Consumer complaint received 2016-03-03
Company: JPMORGAN CHASE & CO.
State: MD
Product: Credit card
Issue: Other

Complaint:
Long story short. I had a Chase credit card for several years. I ran into serious financial trouble ( including foreclosure and severe HOA fee judgement ) and was unable to pay. Chase did not accept any of my attempts at settlement or reduction, and I had no money to keep paying. From XXXX, I was unable to make payments. Chase initially " charged off '' my account but kept it active. I understand this. However, unexpectedly, I received a letter from Chase and an official XXXX " Cancellation of Debt '' form stating that on XXXX XXXX, XXXX, Chase cancelled my debt, and reported it legally and officially to the IRS with a notification to me. I found this out XXXX of THIS year, XXXX. After consulting with legal and tax help, I was informed Chase had *officially* cancelled AND discharged my debt. I was then responsible to file it on this year 's taxes as INCOME and be forced to pay taxes and deal with the amount of money they forgave. I did so, and included the cancelled debt on the XXXX as income and dealt with it appropriately. The documentation specifically, legally says that Chase Bank NA has ( quote ) " CANCELLED '' and " DISCHARGED '' the entire outstanding debt that I was unable to keep paying, of {$9500.00}. This amount listed on the XXXX is the principal, because that form does not include interest. The total amount of debt including the interest was {$10000.00}. 
In XXXX, after learning this, I have been attempting to clean up my credit, pay off outstanding balances, and try to change my life for the better. My credit is poor, and I understand this. However, I found that when I applied for a small loan, I was denied largely because my credit union informed me that a huge outstanding balance of {$10000.00} was on my credit reports. Not only that, it was listed as an ACTIVE balance and was being updated monthly as PAST DUE. I got a copy of my report, and since XXXX XXXX when they cancelled the debt and reported it legally as such, they STILL report it EVERY MONTH to all XXXX credit reporting agencies as active, unpaid debt with a past-due balance. I was enraged! Over the past 3 weeks, I have contacted all XXXX credit reporting agencies and filed a dispute, and included all documentation. I understand the nuances and technical terms here -- -my account was charged off, but this is different, the debt is not CANCELLED. It reports as charged off, past due. They can not cancel a debt, report it to the IRS, tell me it 's cancelled in writing, make me pay taxes on it AS INCOME..and then say it is still an unpaid debt that is PAST DUE! All XXXX credit agencies agreed with my documentation, and changed the status to a XXXX balance and NOT past due. The prior negative credit reporting prior to XXXX XXXX, XXXX still stands, and this is fine and understandable. But the balance is XXXX, and historical record of past due payments on my reports stopped in XXXX. 
Fast forward to present. Just 2 days after my reports were corrected, Chase AGAIN filed a new update stating I have an unpaid, late, past-due balance of {$10000.00}. I called Chase to complain, and 2 supervisors told me point blank that Chase will continue to report it, every month, to all XXXX credit agencies FOREVER until I pay it all off. They sent me a document dated XXXX/XXXX/XXXX stating this as well. I was furious. I called all XXXX credit bureaus, and they said they can not stop Chase from doing it, I would need to file a new dispute EVERY MONTH. Or, contact the CFPB, FTC, or attorney general. 
So, Chase completely cancelled and discharged my debt, reported it to the IRS, yet still ruins my credit EVERY MONTH. This is NOT the negative reporting " 7 years '' until it falls off, this is NEW month to month fraudulent reporting because they can, and wo n't change. It is killing my credit. I am furious with them. I am out of characters to explain. PLEASE HELP.

Company response to consumer: Closed with explanation