did not do. I can continue on and fill in all of the holes, but I would rather not.

After the CA received my dispute, they never responded and continued collection activity by reporting to the CRAs..

I should have just ignored your post.

Well you sound like a real expert. You don't need anyone's help then. Why don't you pay your bills instead of finding technicalities to dodge your creditors?

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I do, but these were accounts that were from ID theft. I do have an attorney that is handling these accounts for me. Oh, I have been on SSN disability for the last three years due to an debilitating auto-immune disorder and have not been able to work. My medical bills are quite a bit more than SSN disability benefits and I still pay my bills. Before I was diagnosed with this auto-immune disorder, I was making $200k a year. Why dont you check yourself...fool.

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I do, but these were accounts that were from ID theft. I do have an attorney that is handling these accounts for me. Oh, I have been on SSN disability for the last three years due to an debilitating auto-immune disorder and have not been able to work. My medical bills are quite a bit more than SSN disability benefits and I still pay my bills. Before I was diagnosed with this auto-immune disorder, I was making $200k a year. Why dont you check yourself...fool.

Hey, I'm just trying to help you. In the original post of yours I responded to you made some statements you are now contradicting. Just pointing out..

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