Orchard/HSBC Visa CO, Portfolio CA as Factoring Account - Don't know how to handle. Need advice

[SusieQ]

Orchard/HSBC Visa Charge Off  - $0 balance       DOFC 2/26/10     (SOL expires in 4 month)   Comments:  Account transferred or sold

Porfolio Recovery reporting as a factored account for $2200 on Experian and Equifax.  

Showing in installment loan on both, open date 4/2011, current status 120 days late.

Reported as collection account on Transunion.

I don't want to wake a sleeping giant yet due to SOL not expired and the amount is $2200.  

But I do want to start planning on how to attack this beast.   PFD to Portfolio?   Dispute with EX and EQ regarding how reported?    Will the OC mark it "Charge Off - Pd after collection"

[madmann26]

Oh boy,

A few people on here have had success with getting them to delete the tradeline, however, this was for paid accounts. I am in the process now of trying to get it deleted for the umpteenth time.

I'll say this, PRA can only list the debt as a factoring account if the account was legitimate and in good standing when it was sold or transferred to them. It also appears that the bulk of this debt should be commercial in nature.  With that being said, the way they list it is shady as hell. I would recommend the following actions:

1. Read this thread - edited

2. File a complaint with the FTC and include an exert from your CR showing how it is listed.

3. File a complaint with the BBB and reference the lingo from the post above.

4. Let us know how it turns out.

I am in the process now with the BBB. I haven't heard anything yet but I have high hopes.

Links to certain credit repair-like sites, like to CB, aren't allowed - llecs, myFICO moderator

[SusieQ]

thank you!   should I wait til SOL expires before starting with the factoring listing?

[RobertEG]

I assume from the post that this all involves the same debt, with Orchard/HSBC as the OC, and Porffolio is the new owner of the debt.

Portfolio, having purchased delinquent debt, meets the definition of a factoring agent.  That is what factors do... purchase delinquent debt at a discount, with the legal ability to then attempt collection on the full amount. 

They are also, under the FDCPA, clearly a debt collector.  I see no substantive error except for their reporting the debt as now being an installment loan with the consumer. 

They apparently take the position that being a factor somehow enables them to report the debt as installment.  Other debt collectors have taken the same approach.

I see no basis for that interpretation, and consider it to be a disputable issue.  Perchance, the CRA will intervene and provide a definitive decision in their reinvestigation of such as dispute as to what is the proper reporting status.

However, in my opinion, such a dispute would only result in updating of the debt status to whatever code the CRA deems accurate.  Resolution of any dispute always provides, as the first remedy, for correction of any inaccuracy.  It does not require deletion of the reported information unless its accuracy cannot be corrected.

Thus, I dont see a dispute leading to deletion of the collection based on an inaccuracy in one aspect of its reporting.  It would certainly be of benefit to others here on the site to finally get a definitive CRA reinvestigation decision as to the accuracy of this type of reporting, so I urge you on!

How you choose to attack the debt itself has options, depending upon your current goal.

If your immediate goal is to prevent them from pestering you, and you are still within 30 days of their dunning notice, then you could send them a DV.

However, I note an open date for their collection of 4/2011, and presume they sent dunning notice around that time, so most likely, your right to invoke a cease collection bar on them by sending a DV has expired.

If you are sure of your state SOL statute and resulting expiration within 4 months, I think you would be wise to wait before taking further action.

PFD is probably the best option therafter, as with a DOFD of 2/2010, its CR exclusion date wont arrive until 8/2017.  Much to be gained by earlier deletion.

As for the OC, they are out of the picture.  It's subsequent payment status if of no concern to them.  They were already required, upon sale of the debt, to have updated their reporting to $0 balance due.  If they have not yet done so, I would contact them and advise them of that responsibility.  With no debt, they have no obligation to report any payment or non-payment.  Their account terminated with a status of charged-off, and once they report a $0 debt now owed to them, their credit reporting obligations are terminated.

[SusieQ]

my problem is that Portfolio is reporting as a closed installment loan.   each month balance is in utilization and gets updated  monthly with derogatory lates like an OC.

[Shogun]

I've had luck deleting Portfolio due to some of the factors you have listed.  You might want to check into a BBB complaint.

[mmmagique]

Shogun, could you elaborate more on this, or give us a link to your thread(s)? Please and thank you! 

[Shogun]

My account was listed as factoring company, open, had lates added to it.  But the real baddie on mine was that the DOFD was aged 4 years later than the OC.  I filed a complaint with the BBC and Portfolio was quite prompt and cordial in stating their deletion.

[SusieQ]

thank you.   good to know!

[SusieQ]

something I just learned about junk debt buyers per laws of my state - North Carolina:

The North Carolina Senate Bill 974 - Debt Buyer is a Collection Agency under NC law

The bill incorporates a debt buyer under the definition of a collection agency and specifically defines a debt buyer as a person or entity engaged in the business of purchasing delinquent or charged-off consumer loans or consumer credit accounts, or other delinquent consumer debt for collection purposes, whether it collects the debt itself or hires a third party for collection or an attorney-at-law for litigation in order to collect such debt. SB 974 dictates both active and passive asset buyers are considered a collection agency.

http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S974v5.pdf

I will be using this when SOL expires in a few short months.   But thought it might be helpful to other NC residents in this same situation.