Capitol One Services Extort money through fear and intimidation Richmond Virginia

He's generally correct here. Even better for you, once the debt is reported to the IRS and the 1099-C is sent to you, they are prohibited by federal statute from collecting on it or selling it to a collection agency that purchases bad debt outright. This is why in many cases, these bad debts are not reported to the IRS in the hope that assets will be discovered at a later date.

Banker John

I was not Defending Capital One as a lender/credit card company in my post. Personally, I do not utilize credit cards but am well informed as to the current exorbitant "loan shark" interest rates.

My statement, was that Capital One was correct in regard to any forgiven debt being considered reportable income. By informing a consumer of this they are not practicing extortion. Extortion is the use of a threat to cause harm by violence or obtaining property from another by criminal means. Notifying you of an IRS regulation does not constitute extortion.

I also never stated you are "judgement proof". Anyone can get a judgement against anyone else for a valid debt. Your SSI check cannot be garnished, as I stated clearly your bank account can.

I have been a loyal customer of The Capitol One Credit Nazis for over 20 years, until four years ago. They knew my source of income, SSI when I applied for these cards. I called once to ask why they kept upping my credit limit and I was told I was an EXPERIMENT Welcome to the NEW WORLD ORDER! Forget the government watch out for big business. ILK like this use to be called The Mafia or loan sharks, today their called big business. ALL PERFECTLY LEGAL.

With Capitol One I owed approx. $10,000.00 less than four years ago.

With Capitol One cards the increasing high interest, over limit fees and late fees this consumer credit debit is over $24,000.00 and still growing.

I don't think the IRS 1099-C rule would help me?

If they forgive this loan wouldn't I have to pay income taxes on $24,000.00?
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PS STOP TELLING ME I'M JUDGMENT PROOF!

I already lost a judgment in October 2006 for the credit card with FNANB through a collection agency the high loan amount on the card was only $730.00 they were granted a judgment for over $5,000.00. I made curtain their attorney knows I'm on SSI. I'm waiting for a letter of examination from the court or for them to just seize by bank accounts any day now without warning. I would than have to file a claim of exemption with the court through the sheriffs office. This I was told takes weeks in the mean time I would not have money to pay basic bills like rent and utilities.

There is no ripoff here. In reality, Capital Scum (one) was being honest. If a debt of $500.00 or more is "forgiven" it is considered income by the IRS and must be reported as such.

Two things to consider:

One. If you are on SSI as your sole source of income, tell them to forgive the debt. The only taxable income you will have is $600.00 - too low an amount for any taxes to be due on.

Two. If they do "forgive" the debt, it is HIGHLY likely it will next go to a collection agency. It will continue to follow you for years. Although the collection agency cannot garnish your SSI income, if they get a judgement and find your bank, the bank may give them the funds.