@RobertEG wrote:
There is no question that there is a difference between companies that deal in factoring vs those who deal as debt collectors.
Factoring companies deal with providing quick $$ to companies for their accounts receivable, and top dollar is paid for accounts that are in good-standing.
The selling creditor pays fees that are normally in the single digit percentage range, and vary based on how solid the factoring company assesses the debt to be.
Debt collectors are involved, by definition, with delinquent debts as opposed to those in good-standing. They pay pennies on the dollar, or only work for a percentage of what is collected if they are only assigned.
However, the clear differences between what a factoring company and a debt collector normally do, and thus their normal "bisiness," does not adress the issue of whether a company who pays for debt that has become delinquent is also factoring the debt.
It is not a resolved issue in the case law, and while many will state flatly that a factoring company cannot include debt that has become delinquent, there is no basis that I am aware of for such a conclusion. The statement by a debt collector that they are also a factoring company is not, in my opinion, clearly inaccurate.
Of the many who have posted here on the site of complaints to the CFPB on this issue, I have yet to see the CFPB weigh in with their position that a debt collector asserting to also do business as a factoring company is improper.
Factoring companies do not deal with any past due accounts, charge offs, collections, or bad debt or etc. They only buy invoices (simplest way to say) that are not due yet. Selling business gets a quick cash flow, and factoring company makes a profit when the invoice is paid. Factoring companies do not deal with the end user, credit card debts and just about any account in that nature. Then, why is PRA trying to pass themselves as a Factoring company rather than a debt collector, or collection agency? Very simple. Because then, they are not obligated to obey the rules and regulations of Fair Debt Collection Practices Act! Why? Because they are "claiming" that they are not a collection agency. This already tells you from the get go that you are dealing with a crook company. Because they are claiming to be something else just so that they don't have to play the game by the rules. Another reason is so that they can update your account on a monthly bases like the original creditor. Another reason they are not a very professional company is i did have a chat with their ombudsman on their website about my account and asked her why the company was reporting as a factoring company and she said that, that information comes from the credit bureaus and they don't have anything to do with it which is a bulls***! All we are trying to do here is use our rights as a consumer, under the federal law, and making sure that everyone is doing their job right, the way it is supposed to be done. If they were doing their job right, they would not have to worry about any legit account being deleted; because, they would have the answer or the paperwork to proove me that what they are reporting is correct. Since this is not the case, at least in my case, instead of collecting the full amount, they ended up having to delete the account. Instead of trying to be the tough guy and say "Oh we will never delete your account whether you pay it or not", if they would have accepted the pif for delete offer, they would have made more money and it would have saved them several hours of labor and money.
If they are allowed to push the limits, bend the rules to their advantage, and cross the line most of the time, then i will use every single right, loophole, in the book as well.
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