[Bud Hibbs]

Here we go again; Portfolio Recovery Associates is flooding mailboxes with bogus 1099-C’s claiming they suffered losses on bottom feeder debts they purchased for pennies.

The IRS has a publication that is required reading for anyone being scammed by PRA.

It is IRS Publication 4681 (available online) and Chapter 3 states the following:

Introduction
This publication explains the federal tax treatment
Of canceled debts, foreclosures, repossessions,
and abandonments.

Generally, if you owe a debt to someone else
In addition, they cancel or forgive that debt, you are
treated for income tax purposes as having income
and may have to pay tax on this income.
This publication refers to debt that is canceled or
forgiven as “canceled debt.” However, under
certain circumstances, you may not have to include
canceled debt in income. If you do exclude
canceled debt from income, you may also be
required to reduce your “tax attributes.” Reduction
of tax attributes is discussed in detail later in
this publication.

Nonbusiness credit card debt cancellation.

If you had a nonbusiness credit card debt canceled,
you may be able to exclude the canceled
debt from income if the cancellation occurred in
a title 11 bankruptcy case, if you were insolvent
immediately before the cancellation, or if you
were affected by the Midwestern disasters. You
should read Bankruptcy, Insolvency, or Qualified
Midwestern Disaster Area Indebtedness

An applicable financial entity includes:
• A federal government agency,
• A financial institution,
• A credit union, or
Any organization a significant trade or
business of which is lending money. (PRA DOES NOT MEET ANY OF THESE DEFINITIONS)Interest included in canceled debt. If any
interest is forgiven and included in the amount of
canceled debt in box 2, the interest portion that
is included in box 2 will be shown in box 3.
Whether the interest portion of the canceled
debt must be included in your income depends
on whether the interest would be deductible if
you paid it. See Deductible Debt under Exceptions,
later.Many emails stated this was their first contact by Portfolio Recovery Associates, they never before were contacted, or, they asked for validation of the alleged debt, yet received none.

Two years ago, we went to a Washington Post reporter who contacted the IRS regarding this matter.
PRA must be able to produce some type of valid documents that make their claims credible, however based on their record of accomplishment; they likely have little or nothing to back up their claim.

They are still playing this same game of lies, phony documents, and inaccurate credit bureau reporting.

We contacted many attorneys and officials about this, we can expect that the Consumer Financial Protection Bureau (CFPB) will finally address the abuse and force PRA to comply with the law.

Until then, here is one method of dealing with this consumer swindle.

When you receive a 10990C from
Portfolio Recovery Associates, LLC,
140 Corporate Blvd.,
Norfolk, VA 23502 ...consider the following:

● Send them a certified letter or a fax with a return receipt that gives your name, account number and other identifying information. In it, state that you have never received any goods or services from PRA and the 1099-C issued does not contain any valid explanation of what role they played by losing money or forgiving a debt,

● Demand they send you documents that prove their claim or copies of accounts, signatures, goods provided, services rendered and all other information that connects your social security to their alleged loss.

● If possible, hold off on filing your taxes until they have had a reasonable time (30 days?) to respond to your notice.

● Be sure to keep every item associated with this, including mail, envelopes, etc. If you live in a state where it is legal and call PRA, tape their conversations to create an additional record.
Check here if you are not sure: http://www.rcfp.org/taping/states.html

● If PRA ignores your request and you are under pressure to file your taxes, you would be wise to decide whether you plan to include that 1099-C in your filing. If you plan to file and choose not to include it based on your contention that it is bogus, attach a copy of the letter sent to PRA, and include a Photostat copy of both sides of the green certified mail card and/or the receipt confirmation from your fax.

● Include a letter to the IRS explaining why you feel you do not owe this money and give them a breakdown of the actions you have taken.

● You can also file an online complaint with U.S. Postal Inspectors for what they could determined to be mail fraud at: https://postalinspec...dComplaint.aspx That the USPS Inspectors can make that decision, however if enough consumers file complaints they are obligated to investigate those claims.

● Tape recording their conversation becomes even more important should they contact you after they issued the 1099-C. or should they send a collection. Of course, they will claim it was a mistake… it was not. PRA collects on parasite debts, meaning they are so old, they are decayed and fossilized. If you receive a call under these circumstances, state they sent out a 1099-, ask why they are calling. Expect the lies to come out like puke from a drunk.

● Consumers need to understand that heir hard earned money is being taken under the ruse of legitimacy by a bottom feeder who paid pennies, screwed up your credit and likely violated the Fair Credit Reporting Act (FCRA) rule for “accuracy.”
They are making in excess of $10 MILLION PER YEAR at your expense, living in multi-million dollar homes in and around Virginia Beach and claim to be pillars of the community.

Contact the owners:
Steven D. Fredrickson, President & CEO, sdFredrickson@portfoliorecovery.com
Kevin P. Stevenson, CFO kpstevenson@portfoliorecovery.com
Judith S. Scott, EVP, General Counsel, jsscott@portfoliorecovery.com;

You are the reason they live so well, have luxuries beyond the dream of average consumers and act with a sense of entitlement.

● America, it’s your money that keeps them rolling, all you have to do is say ENOUGH! They buy old debts, many 10-12-15 years old and think they have a RIGHT to our money. They lie, screw up your credit, make a miserable situation even worse all in the name of MON$Y!

Let’s show these parasites the free ride is over, this our country, our money and we are sick of being ripped off by corporations who think they have that right.

Need help or referral to a consumer law professional, we can help.

assistance@consumerjustice.com

[Linx04]

It seems PRA states that they MUST provide 1099-c's to comply with IRS guidelines! SCAM SCAM SCAM!!!!

PRA 1099-c

Quote

A: None, really. The 1099-C is sent to you because the IRS requires that they be issued under the circumstances prescribed in their regulations. We have no other reason to send them except that we are compelled by law to do so. If anything, issuing 1099-Cs is an added financial and administrative burden on us, which we must undertake in order to comply with federal regulations.

IRS regulations mandate that debt buyers issue 1099-C’s on debt that meets certain conditions outlined in the regulations. These regulations are at 26 C.F.R., Sections 6050P-1 and 6050P-2.

This is a communication from a debt collector.

[Linx04]

They have a whole FAQ's part on their website. Amazing, I love this specific one though

Quote

A: Believe it or not, there is some bad and factually incorrect information on the Internet. There is information being posted about Portfolio Recovery Associates on the Internet that is simply untrue.

To understand why and how Portfolio Recovery Associates is a reputable collections company, you first need to understand how our business operates. We buy debt from the lenders that loaned you money. In some cases, those lenders have merged with or been acquired by other banks and lenders. Some of the names of the companies to whom you now owe that money may have changed. As a result, sometimes customers simply don’t recognize the debt as being theirs. Portfolio Recovery Associates is an entity responsible for collecting debt and legally entitled to do so.

This is a communication from a debt collector.

The whole list can be seen here.

[Gio7707]

Interesting , I just received one of this forms (Debt cancellation notice) it was from macy's ..now since this sounds like a scam..what is the next step here ??

[Yaka]

I knew it was a scam the second I opened it...FIRST it was sent, the postmark , was after January 31st, which I believe is the legal deadline for companies/employers to send any tax forms out (someone correct me if inam wrong), in fact it was dated and received at the end of February.

What is interesting to me, was that it said it wasn't for just the debt itself, or the reasons they claim, they actually said it was for a "settlement amount paid".... We have never gotten any collection letters from them, let alone we have NEVER paid them anything, nor have we ever "settled" ANY bills with any agency, or any original creditor!

I knew from the sender it was a scam!

I am glad the IRS also is recognizing..however, thanks to this post, I know they actually ARE FILING these things with the IRS and I need to follow up. I simply filed it and I really thought they would not have the GUTS to actually FILE these, I thought they just were sending simply to get us to call them, complain,get us in contact with them..but they are actually FILING THEM?

What Ka-ho-na's!

Anyone have any reply/responses from the IRS individually they want to share?

Thanks!

Yaka11

[cupcakes]

Hi


I see that you are in Texas so am I am seeking assistance with a lawyer I am willing to pay not looking for a freebie however I need one that is not fear the law firm of Barrett, Daffin, Frappier, Tuner & Engel LLP in Dallas have so much evidence against them state wide its a shame I mean evidence from Sec.gov and U.S. Patents its serious need a good damn lawyer for a CLass ACtion /Debt Collections violation can you help.


Cupcakes

Bud Hibbs, on 04 February 2011 - 06:58 PM, said:

Here we go again; Portfolio Recovery Associates is flooding mailboxes with bogus 1099-C’s claiming they suffered losses on bottom feeder debts they purchased for pennies.

The IRS has a publication that is required reading for anyone being scammed by PRA.

It is IRS Publication 4681 (available online) and Chapter 3 states the following:

Introduction
This publication explains the federal tax treatment
Of canceled debts, foreclosures, repossessions,
and abandonments.

Generally, if you owe a debt to someone else
In addition, they cancel or forgive that debt, you are
treated for income tax purposes as having income
and may have to pay tax on this income.
This publication refers to debt that is canceled or
forgiven as “canceled debt.” However, under
certain circumstances, you may not have to include
canceled debt in income. If you do exclude
canceled debt from income, you may also be
required to reduce your “tax attributes.” Reduction
of tax attributes is discussed in detail later in
this publication.

Nonbusiness credit card debt cancellation.

If you had a nonbusiness credit card debt canceled,
you may be able to exclude the canceled
debt from income if the cancellation occurred in
a title 11 bankruptcy case, if you were insolvent
immediately before the cancellation, or if you
were affected by the Midwestern disasters. You
should read Bankruptcy, Insolvency, or Qualified
Midwestern Disaster Area Indebtedness

An applicable financial entity includes:
• A federal government agency,
• A financial institution,
• A credit union, or
Any organization a significant trade or
business of which is lending money. (PRA DOES NOT MEET ANY OF THESE DEFINITIONS)Interest included in canceled debt. If any
interest is forgiven and included in the amount of
canceled debt in box 2, the interest portion that
is included in box 2 will be shown in box 3.
Whether the interest portion of the canceled
debt must be included in your income depends
on whether the interest would be deductible if
you paid it. See Deductible Debt under Exceptions,
later.Many emails stated this was their first contact by Portfolio Recovery Associates, they never before were contacted, or, they asked for validation of the alleged debt, yet received none.

Two years ago, we went to a Washington Post reporter who contacted the IRS regarding this matter.
PRA must be able to produce some type of valid documents that make their claims credible, however based on their record of accomplishment; they likely have little or nothing to back up their claim.

They are still playing this same game of lies, phony documents, and inaccurate credit bureau reporting.

We contacted many attorneys and officials about this, we can expect that the Consumer Protection Financial Protection Board currently being set by Professor Elizabeth Warren will finally address the abuse and force PRA to comply with the law.

Until then, here is one method of dealing with this consumer swindle.

When you receive a 10990C from Portfolio Recovery Associates, LLC, 140 Corporate Blvd., Norfolk, VA 23502 consider the following:

● Send them a certified letter or a fax with a return receipt that gives your name, account number and other identifying information. In it, state that you have never received any goods or services from PRA and the 1099-C issued does not contain any valid explanation of what role they played by losing money or forgiving a debt,

● Demand they send you documents that prove their claim or copies of accounts, signatures, goods provided, services rendered and all other information that connects your social security to their alleged loss.

● If possible, hold off on filing your taxes until they have had a reasonable time (30 days?) to respond to your notice.

● Be sure to keep every item associated with this, including mail, envelopes, etc. If you live in a state where it is legal and call PRA, tape their conversations to create an additional record.
Check here if you are not sure: http://www.rcfp.org/taping/states.html

● If PRA ignores your request and you are under pressure to file your taxes, you would be wise to decide whether you plan to include that 1099-C in your filing. If you plan to file and choose not to include it based on your contention that it is bogus, attach a copy of the letter sent to PRA, and include a Photostat copy of both sides of the green certified mail card and/or the receipt confirmation from your fax.

● Include a letter to the IRS explaining why you feel you do not owe this money and give them a breakdown of the actions you have taken.

● You can also file an online complaint with U.S. Postal Inspectors for what they could determined to be mail fraud at: https://postalinspec...dComplaint.aspx That the USPS Inspectors can make that decision, however if enough consumers file complaints they are obligated to investigate those claims.

● IMPORTANT: Once a 1099-C is issued, the law mandates that the debt can no longer be collected. This includes PRA selling it off to another vulture. They MUST show a zero balance on your credit report and are prohibited from extending the seven-year reporting statute. PRA cannot call you or send collection notices after a 1099-C has been issued.

● Tape recording their conversation becomes even more important should they contact you after they issued the 1099-C. or should they send a collection. Of course, they will claim it was a mistake… it was not. PRA collects on parasite debts, meaning they are so old, they are decayed and fossilized. If you receive a call under these circumstances, state they sent out a 1099-, ask why they are calling. Expect the lies to come out like puke from a drunk.

● Consumers need to understand that heir hard earned money is being taken under the ruse of legitimacy by a bottom feeder who paid pennies, screwed up your credit and likely violated the Fair Credit Reporting Act (FCRA) rule for “accuracy.”
They are making in excess of $10 MILLION PER YEAR at your expense, living in multi-million dollar homes in and around Virginia Beach and claim to be pillars of the community.
Steven D. Fredrickson, President & CEO, Kevin P. Stevenson, CFO
Judith S. Scott, EVP, General Counsel, Neal Stern, COO, Jim Fike, COO

You are the reason they live so well, have luxuries beyond the dream of average consumers and act with a sense of entitlement.

● America, it’s your money that keeps them rolling, all you have to do is say ENOUGH! They buy old debts, many 10-12-15 years old and think they have a RIGHT to our money. They lie, screw up your credit, make a miserable situation even worse all in the name of MON$Y!

Let’s show these parasites the free ride is over, this our country, our money and we are sick of being ripped off by corporations who think they have that right.

Need help or referral to a consumer law professional, we can help.

assistance@budhibbs.com




Disclaimer: Bud Hibbs, Consumer Justice, & Collectors Exposed are not attorneys or Certified Public Accountants. We do not provide legal or accounting advice. The information provided here is intended to make consumers aware they have options, which include referral to local consumer law professionals for advice and legal assistance.

©Collectors Exposed 2011 All Rights Reserved

[Linx04]

Please e-mail bud at budhibbs@budhibbs.com

[carlene]

Bud Hibbs, on 04 February 2011 - 06:58 PM, said:

Here we go again; Portfolio Recovery Associates is flooding mailboxes with bogus 1099-C’s claiming they suffered losses on bottom feeder debts they purchased for pennies.

The IRS has a publication that is required reading for anyone being scammed by PRA.

It is IRS Publication 4681 (available online) and Chapter 3 states the following:

Introduction
This publication explains the federal tax treatment
Of canceled debts, foreclosures, repossessions,
and abandonments.

Generally, if you owe a debt to someone else
In addition, they cancel or forgive that debt, you are
treated for income tax purposes as having income
and may have to pay tax on this income.
This publication refers to debt that is canceled or
forgiven as “canceled debt.” However, under
certain circumstances, you may not have to include
canceled debt in income. If you do exclude
canceled debt from income, you may also be
required to reduce your “tax attributes.” Reduction
of tax attributes is discussed in detail later in
this publication.

Nonbusiness credit card debt cancellation.

If you had a nonbusiness credit card debt canceled,
you may be able to exclude the canceled
debt from income if the cancellation occurred in
a title 11 bankruptcy case, if you were insolvent
immediately before the cancellation, or if you
were affected by the Midwestern disasters. You
should read Bankruptcy, Insolvency, or Qualified
Midwestern Disaster Area Indebtedness

An applicable financial entity includes:
• A federal government agency,
• A financial institution,
• A credit union, or
Any organization a significant trade or
business of which is lending money. (PRA DOES NOT MEET ANY OF THESE DEFINITIONS)Interest included in canceled debt. If any
interest is forgiven and included in the amount of
canceled debt in box 2, the interest portion that
is included in box 2 will be shown in box 3.
Whether the interest portion of the canceled
debt must be included in your income depends
on whether the interest would be deductible if
you paid it. See Deductible Debt under Exceptions,
later.Many emails stated this was their first contact by Portfolio Recovery Associates, they never before were contacted, or, they asked for validation of the alleged debt, yet received none.

Two years ago, we went to a Washington Post reporter who contacted the IRS regarding this matter.
PRA must be able to produce some type of valid documents that make their claims credible, however based on their record of accomplishment; they likely have little or nothing to back up their claim.

They are still playing this same game of lies, phony documents, and inaccurate credit bureau reporting.

We contacted many attorneys and officials about this, we can expect that the Consumer Financial Protection Bureau (CFPB) will finally address the abuse and force PRA to comply with the law.

Until then, here is one method of dealing with this consumer swindle.

When you receive a 10990C from
Portfolio Recovery Associates, LLC,
140 Corporate Blvd.,
Norfolk, VA 23502 ...consider the following:

● Send them a certified letter or a fax with a return receipt that gives your name, account number and other identifying information. In it, state that you have never received any goods or services from PRA and the 1099-C issued does not contain any valid explanation of what role they played by losing money or forgiving a debt,

● Demand they send you documents that prove their claim or copies of accounts, signatures, goods provided, services rendered and all other information that connects your social security to their alleged loss.

● If possible, hold off on filing your taxes until they have had a reasonable time (30 days?) to respond to your notice.

● Be sure to keep every item associated with this, including mail, envelopes, etc. If you live in a state where it is legal and call PRA, tape their conversations to create an additional record.
Check here if you are not sure: http://www.rcfp.org/taping/states.html

● If PRA ignores your request and you are under pressure to file your taxes, you would be wise to decide whether you plan to include that 1099-C in your filing. If you plan to file and choose not to include it based on your contention that it is bogus, attach a copy of the letter sent to PRA, and include a Photostat copy of both sides of the green certified mail card and/or the receipt confirmation from your fax.

● Include a letter to the IRS explaining why you feel you do not owe this money and give them a breakdown of the actions you have taken.

● You can also file an online complaint with U.S. Postal Inspectors for what they could determined to be mail fraud at: https://postalinspec...dComplaint.aspx That the USPS Inspectors can make that decision, however if enough consumers file complaints they are obligated to investigate those claims.

● IMPORTANT: Once a 1099-C is issued, the law mandates that the debt can no longer be collected. This includes PRA selling it off to another vulture. They MUST show a zero balance on your credit report and are prohibited from extending the seven-year reporting statute. PRA cannot call you or send collection notices after a 1099-C has been issued.

● Tape recording their conversation becomes even more important should they contact you after they issued the 1099-C. or should they send a collection. Of course, they will claim it was a mistake… it was not. PRA collects on parasite debts, meaning they are so old, they are decayed and fossilized. If you receive a call under these circumstances, state they sent out a 1099-, ask why they are calling. Expect the lies to come out like puke from a drunk.

● Consumers need to understand that heir hard earned money is being taken under the ruse of legitimacy by a bottom feeder who paid pennies, screwed up your credit and likely violated the Fair Credit Reporting Act (FCRA) rule for “accuracy.”
They are making in excess of $10 MILLION PER YEAR at your expense, living in multi-million dollar homes in and around Virginia Beach and claim to be pillars of the community.

Contact the owners:
Steven D. Fredrickson, President & CEO, sdFredrickson@portfoliorecovery.com
Kevin P. Stevenson, CFO kpstevenson@portfoliorecovery.com
Judith S. Scott, EVP, General Counsel, jsscott@portfoliorecovery.com;

You are the reason they live so well, have luxuries beyond the dream of average consumers and act with a sense of entitlement.

● America, it’s your money that keeps them rolling, all you have to do is say ENOUGH! They buy old debts, many 10-12-15 years old and think they have a RIGHT to our money. They lie, screw up your credit, make a miserable situation even worse all in the name of MON$Y!

Let’s show these parasites the free ride is over, this our country, our money and we are sick of being ripped off by corporations who think they have that right.

Need help or referral to a consumer law professional, we can help.

assistance@consumerjustice.com

I will certainly start by doing all of the above. Thanks . I want to do more to stop these people.. cannot believe they have logos all over their site .. best small business in 2011 .. bbb logo. What country do I live in ? This account was MBNA in 1988 bought by Bank of America (didn't bank of a get bailout money ).. then they gave to PRA.. sick.

[Massive]

carlene, on 04 February 2012 - 09:39 AM, said:

I will certainly start by doing all of the above. Thanks . I want to do more to stop these people.. cannot believe they have logos all over their site .. best small business in 2011 .. bbb logo. What country do I live in ? This account was MBNA in 1988 bought by Bank of America (didn't bank of a get bailout money ).. then they gave to PRA.. sick.

Please let us know how this comes out. I'd like to see how they attempt to justify the 1099-C they issued on a debt from 1988.

[carlene]

Massive, on 06 February 2012 - 03:36 PM, said:

Please let us know how this comes out. I'd like to see how they attempt to justify the 1099-C they issued on a debt from 1988.

The original date was in 1988 MBNA - Bank of America bought it ..then PRA took it over . We got one piece of correspondence from PRA.. and we asked them to send back to Bank of America and send proof of debt. We sent this certified return reciept and have the letter and info . Next thing we new they CO 4/11 and we just got the 1099 . The original CC had a limit of $25000 . this 1099 says CO of $44000 . YIKES. there is no separation of interest etc. on 1099. and it is Charged off .by PRA we never borrowed from them but they are claiming this as a charge off.

[Massive]

carlene, on 07 February 2012 - 10:03 AM, said:

The original date was in 1988 MBNA - Bank of America bought it ..then PRA took it over . We got one piece of correspondence from PRA.. and we asked them to send back to Bank of America and send proof of debt. We sent this certified return reciept and have the letter and info . Next thing we new they CO 4/11 and we just got the 1099 . The original CC had a limit of $25000 . this 1099 says CO of $44000 . YIKES. there is no separation of interest etc. on 1099. and it is Charged off .by PRA we never borrowed from them but they are claiming this as a charge off.

Portfolio Recovery Associates charged it off?????? When did it actually charge off MBNA/B of A??? PRA didn't charge it off, you are dealing with a fraud that needs exposing.

[ray99]

Hi! My first post here.....

I came by here about a week and a half ago after having received a 1099c from Portfolio Recovery Associates. I had done a google search on the 1099 and wound up here. I found some good information when I stopped by, but could use a bit more.

Following receipt of the 1099c, I sent PRA a letter that in large measure followed the guidelines offered in the first post. As was the instance with another poster, this debt involved an old alleged debt with MBNA. I had started to get robot calls to my home a few years back; those calls didn't even say what company was calling, nor did they give any information about the alleged debt. They just were vaguely threatening about resolving an alleged debt, and telling me to call an 800 number given in the robot message.

I subsequently did a trace on the call and learned that it was coming from PRA. I immediately sent them a letter citing 15 U.S.C. Section 1692c© asking that they cease all further contact other than that which was set forth in the Federal law. I did so because they were calling multiple times every day for days on end.

I've received a letter from PRA in response to my recent letter about the 1099, which again more or less followed the guidelines discussed in this thread. They seem to be implying that it was o.k. for them to proceed with the 1099 because my earlier letter a few years back had told them not to contact me. SO, my question is this.... would anyone here happen to know if the type of "cease contact" letter I've mentioned earlier would have prohibited PRA from mailing me some sort of validation of the debt? I've never received any validation from them, and so there was no opportunity to dispute the debt prior to receiving the 1099. As far as I knew, this was just some company repeatedly calling me a few years back, not saying who they were or precisely what debt was owed. I ask, because it seems to me (and I'm certainly no expert...) that if my earlier letter precluded them from sending a validation they might have some basis to say they had no choice but to proceed to the 1099. If however, they were not precluded from validating the debt, then it seems to me they have no argument whatsoever.

Any info on this question would be greatly appreciated. Thanks so much for offering a "well" of info for someone like me that received this notice and didn't have a clue as to what to do about it.

[Dunned Again]

If you said 'cease and desist' in your VOD letter then that means no more contact under the FDCPA. They have the right to contact you once more to tell you of their intentions.

[ray99]

@Dunned Again

Thanks for your response. I guess my difficulty is that this wasn't really a "VOD letter". My "cease and desist" notice was in response to a flood of robo calls that didn't identify the company calling or the precise nature of the debt. I only learned the identity of the company by *69-ing the robo call. In reality, all I wanted was to see the robo calls stop and didn't even know what debt they were attempting to collect.

I never received anything from PRA validating the debt. Perhaps the more specific question would be whether or not PRA is allowed to send a letter validating the debt once someone has sent them a cease and disist notice? PRA appears to be saying that the cease and desist notice paves the way to the 1099, I'm questioning how you get there when RRA never validated the debt in the first place?

Thanks again!

[Massive]

ray99, on 15 February 2012 - 08:12 AM, said:

@Dunned Again

Thanks for your response. I guess my difficulty is that this wasn't really a "VOD letter". My "cease and desist" notice was in response to a flood of robo calls that didn't identify the company calling or the precise nature of the debt. I only learned the identity of the company by *69-ing the robo call. In reality, all I wanted was to see the robo calls stop and didn't even know what debt they were attempting to collect.

I never received anything from PRA validating the debt. Perhaps the more specific question would be whether or not PRA is allowed to send a letter validating the debt once someone has sent them a cease and disist notice? PRA appears to be saying that the cease and desist notice paves the way to the 1099, I'm questioning how you get there when RRA never validated the debt in the first place?

Thanks again!

I see no existing authority for ANY junk debt buyer to legally file a 1099-C whether they are able to "validate" a debt or not. They never loaned you any money to put them in position to "forgive" ANY debt. They "purchase" a huge portfolio of debts for pennies on the dollar and then have the audacity to file a 1099-C as if they suffered a loss of the total face value of the "purchased" debt. Give me a break!!!

[mrdoon]

Here's a link to some relatively recent court cases about the issuance of a 1099C where the 1099C was issued several years after the account was written off. http://www.wscpa.org...tent/39754.aspx - in particular, take a look at Gaffney v. Commissioner (8/30/10) and Kleber v. Commissioner (9/28/11).

Thanks to "PK" who posted this info on several other discussion boards.

[SaintGermaine2012]

Hi there Peeps. Seems I was the recipient of a 1099c as well from PRA. My story starts off with a law suit being
brought against me in 2006 by PRA for a credit card in the amount of $1223.10. Of course, the case was dropped
before it could happen and I was told it was charged off. I didn't hear anything about it for a few years and then in
December of 2010 I received a "3 option offer" mail from PRA on how to pay back the debt. I responded by sending
them a "Cease communications" letter via certified mail due to the alleged debt being over the 4 year limit (I'm in
PA). Then in February of 2011 I received my first 1099c form stating that the debt had been "canceled" on
12/24/2010. For whatever reason, on this form they had checked the box "NO" for "Was borrower personally liable
for repayment of the debt". I then saw that they were still showing up on my credit report which is definitely over the
7 year SOL. I wrote them and requested a Validation of Debt via certified mail, return receipt requested in March of
2011 with an Affadavit of Fact (that I never signed into any agreement or anything at all with PRA) attached signed
by myself and my local notary public. I received nothing back but the green receipt card that they signed, but nothing
else. No proof, no documents, nothing. I received a "corrected" 1099c with the "YES" field now checked for "Was
borrower personally liable for repayment of the debt". I did my research on line at this point concerning the 1099
forms being sent out by them and found that if you had sent the VOD and they sent absolutely no proof back of the
alleged debt, that your best bet was to ignore it as a ploy by them to scare people into paying. Hadn't heard from
them since. However, I've just received a form from the IRS telling me that I owe money due to a discrepancy on my
2010 tax filings. You guessed it. It's for "Cancellation of a Debt" and the debt being the $1223. Now, I know the
first thing I want to do is pay the IRS this money and then worry about recouping it later (if I can beat PRA) so that
interest and penalties don't add up. Yet, I want to know what is the best course of action to take afterwards in going
after PRA? What other correspondence can I send and to whom? It's amazing to me that they are blatantly a junk
debt buyer and everyone knows it, yet they claim all these debts as being theirs!!?? How can they be the original
creditor if they aren't a credit card company!!?? The IRS doesn't see this, nor the courts? I just want to know what
to do and who to contact at this point from anyone with prior experience/success. They were unable to send me any
documentation whatsoever to prove the debt or that it was theirs to collect. Also, and most importantly, if I pay this
bill to the IRS, it's not like admitting to the debt (like paying PRA would have been) and restarting the 7 year SOL
clock again, IS IT?? Also, if I pay this amount to the IRS does that mean that this debt can no longer be pursued or am I going to be getting a form like this every year (in other words, after the 1099c is issued for cancellation of a debt, they can't sell it off again to a new junk debt buyer can they? Thanks in advance.

[Gordon121]

Bud Hibbs, on 04 February 2011 - 06:58 PM, said:

● IMPORTANT: Once a 1099-C is issued, the law mandates that the debt can no longer be collected. This includes PRA selling it off to another vulture. They MUST show a zero balance on your credit report and are prohibited from extending the seven-year reporting statute. PRA cannot call you or send collection notices after a 1099-C has been issued.

This statement is misleading and incorrect.

The IRS says the form 1099-c has no state-law effect.
There are case laws (need to dig in the archive) in which a collection law suit was filed AFTER a 1099C was issued.

However, some states' courts (notably Connecticut) have ruled differently. In the Connecticut case (Franklin Credit Management Corp. v. Nicholas) the debtor used it defensively to get the court to declare that it was a signed writing which voided the debt under the UCC.

This post has been edited by Gordon121: 01 May 2012 - 07:06 PM

[Massive]

Gordon121, on 01 May 2012 - 07:06 PM, said:

This statement is misleading and incorrect.

The IRS says the form 1099-c has no state-law effect.
There are case laws (need to dig in the archive) in which a collection law suit was filed AFTER a 1099C was issued.

However, some states' courts (notably Connecticut) have ruled differently. In the Connecticut case (Franklin Credit Management Corp. v. Nicholas) the debtor used it defensively to get the court to declare that it was a signed writing which voided the debt under the UCC.

I remember reading a few years ago about a case where a judge ruled that even though a 1099-C had been issued IT DID NOT CANCEL THE DEBT, (which same debt was in litigation).
That blew my mind. I'm going to try to hunt that story down.

[mrdoon]

I have spent the better part of the last 6 weeks researching the issue of a 1099-C being issued for old debts. There is a general lack of information about this issue and what does exist is often based on supposition and is inaccurate and/or flawed. I am not an expert by any means but I thought I'd share what I found...

I was able to locate several Tax Court opinions that all focus, at least in part, on the cancellation of indebtedness income and the issuance of a 1099-C. The facts of the cases differ but typically, the tax payer contested the 1099-C because it was filed after (usually years after) the identifiable event occurred. In each case, when making their decision the Court cited Cozzi v. Commissioner, 88 T.C. 435, 445 (1987) and stated that "The moment it becomes clear that a debt will never be repaid, that debt must be viewed as having been discharged."

In my case, Portfolio Recovery Associates filed two 1099-C for tax year 2010 for credit card debts that I defaulted on back in 1996. I have submitted a letter to the IRS challenging the issuance of the 1099-C by PRA as well as documentation (monthly statements, letters from the OC, etc.). It is my position that the identifiable event occurred long before 2010 and, as such, the 1099-C forms were issued erroneously. If the identifiable event didn't occur when MBNA and Cap-One charged off my accounts back in 1996/97, then it certainly did when the 36 month waiting period came and went or when the statute of limitations expired back in 2000/01 and the OC had failed to take action to obtain a judgement against me. I just sent my response off to the IRS so I don't know if they will agree without me having to go before the Tax Court but I will keep you posted...

One caution that my friend who is also a tax attorney gave me... This approach is probably best used for very old, out of statute debts that are also beyond the statute of limitations for collecting taxes (usually 3-6 years) as you want to make sure that you're not pointing the IRS to a time period that they can review. In other words, if you receive a 1099-C for 2011 but claim that the identifiable event occurred in 2006, the IRS might dig around and say that you actually owe interest (and maybe penalties) for the entire 5 year time period, not just for the last year.