Consumer complaint received 2024-08-02
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: Servatus Corporation (TX)

On XX/XX/XXXX I received a notification that my credit score had dropped due to an account being added. Upon checking it I found that a collection was reported on my credit reports by a collection company Credit Solutions Corp XXXX XXXX XXXX XXXX XXXX XXXX in the amount of {$5400.00}. 

XXXX XXXX XXXX XXXX never responded to the Billing Error and Rescission Affidavit sent to them on XX/XX/XXXX Ive never received any notification from this company to be able to dispute and request verification. 

Upon checking the Original creditor is required under IRS Section 6050P : Bad Debt Deduction ( IRC Section 166 ) Deduction Eligibility : Companies can deduct bad debts that become wholly or partially worthless during the taxable year. 
The deduction is taken in the year the debt becomes worthless and is written off. 
Documentation : Proper documentation must be maintained to substantiate the deduction, including records of the debt, collection efforts, and the decision to write off the debt. 
Steps for Compliance Identify and Write Off Uncollectible Receivables : Regularly review accounts receivable for collectability and write off those deemed uncollectible according to company policies and XXXX. 
Record the Write-Off : Adjust financial statements to reflect the write-off, recognizing the loss in the income statement and adjusting the allowance for doubtful accounts on the balance sheet. 
File Form 1099-C : Prepare and file Form 1099-C with the IRS for any discharged debt of {$600.00} or more. 
Provide a copy of Form 1099-C to the debtor.

Maintain Documentation : Keep detailed records of the write-off process, including collection efforts, the decision-making process, and the recording of the write-off. 
Disclose Information in Financial Statements : Provide required disclosures about bad debt expense, write-offs, and methodologies in the notes to the financial statements. 

The original creditor is in violation of these requirements by selling the account to a XXXX party debt collector. 

XXXX XXXX XXXX XXXX IS COPYRIGHTED and as such I XXXX XXXX XXXX XXXX the living soul man and beneficiary to the XXXX Trust account for XXXX XXXX XXXX XXXX and any variation of it, never gave either party permission to use the copyrighted property. When XXXX XXXX XXXX XXXX sold the personal, copyrighted property, account that is part of the XXXX Trust for XXXX XXXX XXXX XXXX to Credit Solutions Corp they violated the copyrighted notice ( See attached ) and there is a {>= $1,000,000} XXXX XXXX registered with the XXXX. 

It has also come to my attention that the original application with XXXX XXXX XXXX XXXX has been bonded as a security with the SEC without my knowledge and that all interest coupons attached to the bond sent every month were cashed in by XXXX XXXX XXXX XXXX with US Treasury without my knowledge. 

No company can charge off an account that was already paid and if they do charge it off they are required by the IRS to report it as a expensive and send out a 1099-C, there is no except as these companies claim. Its also a violation of the XXXX rules ( XXXX XXXX and XXXX XXXX ). The XXXX should audit this credit Union for not following IRS and XXXX requirements. 

These 3rd party collection companies are violating Federal and States Laws when buying these accounts for pennies on the dollar and trying to collect the full amount that was discharged by the Original Company. 

Also XXXX  XXXX XXXX XXXX is in violation of the Texas Data Privacy and Security Act ( TDPSA ), since they sold personal information to Credit Solutions Corp by not getting my permission.