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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41220
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I was given a 1099c from citibank for cancelled debt in 2011.

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I was given a 1099c from citibank for cancelled debt in 2011. It is still showing on my credit report as an amount still owed of 9k and they are reporting this every month. I contacted Citibank and they told me they will continue to report this amount of 9k until the statute of limitations runs out, eventhough this is a cancelled debt. Can they do this even though they cancelled the debt and I had to report this on my taxes? I asked for a written policy stating this, they told me they could not give me anything in writing. Is this legal? What rights do I have as a consumer? I am trying to buy a house and this is stopping me from being able to get a loan.
Thank you for your question. Please permit me to assist you this afternoon.

To answer your question directly, a 'canceled' debt, or a 'discharged' debt is still valid. By canceling the other party is stating that they are not going to pursue this debt but that the debt is still valid in nature. Because the validity of the debt is not in dispute, the holder of the debt is completely within their rights in continuing to report it on your credit history. What you needed to obtain is a formal letter both releasing you from the debt owed AND a promise from them to not report this debt to the credit bureau/ Failure to do so allows them to claim that this is still an outstanding debt. I disagree about disputing, I do think that is a valid approach short of contacting the owed lender and offering a smaller lump sum amount fr debt owed in exchange for them removing the whole debt from your credit history. I am afraid otherwise the past lender is acting legally toward you.

Good luck.
Customer: replied 3 years ago.
Can I write this formal letter myself or an attorney? And if I go thru the credit bureau to dispute, what would I dispute and do I need to send documents along with it?
Thank you for your follow-up, Nita.

There is no requirement that this letter be written by an attorney but what generally happens is an attorney driven letter is given more deference and is taken more seriously. In terms of a dispute, you can do that yourself online, just go to each of three credit bureau websites, pull up your record, and then file for a formal dispute If you have a letter from the lender discharging your debt, include that as part of your evidence that the notice is incorrect. The other side will have 30 days to contest your report and potentially either uphold it via their own evidence, or let it go, which would automatically remove this from your history.

Good luck.
Customer: replied 3 years ago.
Do you know which one would cause a quicker response time?

An attorney letter causes a faster response almost every time.

Good luck.
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