topic Re: Got Cut off from QVC in Q Talk

Got Cut off from QVC

Critter Friend — Thu, 26 Aug 2021 15:19:58 GMT

Due to being laid off I missed a few payments on my Qcard. They offered me a settlement to clear and close the account and I accepted it. I paid the amount and the account was closed. Now I have received a letter that my account with QVC is closed and I am not able to purchase anything regardless the method of payment. Not fussing, this is their rule. Just wanted to pass along info incase someone else was thinking about doing the same thing.

Re: Got Cut off from QVC

Kachina624 — Thu, 26 Aug 2021 15:30:05 GMT

@Critter Friend It's always sad to hear of someone who has had a reversal of fortune and has fallen on hard times. I hope things are better for you now and you've either returned to work or have found a new job. There have been many people in your situation.

Re: Got Cut off from QVC

millieshops — Thu, 26 Aug 2021 15:32:05 GMT

@Critter Friend do check your credit ratings - missing payments could have repercussions outside of qvc and synchrony if the missed payments showed up at the rating companies.

I don't know whether that reporting comes from the selling company or the credit card company. My guess is that if it was reported, it's from the credit card company.

Re: Got Cut off from QVC

KingstonsMom — Thu, 26 Aug 2021 15:59:23 GMT

@millieshops

Yes, the 'creditor' (in this case Synchrony Bank) is the one to report it the credit bureaus.

I know from prior issues with Synchrony Bank and a family member, they will affect your credit rating whether you agreed to a "settlement" or not.

They still lost money on you, they already paid QVC.

Re: Got Cut off from QVC

Meowingkitty — Thu, 26 Aug 2021 16:09:03 GMT

And any amount that was forgiven you will have to pay taxes on next year. If your bill was $5000 and you settled for $1000 you will owe taxes on $4000.

Re: Got Cut off from QVC

Suzeecat — Thu, 26 Aug 2021 16:17:31 GMT

@Meowingkitty wrote:
And any amount that was forgiven you will have to pay taxes on next year. If your bill was $5000 and you settled for $1000 you will owe taxes on $4000.

Ouch! Nothing like kicking someone when they're down . . .

Re: Got Cut off from QVC

Lipstickdiva — Thu, 26 Aug 2021 16:26:42 GMT

@Suzeecat wrote:
@Meowingkitty wrote:
And any amount that was forgiven you will have to pay taxes on next year. If your bill was $5000 and you settled for $1000 you will owe taxes on $4000.
Ouch! Nothing like kicking someone when they're down . . .

A lot of people don't do this unless they receive a 1099-C from the company forgiving the debt. Some don't know they have to claim it as income and some don't because they figure the IRS will never know if a 1099-C isn't issued.

Re: Got Cut off from QVC

KingstonsMom — Thu, 26 Aug 2021 16:35:51 GMT

@Suzeecat wrote:
@Meowingkitty wrote:
And any amount that was forgiven you will have to pay taxes on next year. If your bill was $5000 and you settled for $1000 you will owe taxes on $4000.
Ouch! Nothing like kicking someone when they're down . . .

@Suzeecat

It's not a matter of "kicking someone when they're down", it's a matter of being realistic about this situation.

Re: Got Cut off from QVC

Citrine1 — Thu, 26 Aug 2021 16:55:19 GMT

@KingstonsMom I don't think @Suzeecat was referring to you when she made that comment. I think she means the IRS is "kicking someone when they're down".

Re: Got Cut off from QVC

ladyann45 — Thu, 26 Aug 2021 17:37:08 GMT

This is the reality of a settlement and most people don't realize that it will be charged back to them as income. I see it every year and I have to caution people to be careful with these credit card settlements because it is not in your favor. I hope it will balance out for you at tax time, also these credit card people also know that they will be posting that amount to the IRS. You may have come out better at looking at consolidationg your credit cards which may have worked out better for you.

Re: Got Cut off from QVC

Suzeecat — Thu, 26 Aug 2021 17:43:34 GMT

@Citrine1 wrote:
@KingstonsMom I don't think @Suzeecat was referring to you when she made that comment. I think she means the IRS is "kicking someone when they're down".

Exactly. It's clear that someone is experiencing cash flow problems, and the IRS forces them to pay even more $$$. If that amount couldn't be paid and had to be written off, how the heck is the person supposed to pay taxes on it?

Re: Got Cut off from QVC

Renata22 — Thu, 26 Aug 2021 17:44:52 GMT

@Critter Friend I'm sorry you're going through this and hope things get better soon.

Re: Got Cut off from QVC

Love my grandkids — Thu, 26 Aug 2021 18:05:14 GMT

@Critter Friend I'm sorry this happened and hope things are going better for you now.

Re: Got Cut off from QVC

millieshops — Thu, 26 Aug 2021 19:21:32 GMT

@KingstonsMom glad someone who really knows chimed in here. I do not use QVC's card nor any other Synchrony cards, but I know some card companies react very fast when even one payment is a day late and some send a late message so that the user can catch up or explain before there are repercussions.

I didn't go back to read the original post, but I don't believe OP said she had called Synchrony to tell them why she was late and find out what new laws applied to her because of the COVID situation. That call might also have helped.

Re: Got Cut off from QVC

Luvsmyfam — Thu, 26 Aug 2021 19:34:14 GMT

critter friend,I hope things start to look up for you soon.maybe it is a blessing in diguise.good luck to you

Re: Got Cut off from QVC

Venezia — Fri, 27 Aug 2021 01:19:51 GMT

I don't think the IRS is the evil villain in this. There may be many factors at play, when someone gets into a situation like this, but tax laws are not made based on a single incident.

Anything that counts as income (such as winning a gift card or other prize in a contest) is taxable. And having what is essentially a rebate, caused by accepting a settlement, is income.

It may have been better for the OP or anyone in this situation to have contacted the CC company to work out a repayment deal instead of a settlement.

But we actually know very few facts in this case.

Re: Got Cut off from QVC

Suzeecat — Thu, 26 Aug 2021 20:14:00 GMT

Bottom line, credit card debt is evil! It's always best to only purchase what can be paid for without incurring finance charges or other charges.

Re: Got Cut off from QVC

Teddixat — Thu, 26 Aug 2021 21:01:39 GMT

@Critter Friend I am sorry about that Critter Friend. I don't understand why you can't buy something with a check or money order. Anyway, I know it's tough to have be en laid off and not being able to work out a better solution

Re: Got Cut off from QVC

Critter Friend — Thu, 26 Aug 2021 21:14:59 GMT

Thank you all for your positive comments. Now I know why they suggested for me to consult a tax attorney, but who has one of those?? Will have to see how this shakes out at the end of the year tax wise.

I am good now, back to work. Sold my house, which was in the plan anyway. Credit is in tact, mostly.

Thank you again.

Re: Got Cut off from QVC

Danilova2 — Fri, 27 Aug 2021 03:22:57 GMT

This really isn’t the place for legal or tax advice. Having said that the OP, who unfortunately has fallen on rough times, might want to explore whether she is eligible for the insolvency exception to having to include the unpaid portion of the credit card debt into income. Some information can be found at https://www.irs.gov/newsroom/what-if-i-am-insolvent