Are these violations of fair debt collection practices act?
Are these violations of fair debt collection practices act?
My husband fell 6 months behind on a credet card bill. The account was turned over to a collection agency in Texas.After repeated phone calls to both my husband and his employer. My husband called the CA and asked them to stop contacting third parties. He tried to make arrangements to pay the debt. He was not able to come up with the sum that they wanted so the calls continued. They called us numerous times. Sometimes 10 or more times in one hour. They continued to call his employer even when the employer asked them to stop calling. They called our neighbor, parents, and siblings. I contacted them and made arrangements to pay the bill in monthly enstallments. Two payments have been made as agreed. We have not missed a payment. Yesterday I was contacted by them stating that if I couldn't settle the debt that day they would send a 1099C form to the IRS. Claiming that my unpaid debt was considered nonwage income even though I was paying on it. they also called a third party this same da
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They can't contact you by phone, if you've asked them to stop-
Unpaid debt is NOT income!
From another site:
When the 1099-C is issued to you and to the IRS, you must claim the indicated amount as income in the year the debt was forgiven.
Once you pay the income tax on the forgiven amount, the creditor can not come after the same amount again. The debt is forgiven.
The taxes are surely less than the debt, pay it, and forget about it.
Did you have any of this in writting. That is did your husband send them a certified letter stating that they were not to communicate with anyone else. Did you have the payment arangements in writting? If not there is really no proof other than a you said/they said sort of thing.
However, having them give you a 1099-C may not be the worst thing that could happen. Once they do this they are officially writting off the debt and can not come after you again for it. You will have to pay taxes on the amount but depending on your tax situation this might be a very small percentage based on the settled amount.