Long Beach Acceptance Corporation tax scam and harrassment Los Angeles California

I financed a new car with Long Beach Acceptance Corp February 15, 2001. My first payment was due April 1 and was paid on time.

On April 11, 2001, I was involved in a car accident which was not my fault. The car was totalled. I received a check from Hartford Insurance for 13,750 which I immediately signed and sent to them before the May 1 payment was due. I owed an additional amount, which would be paid for by the Gap Insurance policy I had purchased. I enclosed a letter explaining what had happened and telling them how the account would be paid off.

Starting the first week of May, they called me every day demanding my regular car payment. I told them what happened, and said that the 13,750 should be payment enough until the gap insurance paid. They said no, and that I must keep making payments until the gap insurance paid. I went through 2 months of daily nasty calls - during a time when I was in a great deal of pain and suffering from my injuries - and of which they were aware.

When the gap insurance finally paid, I thought I was through with them. Wrong!! Now I get a letter from IRS. It seems that Long Beach reported that they "forgave" this debt, which would make me liable to pay taxes on it. Now I have to prove to the IRS that they are lying and they did indeed receive their blood money in full. If I cannot prove my point, I will have to pay IRS $1700.

Beverly
Buckeye, Arizona
U.S.A.