This is in the state of Arkansas.
I got a call from a company by the name of CRA, they said it is not an acronym for anything. They stated they are not a collection agency or anything like that but some other kind of company. They reported that I have an old debt with Citibank on a MasterCard. They said the original credit limit was $1000 the ending balance was $1400 but the balance I owe is $3415 with fees, interest, etc. They said the account was opened in 1999 and the last payment was made on the account in 2002.
They said they are going to file a tax lien (1099-C) if I do not settle this debt with them today for $503.12 by 5:00 PM EDT (I thought they were not a collection agency!?!?!) The person I spoke to said that because of the Arkansas tax rate, that I would be liable for about $1500. They then tell me that this will stay on my credit report for 15 years but if I settle they will report to all 3 bureaus that it is paid balance. I personally do not remember this card/debt at all. I then asked them to mail me some type of verification on the debt but they said 20+ mailings had already been sent out and they cannot send another and were going to process this tax lien right away unless I agreed to settle. I have moved several different times between 3 different cities since then so it is possible I could have missed whatever they said was actually sent.
My question is what does this all mean? What if I do not settle? Why can/will they not send me some type of verification? If they file the 1099-C with the IRS, what does that mean when I am completing my tax information in 2010? What if I did settle without some type of verification the debt is actually mine? Is the debt truly settled then or is the amount I did not settle for sent to some collection agency, filed with the IRS, etc.?
Any help is greatly appreciated. Thanks.