hey, trying to help my friends fix their credit, and they refused a tax form that a company “ditech” forgave about 5k of debt against them this year. they didn’t recognize the debt or the creditor. i understand the debt may have been transferred, but they have nothing on their credit report even close to that amount of debt. it supposedly happened december of this year, and they have no correspondence from them.
my suspicion is this could be a shady practice of companies claiming to forgive debt, that doesn’t exist or maybe that they just bought cheaply, to offset their income for the year. is this a thing that happens? can you “verify” this in the same way you would a credit collector? the company’s hung up on them twice when they’ve called to inquire about it.
obviously the additional taxes would be a hit- especially if it was never their debt, or debt the company could have never collected, because it’s past sol, they don’t think they actually should recognize the “income”