A tax lien can be removed by simply sending a written affidavit to the Register of Deeds office in your county. You will receive a response from them stating that a tax lien can only be verified via a title search. The next step will be sending an affidavit to the credit bureaus requesting evidence of a verified tax lien from the original source. Attach a copy of the response from the Register of Deeds office with your letter to the credit bureaus.

First of all, they are not the original creditors. They are second and third party creditors. When they buy debt from the original creditor, they are usually buying a “screen shot” or paper. What this means, is they purchase a portfolio of accounts and they have the option to purchase copies of all the documentation with the file. This documentation does not come free, and can triple or quadruple the price of the portfolio. Collection agencies almost never purchase full documentation, so they are unable to provide legitimate validation. Third, they are buying accounts as a form of investment. If a debt is charged off by the original creditor, which means it has been removed from their balance sheet as uncollectible from the borrower. It must be validated according to the FDCPA should it come back in some other type of collection. That means a collection agency working for the original creditor or third party that purchased the account. Remember, there are times that a debt is used as a tax loss by a creditor. This means it cannot be collected at a later time as the collector would then obtain UNJUST ENRICHMENT.

Identity theft has been turned into a product. When you are the victim of identity theft you can place an initial fraud alert on your credit report. Putting a fraud alert on your credit file entitles you to a free copy of your credit report from each bureau every 90 days. You can also provide a statement requesting that you be contacted at the number provided in your consumer statement before any credit be granted. Limit access to your credit report with a security freeze. There may be a small fee for this depending on the state you reside. By law you are only liable for $50 dollars in unauthorized credit card charges. This is much better than paying a monthly fee to the credit bureaus.

The IRS considers forgiven or cancelled debt as income. Many creditors are following the practice of sending 1099-C forms (cancellation of debt), to consumers who have defaulted on their loans. Most creditors will charge an account off, after a 180 days past due. When the account has been charged off the creditor can 1099, the consumer. That means you have to pay taxes on that debt. To further harm the consumer financially, if a debt collector settles the debt for $600 dollars less than the original balance, they are required by law to file a 1099-C form with the IRS. This is more reason why you should not negotiate a settlement with the creditor or collection agency.