Factoring is the legitimate business practice of purchasing accounts receivable from another creditor who wishes to immediately convert their yet unreceived assets into immediate cash. It is simply a statment of a type of business they purport to conduct.
The issue with some debt collectors who state their business involves factoring is that they also report that when theiy receive the account, the consumer then has an installment loan with them. Purchase of an account does not convert a revolving account agreement to an installment account agreement with the new owner.
I would not dispute or file a complaint with the CFPB simply over thier assertion of being a factoring company unless you have clear evidence that they are not involved in that business. The real issue is their claim of an installment account with them when no such agreement exists.
