1099c and Vector-One

[pauljets]

I have a simple question. If an insurance company issues a 1099c to me are they now obligated to notify Vector One of this forgiveness or do i need to write to Vector One and prove to them that the debt no longer exists?

 

[NSRH]

If you receive a 1099-C because you paid off the debt for less than the full amount due in a negotiated settlement, then clearly you don’t owe any more money. However, if the form was filed because you haven’t made payments for three years and they haven’t tried to collect recently, then you may still owe the debt. If you still owe the debt (because you didnt pay) Vector will leave it on.

 

[walthamny]

Vector One is a private credit agency, it does not have to follow the Federal Credit reporting rules. So they can report it anyway they like and change the rules anytime. Fair credit reporting laws dont apply to Vector One.

Having a 1099C issued can mean the company gave up on collecting from you and is writing off the debt for tax purposes. You will be still responsible and most likely Vector one will include this debt.

It could also mean you partially settled the debt. In that case, I would have included in the settlement that they report to vector one as paid in full.

Now life insurance companies are not obligated to report to Vector One anything, in fact, many times if the agent leaves the industry, reporting a debt to Vector One means nothing. Each company picks and chooses who they report and when to report.

 

[VolAgent]

Vector One is a private credit agency, it does not have to follow the Federal Credit reporting rules. So they can report it anyway they like and change the rules anytime. Fair credit reporting laws dont apply to Vector One.

Having a 1099C issued can mean the company gave up on collecting from you and is writing off the debt for tax purposes. You will be still responsible and most likely Vector one will include this debt.

It could also mean you partially settled the debt. In that case, I would have included in the settlement that they report to vector one as paid in full.

Now life insurance companies are not obligated to report to Vector One anything, in fact, many times if the agent leaves the industry, reporting a debt to Vector One means nothing. Each company picks and chooses who they report and when to report.

Close, but not quite.

Fair Credit Reporting Act only applies to consumer reporting agencies. As it is a business debt and only commission, I do not believe the FCRA would apply, and apparently neither does Vector One.