Have you received a 1099C letter from a debt collector?

I am collecting letters from debt collectors that threaten the issuance of a 1099-C (forgiveness of debt). There are a lot of different strategies that collectors are using to collect money using the threat of tax liability for foregiveness of debt. Often the collectors mis-state the law and the level of taxpayer responsibility. There are also some interesting legal issues now regarding the collection of accounts after a 1099-C has been issued. This should be completely banned, but at present it is not necessarily illegal. By the way, this is an issue where your vote in November can make a difference to your pocket book. If you vote for representatives who put the interests of Wall Street ahead of the interest of working people, you are going to end up with laws that allow banks to charge off a debt as a bad debt, so the bank takes a tax deduction, the consumer incurs a tax liability, then the bank sells the loan to a bottom feeder debt collector. The bottom feeder sues the consumer, gets a default judgment for the full amount of the debt plus interest and court costs. That's the kind of junk that is going on right now, and it really has to stop. Anyway, if you receied a 1099 letter from a debt collector, feel free to send it to me. If you want a referral to a NACA consumer attorney in your area, I will be happy to find one for you.

News Reporter Wants Information on Unfair Collection Practices.

It has been passed along to me that a news reporter is looking to talk to consumers with the following stories:

1. Anyone who’s been harassed or mistreated by a debt collector (especially any cases that are particularly extreme or unusual.) 

2. Anyone who’s been collected on twice for the same debt, by different collection agencies.

3. Anyone whose debt became a lot bigger as second- or third-generation debt collectors charged extra fees and interest on the principal amount owed. 

4. Anyone who’s had their ability to dispute a creditor blocked by a “forced arbitration” clause. 

5. Anyone who’s landed in financial trouble because they used an online payday lender. 

6. Anyone who's paid for "debt settlement" services and found themselves actually worse off as a result.

Actually, I am aware of more than one reporter looking for cases like these. If any of these apply to you, even if you don't live in Indiana, feel free to contact me, and I will try to get you in touch with one or more of the reporters.  It is very important that your story be told. Right now the Consumer Financial Protection Bureau is looking to strengthen regulations against debt collectors and also looking to abolish mandatory pre-dispute consumer arbitration.  We need to both build public awareness and help the CFPB as well as friendly legislators.  If it just so happens you have a good court case or a valid defense to a lawsuit, all the better.    You can contact me through my website or by calling me at 317-662-4LAW.