Is Asset Acceptance a Factoring Company?

[Anonymous]

Trying to clean up my Fiances credit report and she has a collection with Asset Acceptance that is labeled as:

Loan Type: Open Account - Factoring Company Account.

Are they allowed to report this way on a debt of a Revolving account they bought from Capital One ?

[guiness56]

No, they are not a factoring company, they are a collection agency.

I think some CAs report that way, (because they buy accounts), hoping not to have to comply with the FDCPA.  But, the CRAs know they are CA and treat them as such.

A true factoring company does not buy debts in arrears.

[Anonymous]

Thanks for the reply guiness.

So does that make this a violation and therefore grounds for removal from the CR?

[guiness56]

I doubt it.  You can try to dispute it but I do not recommend doing that.  Disputing can sometimes cause more damage than good.

Them reporting like that has no affect on how FICO sees the account.  It is still seen as a collection.