Where a dunning letter included a clause stating that the creditor may file a 1099C with the IRS in the cases of settled debt, the language was plausibly misleading and the U.S. District Court was reversed.The 7th U.S. Circuit Court of Appeals reversed a decision by U.S. District Judge William C. Griesbach, Eastern District of Wisconsin.Capital Management Services L.P. is a debt collector. Like most debt collectors, CMS sends out form letters to debtors hoping to convince them to pay what they owe on their debt. Although …