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OC sent me a 1099-C for account sold to JDB


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I posted this on the "other" site.  But I would like the opinions of folks here, too.

 

I have just received a 1099-C from an OC (Chase).  The debt is too old to appear on my credit reports, but when it did (for the last couple of years) the OC's trade line was marked as sold to a debt buyer.

I suppose it's possible Chase bought it back from the JDB.  Or maybe Chase's records are messed up?

The reason I suspect the latter might be the case is, a few months ago, I received a letter from them saying they would no longer try to collect on their judgment on this litigation account.  But they don't have a judgment.  They never sued me.  They did retain a local law firm in 2010, which sent a letter and made a few phone calls, but I DVed them and never heard from them again.

Any suggestions on how to handle this?  I could just include it in my tax returns, but given the amount I will probably have to file a Form 982, which I have never done before.   I would rather not file the 982, as I am concerned it might make an IRS audit more likely.

I am also hesitant to contact the OC.  Depending on how Ohio's laws are interpreted, the debt might still be within the SOL.  I subscribe to the "sleeping dog" school of dealing with OCs:  let it lie, leave it alone if they aren't pursuing me.

I could file a complaint with the CFPB, but I'm sure that wouldn't be resolved before April 15.

And then there is the concern that, if Chase is in error here, I could, in the future, receive a 1099-C from a JDB for the same account.

I would appreciate any advice.  Thanks.

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first thing's first--I would recommend against the thought that they did not sue you on this account unless you know for sure.  It's possible that they did sue you and never served you.  They could have sued in a different county also, so you might not have found out that way either.  

 

So, I'm guessing that this could be viewed as a written contract, so the 8 years might apply instead of 6?  Is this a credit card debt?  There's also Ohio's borrowing statute....and that's a tricky one because your courts have disagreed on it.  I did find this:

https://scholar.google.com/scholar_case?case=13200594447099291550&q=credit+card+debt+statute+limitations&hl=en&as_sdt=4,36

Consumer won the appeal, case was reversed and remanded.  This court ruled that a credit card is an open account, and therefore SOL is 6 years.  Your DOFD will be after Ohio's borrowing statute came into effect, so that might apply to you.  This case also involves a Chase credit card, and the written agreement showed a choice of law provision that invoked Delaware law....which means 3 year SOL.

This is a REALLY good case for your situation....

https://scholar.google.com/scholar_case?case=7258086107094497654&q=credit+card+debt+statute+limitations&hl=en&as_sdt=4,222

 

OH Supreme Court, and from 2016....this also involved a Chase credit card.  Now, the FDCPA and OCSPA dont apply to the OC, only to debt collectors.  But while you could not sue Chase under those laws if they did try to sue you now, this case DOES rule that the borrowing statute does apply, thus making the effective SOL for a Chase credit card account 3 years under DE law.  As long as DE was still the choice of law in Chase agreements when you got this card, that would apply to you and the debt should now be time-barred.  

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