• Report: #1005767

Complaint Review: SpringLeaf Financial

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  • Submitted: Tue, January 29, 2013
  • Updated: Thu, January 31, 2013

  • Reported By: Marcia — Stuart Florida United States of America
SpringLeaf Financial
601 NW 2nd St Evansville, Indiana United States of America

SpringLeaf Financial GMC Credit Settlement Agreement Dishonestly Evansville, Indiana

*Consumer Comment: Information from a tax professional.

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In September 2012, I contacted GMC Credit Services, a company that was billing me regarding a debt I owed to Springleaf Financial Services.  GMC was handling the account directly for Springleaf Finance.  I spoke to a Mr. Fleck and asked him what I needed to do to resolve the account.  We agreed that I could pay $4500.00 to close the balance of the account.  We agreed that much of the outstanding was interest and late fees from being late, and not the actual principal on the account. 

Mr. Fleck sent me a letter via e-mail stating they would receipt $4500 as a settlement on the balance due - NOT toward the balance due.  The letter further states that the account, upon receipt of the funds, would be closed. 

Today, I received an IRS form advising that the amount that was written-off is being reported by Springleaf Financial as income.  I called Springleaf Financial and spoke to "Nathan."  I advised him of the content of the letter, and that I had made the agreement based on the fact that the loan would be completely closed (gone, forever).  Nathan stated my agreement was with GMC Credit and refused to call the company to verify the settlement offer, and refused to put in a request to rescind the IRS notification.  

 There is no blurb or small print in the letter that states that GMC Credit or Springleaf Financial reserves the right to inform the IRS of any balance unpaid.  The company completely misrepresented the statement "the account is closed."  They took the good faith of a struggling consumer and twisted the intent of the settlement. 

Had I been aware that Springleaf would still take any type of legal or financial action, the conversation, the settlement, and the letter I received would have been completely different.  I am sure I am not the only former customer who will receive this type of treatment. 

This report was posted on Ripoff Report on 01/29/2013 07:12 PM and is a permanent record located here: http://www.ripoffreport.com/r/SpringLeaf-Financial/Evansville-Indiana-47708/SpringLeaf-Financial-GMC-Credit-Settlement-Agreement-Dishonestly-Evansville-Indiana-1005767. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 1Consumer 0Employee/Owner
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#1 Consumer Comment

Information from a tax professional.

AUTHOR: karenp - (United States of America)

I am sorry to hear about your tough times. but it is not this company's fault. ANY discharged debt is reported to the IRS as income. So it doesn't matter who you settle with you will get a 1099. That's the bad news. The good news is that the IRS has a form to reflect that it was not income. Your tax preparer/CPA should be able to help.
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