Newbie with a couple questions about factoring company accounts

[Anonymous]

hi, I have been reading and re reading the forum all evening. Midland funding is reporting on my reports as a factoring company account. On one report the accounts show closed, on the other they show open. These are old capital one accounts. Can I dispute these since they are not current accounts in good standing since they are listed as a factoring company account? If I can dispute them, do I send a letter/ email to the credit bureaus or midland funding? Thank you!

[gdale6]

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@Anonymous wrote:

hi, I have been reading and re reading the forum all evening. Midland funding is reporting on my reports as a factoring company account. On one report the accounts show closed, on the other they show open. These are old capital one accounts. Can I dispute these since they are not current accounts in good standing since they are listed as a factoring company account? If I can dispute them, do I send a letter/ email to the credit bureaus or midland funding? Thank you!

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You can choose a CRA or a direct dispute with Midland. If they are reporting a monthly payment history that definitely is a taboo. One thing though I would not go poking them if its still inside SOL and you cannot pay it off in full as they can still use the court system to get a judgment. The CFPB can sometimes get then to report as they should but there is no clear ruling from them on this subject as of yet.

[RobertEG]

They are a debt collector as defined under the FDCPA, as they are attempting to collect on a debt that was incurred with another party.

The issue of whehter they are also a factoring company is a side issue that is debatable, and not really relevant to whether they are a debt collector.

You can pursue a complaint as to their assertion that they are a factoring company, but it wont substantively matter as to requiring their deletion of the collection.

A factor is a party who purchases receivable assets from another party.  A factoring company normally purchased debt in good standing in order from a creditor who needs instant cash.  It is not a firmly decided fact that a pafty is not a factor if the debt is delinquent at time of their purchase.  It is also mot material to their credit reporting UNLESS they also make some othr reporting that IS clearly inaccurate, such as their common practice of reporting to a CRA that their purchase of the debt as a factor constututues the establishment of an installment loan with them.  i|f they report their colection as an installment accunt with you that you never signed, or they then report monthly delinquencies in your lack of pament of that "loan," then you DO have a clear and disputable inaccuracy under the FCRA.