credit card company trying to get over

State=oklahoma

I have an issue with a creditor, a settlement was offered to me on 3-12-2001 for a credit card debt, in order for this offer to remain valid I had to pay the settlement amount by 3-13-2001 in which the check for the settlement amount was mailed express on 3-12-01 in which they received this on 3-13-01, I received a letter stating the settled amount has been paid in full on 4-17-2001, this debt is now on my credit showing a balance keeping in mind that it was not on my credit last year this time. I found out about this when applying for a loan that this was on my credit with a lien. I have called the company and they are telling me that it is not showing as a lien but as a settled debt, and in order to take that settled off of my credit, the charged off amount would have to be paid, never heard this before. when i paid the settled amount i thought i was taking care of the bill in full. where should i go from here, my intentions are to write the credit bureaus putting copies of all letters from the company in the letter asking that they investigate this to remove this from my credit. and if this don't work the next step is to get a lawyer. please give advice:

[bigun]

Why would you think you paid in full if you paid a lesser amount than was owed?
Sorry, take your shot with the CRA's but, I doubt you get anywhere. I wouldn't waste any money on a lawyer.

I figure that if a company offer you a settlement and you pay that settled amount, that the account would be taken care of, although yes there was a written off amount, what is the point of a settlement?

Dear 32sexy,

The point of a settlement is to allow the creditor to get paid by compromising the amount of their claim. They cannot sue you or otherwise try to collect the remaining balance on the account. They "forgave" that portion of the debt in consideration for your lump-sum payment.

Potential creditors have the right to know that you borrowed money from this lender and didn't repay the full amount you borrowed. This is to protect conservative lenders from making the mistake of lending to you and expecting full payment.


[email]JASON@LEGISLATOR.COM[/email]

Ok that is all fine and good but, my mortgage company said that they put a lien on my credit, can they do this? although the account was settled.

[JETX]

Something is confused here... there is no such thing as a lien on credit.

They might have put a lien on your assets, but not on your 'credit'.

If they put a lien on an asset as a result of this debt, you can demand that they remove it (since the debt has now been paid).

As for your credit report, the purpose of a consumer credit history is to show your history and maturity to repayment. The only right you have as to the credit history is that it be accurate.

[bigun]

32 sexy,

Lein on your credit is not the correct terminology. What the credit report probably shows is the notation of "paid/settled" or, juste "settled". Either way, it is a ding but, the cc company is within there right to report it that way if, that is actually what happened.
Actually, it sounds if you got a bit lucky. If the difference between what was owed and what you paid is over $600, the cc company is supposed to issue a 1099C which is income to you and is supposed to be reported on your taxes.

Yes they did send me a 1099-c in the mail, but how is that helping me will this put me in a higher tax bracket or something? i've never dealt with this situation before, and hopefully never again.

thanks for your help

If they did put a lien on my assets how will i know? also is the correct way of having this lien removed if in fact there is one, by sending copies of all paperwork to the credit bureau, along with a letter.

[bigun]

Ok , we're going at this piecemeal.
First thing you need to do is order a copy of your credit report. If you've been denied credit in the last 60 days, you canget a free report from the CRA that the potential lender used. Get the report and see exactly what it says. A lein can be placed against a physcial asset. A home, auto, bank account, etc. if the state law allows such an action. But, you have to get a court order to do something like that. Have you been sued and either lost or failed to appear in court?
Now, to the 1099C. That ain't helping you a bit. That figure is income to you and you'll be taxed on that amount. There is one way to keep from paying additional taxes. If you can prove you were insolvent on the day the deal was done, you owe no taxes. In other words, you'll have needed to have a negative net worth on 3/13/01.

No I have not been sued. nor haveI been to court. So basically the 1099c is putting me in a higher tax bracket is this correct? and if it is I will be paying more taxes.

Thanks, for you help in this matter