General Credit Topics

[72]

Can a collection agency report a debt as a revolving account monthly. FTC says they could if it was on original revolving account, I have read here that they can't. Which one is it.

[RobertEG]

Kinda confusing, as OC and collection "accounts" are apples and oranges.

The debt is not the type of credit.  Consumers dont have "accounts" with a debt collector.  Collections are reporting accounts between the debt collector and the CRA.

You dont have payment terms and billing due dates with a debt collector, and dont have installment, revolving, or open credit with them.  The terms under which a debt is established is based on the consumer account agreement with the creditor.

When a debt collector reports the type of debt, they are simply reporting information obtained from the OC.

So the FTC opinion, as much as I can tell without reading it, seems to parrot the fact that if the debt with the OC was incurred under a revolving credit agreement with them, then the debt collector can state as such.  I really dont see an issue of substance, unless the agreement with the OC was installment, and the debt collector is reporting it as having been established under revolving terms of credit.

[72]

The collection agency in question is LVNV. They jacked up my util from 2% to 90% on 8k worth of junk debt that they bought. Needless to say my score nosedived 80+ points. They are reporting as ''factoring accounts", BBB is already involved, no dunning letters, been trying to validate since Oct 2011.

[RobertEG]

"FDCPA 808.  Unfair practices

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt.

Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation)

unless such amount is expressly authorized by the agreement creating the debt or permitted by law."

Pretty clear.  Ask them to show you explicit terms in your agreement with the OC that authorized this interest, or provide a specifc section of the civil code in your jurisdiction that permits them to collect on that interest.  Until such authorization is provided, they are conducting an unfair debt collection practice under section 808(1).

[72]

Thanks Robert, great info!!!

[AndySoCal]

Looks Like the OC is still charge interest and fees per the agreement.  Is the OC still reporting the debt?

[72]

OC reporting as chargeoff 0 balance.