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Question By
elemenop1275

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Creditor wont accept payment on charged off account (1099c)
So i'm trying to apply for a mortgage and need to pay off this old charge off. I contacted the creditor with the intention of paying it all in full in exchange for a "paid in full" on my credit report (my mortgage company said I need to pay it off), but they refused to take the payment. They said the debt has been "forgiven" and they wont take my money. How do I get them to take my money?

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I would speak to a consumer law attorney about this matter and see if there is anything that they can do to help you. You should also address this with the loan officer that you spoke with. Also consider looking around for more lenient mortgage lenders.

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Sorry, but it is their choice.  The reason for the charge-off was that you were not making the agreed payments.  The 1099c was filed with the IRS and can't be taken back. You just have to live with the consequences of your failure to keep your part of the agreement.

Reply by
elemenop1275

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Hey Everyone.  So it's been 2.5 months since I asked this question and I wanted to give an update in case anyone else is in this same situation.  I started by disputing the balance with each CRA and sending them a copy of the 1099C.  Experian did what they were supposed to do immediately and updated the balance to zero.  Transunion and Equifax verified the balance.  I disputed again and Equifax changed the balance to zero as well, but Transunion verified again.  I then got an alert that there was another change on my credit report, and Equifax changed my balance AGAIN from zero, back up to the original amount.  

I decided then to file a CFPB complaint for Equifax and in less than 2 weeks, Equifax responed and agreed with me that my balance should be zero, which they updated immediately.  I then called Transunion - they said that they didn't see the 1099C paperwork I included so they offered to reinvestigate.  They did and verified the original balance as correct.  Again frustrated, I filed another CFPB complaint and again Transunion agreed with me that my balance SHOULD IN FACT BE ZERO.  Done and done.  Thanks for your help guys.

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