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Client made monthly payments to a debt relief company for 36 months

Glossy847
Level 3

However he received a 1099C from the bank which indicated the debt relief company did not pay them much of what the client sent in and now they cannot contact that company - website is gone, cannot login to their portal. Any recourse for them?  I suggested contacting Consumer Financial Protection Bureau.  Any other suggestions?

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2 Comments 2
BobKamman
Level 15

The bank must have accepted the amount they received and agreed to write off the rest.  Try using the insolvency exception on Form 982.  

Glossy847
Level 3

Thank you for your suggestion.  I will see if that helps them

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