HSBC may be involved in more fraud. They claim they monitor mortgage fraud but this one suspects they may be perpetrating it instead. Here is a customer report:
I received a 1099c yesterday for $68,000.00. It says that if the cancellation of debt was through bankruptcy, you do not have to pay taxes on it. Box 6 said “Bankruptcy-if checked-yes.” They did not check the box. So my CPA and I did a conference call today with Household. The Bankruptcy Dept. would not speak to us even though the guy who answered the phone really did seem to try to get them to. He said that the Bankruptcy Department pulled up our account and told him that according to their records, they had “Requested relief from being included in our bankruptcy, and the court had granted them that. So the debt was never discharged.”
I called my attorney, and he said that they had filed a relief from Automatic Stay, but that was normal and certainly did not remove them from the bankruptcy. The debt was indeed discharged in January 2004, and it is fraudulent for Household to file forms with the IRS with inaccurate information. He said that it looks like Household is lying to get me to pay the taxes so they don’t have to, and I am protected under bankruptcy law. Isn’t THIS TAX FRAUD?? They had also tacked on an extra $21,000.00 to the 1099c. When I talked to Household, they said that because the debt had not been discharged, I owed mortgage payments for 10 months that the property was no longer in my ownership. That is on my credit report, and I’ve got to get it off.
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