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Collections Law/1099 Debt cancellation


QUESTION: Mr. Miller, I hope you can help me with this question and I appreciate any insight you can give me. I received a 1099C for cancellation of debt in the mail from Pinnacle Credit Services LLC. It's in my father's name and has his social on it but sent to my address. My father is 93 years old and has had maybe one small credit card which he only used for travel. We ran his credit reports and this is not on any of them. What should I do? We don't want any trouble with the IRS. Thank you for your help in this matter.

ANSWER: Hello David.

When a debt is charged off it is then considered income and thus, is reported to the IRS on form 1099. Your father is at the age where is probably does not file a return anymore.  Unless your father has income above SS and the 1099 is a huge amount, your father will still not file a tax return and should not be concerned with the 1099.

I would advise that you talk with your father about this 1099 and see if he knows what the debt is related to.  Then he needs to call Pinnacle Credit Services and see what they have to say.  He can give them permission to talk to you about the debt. DO NOT let them trick you into agreeing to pay this debt.  It is not your debt and you are not responsible for it. This may not be his debt and if it's not, he should dispute it with the collection agency immediately.

If you need further assistance with this matter please let me know.  I will be happy to help you resolve this matter any way I can.  I hope the remainder of your weekend is pleasant and relaxing.

Oh, it's not Mr. Miller.  I am just plain old Ray.   😎

---------- FOLLOW-UP ----------

QUESTION: Thank you Ray, it's not my father's debt but I put all the information into Turbo Tax and he would not owe any taxes even though the amount is $18k. They have no other income which is taxable. Being that's the case, do you think it would be worth it to screw around with Pinnacle to dispute it? I went through a situation years ago where this company was trying to collect an old debt that wasn't mine. Took me 2 years but they finally admitted that they couldn't tie the debt to me. Thanks again!


You are certainly welcome.  The people you are dealing with are the bottom feeders of the industry.  If your father does not own any real property that a judgment could be placed against then there is nothing  Pinnacle Credit Services can do. I never suggest that people do not  pay their bills but, it sounds like they have given up on this one. Your father is 93 years old and in my opinion, should enjoy the time he haas left with his family and not arguing with a debt collector. As I said, this is my personal opinion and not my professional one.  

I hope your father is doing well and that I have been of some assistance.  Have a great weekend!!  😃

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Ray A Miller


I am qualified to answer questions on the following subjects: FDCPA, FCRA and HIPAA as well as medical collections, general collections and collection agency related issues. I trained these subjects at a nationwide collection agency and customer service call center and audited around 150 representatives for compliance to the laws. I have been in the Collections Industry for over 30 years. I feel that everyone deserves to be treated fairly and with compassion and that is the way I trained collectors. Even though I worked for a Collection Agency, I get great satisfaction in helping those who have been mistreated or in need of help with these confusing issues.


I was the Compliance Administrator with a nationwide collection agency and customer service call center-I have trained hundreds of collectors on the above referenced topics. I have been in the medical collections industry for over twenty years and research these topics on a daily basis.

ACA International

Some college ACA Certified Collection Specialist

Past/Present Clients
I am retired due to medical conditions and spend a good deal of time keeping current on collection issues.

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