U.S.Credit Card Trouble

For just about anything you want to get off your chest about credit cards.
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daveleonard
 
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U.S.Credit Card Trouble

Postby daveleonard » Sat Mar 12, 2016 2:16 pm

I have been in the Philippines since 2003. Before I left the States I paid all my balances and came to the Philippines. I had one credit card but paid that off.
In 2014 I was doing research on places to rent because I planned to return to the States to get a divorce from my Philippine wife. I took advantage of a free credit search just to see what it said. I found that there was a credit report of an unpaid balance on my account which had been reported to the credit bureau. I called the credit card company and the lady said that my account had been closed in 2006 for none payment and the balance was written off. I did not know of any charges other than what I paid off. I found out that my separated wife did some jewelry buying to the tune of $800 that she never told me about. I immediately sent a letter to the card company and told them it was an honest error and that I would pay the balance just send me the paper work. I never heard back from them.

They re-opened that suspended and written off account, charged me interest for the last ten years and wrote it off on their 2014 income tax which of course showed up on my IRS account as a cancel debt which I must figure as income on my 2014 tax return.
This is a big crisis for me because I live on my social security benefit and a small $320 pension. The card company charged interest on that $800 balance and it turned into $24,041 that they took off their tax and advised IRS and I got the cancel debt.
When I wrote the letter to them in 2014 they had my address yet I never received a notice of this action and did not find out about it until my 1040 was sent back by the IRS and the cancel debt revealed.
I earn approx $15,000 on social security, and $320 in a small pension. I have no job here in the Philippines, investments, business or any other income.
This means my income goes from about $18,000 paying no taxes to $49,000 and owing the IRS about $12,000. It will take me likely the rest of my natural life to pay this off, that is if they let me make payments on it. I am 70 years old now.

Is this right for a credit card company to do? It seems to me if they absorbed the $800 in 2005 that they would have had to take the $800 off their taxes as a loss in that year and not re-open the case ten years later or so adding interest to their advantage and taking off $24,000 in 2014 on their taxes.
Any advice? Thanks, Dave


Nixon
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Re: U.S.Credit Card Trouble

Postby Nixon » Sat Mar 12, 2016 4:36 pm

Should have told them to buzz off. Debt was most likely wayyyy past SOL.
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Elijahmex
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Re: U.S.Credit Card Trouble

Postby Elijahmex » Sat Mar 12, 2016 6:20 pm

I think you made it worse by sending a letter. I was in a similar situation (ID theft). I found out 9 years later that someone used a Credit Card with my name with a similar amount 800 and change. In total it after interest it was just shy of 1,500$.

All I did was contact the credit bureaux, told them my story how it wasnt me etc... they ran their investigations and within a month it was history, deleted off my credit reports. This is what you should have done because after so many years they don't care about a small amout like 800$.

What you should do now? I have no idea.
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takeshi
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Re: U.S.Credit Card Trouble

Postby takeshi » Mon Mar 14, 2016 9:15 am

I'd suggest a site with a more active Rebuilding area. Try Credit Boards and/or myFICO.

Tubpbs
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Re: U.S.Credit Card Trouble

Postby Tubpbs » Mon Mar 14, 2016 2:37 pm

I would contact a tax attorney.
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daveleonard
 
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Re: U.S.Credit Card Trouble

Postby daveleonard » Tue Mar 15, 2016 1:20 am

Not any tax attorneys here in the Philippines and certainly none on this tiny island I live on. This is why I am trying everything I can to get any advice but the IRS isn't going to wait long. But I do have some time and after I get the final verdict from the IRS I will try the Tax Advocate route. I just wanted to know if a credit card company can do this after ten plus years.
Thanks.

Tubpbs
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Re: U.S.Credit Card Trouble

Postby Tubpbs » Tue Mar 15, 2016 11:53 am

daveleonard wrote:Not any tax attorneys here in the Philippines and certainly none on this tiny island I live on. This is why I am trying everything I can to get any advice but the IRS isn't going to wait long. But I do have some time and after I get the final verdict from the IRS I will try the Tax Advocate route. I just wanted to know if a credit card company can do this after ten plus years.
Thanks.


Why not just stay there?

Also, anyone can do anything as I'm sure you're realizing...it sucks, but as they say "anyone can sure anyone for a ham sandwich" - they won't win, but it will cost everyone money and you can't do that much about I except throw more money at it ( which is stupid and doesn't seem like an option for you anyway).

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