Citibank issued a 1099C cancellation of debt to me on 2/24/2012. I filed this with my taxes on 4/15/2013 increasing my income by the FULL amount of the debt. I am in the process of trying to buy a house and the debt is still showing as owed monies on the credit report. I have called Citi several times and they acknowledge the 1099C being issued and that it was a cancellation of debt but when I ask them to report this to the credit bureaus they say I still owe the money plus some. Is this legal for them to ask me to pay back this loan when they issued a 1099C on it?