Portfolio Recovery Associates
Erroneous Debt Reported to IRS as Income to Me!

In 2006 I received a letter from Portfolio Recovery Associates demanding I pay some $1,600 from some old debt. I wrote them a letter telling them not to contact me as I do not recognize the debt.

In February I received an IRS Form 1099-C from Portfolio Recovery Associates indicating the amount is income to me as a "canceled debt." When I phoned that outfit, the woman was so rude to me on the phone I could not believe it. Along with insulting me personally, she refused to give me any information saying I had put a "cease and desist" order on my account. I am supposed to believe they can't release information to the person they claim owes but they can send the IRS and me a 1099-C showing the disputed debt as income to me.incredible!

I called IRS but they said it is a civil matter and I have to pay income tax on it. If I am later able to get a corrected 1099-C from these people, I could file an amended return and get my tax money back.

This should frighten any fair minded person. Because this outfit has my social security number, they can report fake income to me to the IRS. I have filed a complaint with the FTC and have notified the attorney general in my state.

That company is listed on http://creditinfocenter.com/debt/JDBs. Shtml as having already been penalized and fined by the FTC. But that doesn't help me because I have no ability to prove to the IRS that the 1099-C is wrong.By the way, neither this outfit nor the fake debt is not listed on my credit report.

Anyone else who has had similar troubles, please let me know if you have had any success with them. And beware!
Thanks!

Company: Portfolio Recovery Associates
Country: USA
State: Virginia
City: Norfolk
Address: 120 /Corporate Blvc
Phone: 7575194735

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