01-06-2013 09:35 AM - edited 01-06-2013 09:37 AM
Factoring is a perfectly legal business practice, and simply reporting as a factoring company is accurate. It informs that they own the debt.
However, the secondary issue that arises is when a factor asserts, based on their purchase of the debt, that the consumer now has an account, such as an installment loan, with them. That seems to be a growing practice with some debt collectors.
They are a debt collector subject to the FDCPA. You dont have an account agreement with them, and they cannot report delinquencies
If reporting as a factor is accompanied by reporting of an account with the consumer or delinquencies on that "account," that is where they cross the line.
01-06-2013 11:25 AM
Technically, they can. Should they? No. A factoring company by definition buys good debts or portfolios from the OC to generate cash flow for the OC. They are really CAs. Now, they can report as a factoring company, it's what they do with that that may bring things into question. Seeing as they can report as an OC using this ability, they sometimes do things that are beyond the scopes of the CA. When this happens, you can fight them on it.
01-06-2013 11:31 AM
01-06-2013 11:43 AM
Fighting them for listing as a factoring company is pointless. Like said before, it's if they use that listing to report incorrectly that you can use to fight them. Such as changing the settings set forth by the OC. Changing the DOFD, changing the type of account, etc.
01-06-2013 11:52 AM
I had asset acceptance listing as a factoring company, and listing as open account and 120+ days late to my CR
I had to file a complaint with the BBB but that did the trick they deleted
01-06-2013 01:05 PM
They were listing lates as a CA. That's a No No.