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wampr

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Cancelled Debt still showing on Credit Report
I received a letter from the IRS a couple months ago stating I owed taxes on a cancelled debt, from an old credit card. The debt was supposedly cancelled in July 2011 (the company never informed me, just the IRS); I have since paid the taxes on that money (taxed as "income").
Now, I look at my creidt report, and the credit card company is still carrying me as owing the full amount, with a charged off card. They update the report every month. I called the company (Citibank) and they confirmed I owe no money as they reported the cancelled debt to the IRS. Is it right this should still be reflected on my Credit Report, or should this have dropped 2 1/2 years ago??

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This is a tricky area.  Legally, they can report the account for 7 & 1/2 years from date it first went delinquent.  I recently learned from another website (the blog was from an attorney) that if any original creditor has done a write-off or charge-off, they should not be able to show the account as having a past due amount or a balance.  The account should report as closed, charged-off, zero balance and zero past due.  Since the IRS considered their write-off "income", they are not allowed to collect that amount again.  How can they get income twice from same account?  Unfortunately, I can't point to any law or regulation proving this.  Send them a letter stating they need to report it as zero balance and zero past due.  Also request a complete copy of your payment history.  Send same letter to all three credit bureaus.  Be a general pain in the tail through the mail and don't give up.  It will take time, but you may prevail.  Best of luck to you!

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