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dwarfess
Joined: 05 Oct 2007
dwarfess's page
Posts: 13
1133 Magic Points
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Subject: OC reported as a loss
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Sat Nov 17, 2007 6:03 pm
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Filed taxes using H&R Block and received a rapid tax refund from HSBC Bank USA. The refund took 9 months, thus I was charged interest for 9 months.
Credit reports show this account was charged off, closed and reported as a loss by the credit grantor. If reported as a loss, can collection efforts continue?
Just received collection letter from HSBC Taxpayer Financial Services. How do I respond for purposes of validation . . . should HSBC Financial Services be treated as a collection agency?
Letter from HSBC:
10/16/2007
HSBC Taxpayer Financial Services Inc
P.O. Box 10690
Wilmington, DE 19850-0690
RE: Account Number: xxxxxxxxx
During a review of your account, we noted that late charges previously assessed were incorrectly calculated. As a result, we have credited $4.62 toward your outstanding balance. Your revised balance outstanding is $240.72.
For your convenience, you can call our secured automated service to pay over the phone at 1-800-288-3811 or send payment to the following address through Western Union Quick Collect:
Code City: TAXMASTERS
STATE: DELAWARE
Please remember to include your loan number on the Western Union Payment form.
We appreciate your business and regret the inconvenience our error may have caused. Please contact us at the toll-free number provided if you have any questions.
Sincerely,
HSCB Taxpayer Financial Services Inc.
800-543-1080
This communication is from a debt collector. We are required by law, if applicable, to notify you that we are attempting to collect a debt and any information obtained will be used for that purpose. |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 582
11 Magic Points
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Sun Nov 18, 2007 10:58 am
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| Quote: |
| Credit reports show this account was charged off, closed and reported as a loss by the credit grantor. If reported as a loss, can collection efforts continue? |
Yes. A charge off means that the debt was moved from asset to loss...but the debt still exists.
| Quote: |
| Just received collection letter from HSBC Taxpayer Financial Services. How do I respond for purposes of validation . . . should HSBC Financial Services be treated as a collection agency? |
Honestly, I wouldn't bother (seems you know you owe the money), and that might be seen as a stalling tactic-they might later refuse a pay for delete settlement.
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I don't dream since I quit sleeping |
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goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3927
10 Magic Points
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Sun Nov 18, 2007 12:14 pm
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They should have reported it as a lose in that year and then you would have had to report it as a gain. If they never informed you, how can you report something that you don't know about.
Companys that charge off are required to report the loss to the irs, there is great conversation about this on the debt consolidation care webpage. Click the debt link above and then put irs or charge off in the search engine, if that does not work, pose your same question there and someone will come along. I know I have read many threads there on people this has happened to.
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Mon Nov 19, 2007 12:14 am
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They should have reported it as a lose in that year and then you would have had to report it as a gain. If they never informed you, how can you report something that you don't know about.
A charge off is not the same as a cancellation of a debt, and debts are legally required to be charged off after 180 days in default. In any case, it has not been cancelled if the original creditor is still pursuing collections (it isn't even in the hands of a 3rd party collection agency). Also, the 1099-C threshold is $600. |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1334
35466 Magic Points
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Mon Nov 19, 2007 7:13 am
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Hi Dwarfess,
A charged off account still remains payable. I agree to the opinions given above
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Regards,
Laura. |
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