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Chase sent letter stating they are ceasing further collections

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Hello,

 

We stopped payment on 2 chase accounts a little over 4 years ago (still within SOL in CO). Over the wekeend I receievd 2 seperate letters from Cahse regarding these accounts stating that they are no longer going to pursue collections. That we will recieve IRS form 1099-C, which I understand. Also that they will continue to report activity to the bureaus.

 

Over the years we have received numeros letters and calls from CA - JDB on behalf of Chase. So I have several questions:

  1. I have never heard of this happening - is this possible? We have been sued by Discover and CRAP1 over much smaller amounts so I am surprised.
  2. It's my understanding that at time of write-off, Chase sold the debt to a JDB and doesn't own it nor the rights to it. Is that not the case?
  3. If this is true, what activity do they report to the bureaus?
  4. Can a CA or JDB still try to collect? I have heard on Dave Ramsey's radio show of people receiving notices from a CA on old debt past SOL or even debt that has been paid.

I appreciate your input. This forum helped us tremendously a year ago when we went to toe-to-toe with CRAP1 in County Court.

 

Thanks!

 

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1.  Chase got smacked by the government for some of their lending practices so they're doing damage control. Rather than sue, they're going the 1099c route.

 

2.  CO or WO does not mean sold.  They might continue to carry the debt on their books.

 

3.  They may continue to report its status.

 

4.  If they do sell it, your reports will show "transferred/sold" and Chase's balance will be $0.  And yes, a JDB could try to collect.

 

The 1099c does not make the debt go away...but, you get to pay taxes on the "found income".

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Thanks for the response willingtocope. If a JDB continues to collect (which I'm sure they will) and if I settle or win in a suit with them can they then again send me a 1099C?

 

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In theory, only the OC can issue a 1099c.  Some JDBs have tried...and I believe the IRS has smacked then for it.

 

But...if you get a 1099c from the OC, pay the taxes.  Then, if you do pay a JDB (which I do not recommend), you can amend your return.

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 Then, if you do pay a JDB (which I do not recommend), you can amend your return.

 In regards to this statement. I assume I'll need to review some other topics to avoid paying the JDB, which I would love to do myself. So far sicne we started this process we have been sued twice and I have some experience with that process, but not paying the JDB would be a new adventure.

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