IBS CDV disputes: 1099-C With CITI and Dispute
It typically happens in IBS CDV disputes with CITI, that we find an inaccurate line item, also called a tradeline, in our credit report. This happens after form 1099-C is issued.
And the consumer receives the answer from the credit bureau that the creditor has verified that the balance is being reported correctly.
If we have more questions, and we normally do, because of the error in the report, we are forwarded to their physical mailbox IBS Cdv Disputes (the center located in Sioux Falls that reopened in 2022)
By this moment, the credit report also has the status “Consumer Disputes This Account”, and Account “Closed By Credit Grantor” that the consumer can find in the Additional Information title.
It is surprising that this situation is so common and by this stage of the situation, the bureaus were already provided with the form 1099-C.
Once form 1099 is issued, CITI (IBS CDV Disputes) must update their listings to reflect a zero balance. Form 1099 is issued by the lender and issues a copy to the consumer and another one to the IRS.
If this update of the listing is not completed after the release of form 1099, the consumer should be filing a 623 dispute against the original creditor, or file a complaint with the Consumer Financial Protection Bureau attaching a copy of that 1099 form to this new motion.
The 623 form is named after Section 623 of the Fair Credit Reporting Act and enables the consumer to dispute any inaccurate information on your credit report.
If the original creditor fails to respond adequately to the 623 dispute letter and the CFPB does not offer an adequate reply, the next step is to take legal action, as we explained with the tradeline DISP INVG COMP-RPT BY GRNTR or with any statement in the credit report that affects our creditworthiness and credit score.