Portfolio reporting as a factoring company

[Maingal]

Filed a complaint with BBB regarding Portfolio response was crap saying that they did not need to very the acct and they are reporting it as a factoring company.    Now its not reporting as a Collection account, and now its showing as an open acct .  Not sure what to do next, HELP

I am writing in response to your recent communication regarding the trade line on your credit report for the
account referenced above.
One of our representatives has filed a Universal Data Form electronically for this account requesting that the
three major credit reporting agencies updated PRA's trade line for this account on your credit reports. Please
review this form and kindly inform the Disputes Department immediately if the name, social security number,
address, account number, or any other information needs to be revised. Please allow up to 60 days for each
of the three major credit reporting agencies to update their records accordingly.
Feel free to contact the Disputes Department if you have any questions regarding this letter and the
attachment by phone at (866) 428-6589, ext. 10181 or by fax at (757) 321-2519. The address for the Disputes
Department is Portfolio Recovery Associates Disputes Department, 140 Corporate Boulevard, Norfolk, VA
23502. Our hours of operation are 7:30AM to 11 PM EST Monday

[DaBears]

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@Maingal wrote:

Filed a complaint with BBB regarding Portfolio response was crap saying that they did not need to very the acct and they are reporting it as a factoring company.    Now its not reporting as a Collection account, and now its showing as an open acct .  Not sure what to do next, HELP

I am writing in response to your recent communication regarding the trade line on your credit report for the
account referenced above.
One of our representatives has filed a Universal Data Form electronically for this account requesting that the
three major credit reporting agencies updated PRA's trade line for this account on your credit reports. Please
review this form and kindly inform the Disputes Department immediately if the name, social security number,
address, account number, or any other information needs to be revised. Please allow up to 60 days for each
of the three major credit reporting agencies to update their records accordingly.
Feel free to contact the Disputes Department if you have any questions regarding this letter and the
attachment by phone at (866) 428-6589, ext. 10181 or by fax at (757) 321-2519. The address for the Disputes
Department is Portfolio Recovery Associates Disputes Department, 140 Corporate Boulevard, Norfolk, VA
23502. Our hours of operation are 7:30AM to 11 PM EST Monday

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All collection accounts are reported as open. There is nothing illegal for reporting a factoring company account. 

[Anonymous]

Is this a paid collection or has it been paid in full? If there is still a balance then yes, it will have a status of "open" and the balance owed. If it had been paid it should be updated to $0 balance and closed. Although it may be listed visually as a factoring company the codes entered "behind the scenes" should cause it to be categorized and scored as a collection account. IMHO it's a shady-looking thing for a CA to list themselves this way however, the CRAs should have the coding to show it is not a regular open/closed account but in fact a collection and this will be the basis of the scoring. A mod or more experienced member could confirm or correct & discipline me on this

PS - they're on mine as a factoring co too so I understand. PRA is an "interesting" group

[RobertEG]

First and foremost.... was the debt delinquent when they acquired it?

A party who purchases a debt that is not delinquent is not a debt collector under the statute.  FDCPA 803(6)(F)(iii).

Many are screaming at the simple fact of a party reporting as a factoring company.  That is their stated and legitimate field of business, and does not in and of itself render their reporting inaccurate.  The devil is in the details of what reporting they are making that is inaccurate based on their status as a factor.

The standard definition of a factor is one who purchases accounts receivable from a creditor, thus putting quick money in the creditor's pocket.

The factor then takes over the debt.  If the debt was not delinquent when they acquired it, their activity is not as a debt collector.

[guiness56]

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@RobertEG wrote:

First and foremost.... was the debt delinquent when they acquired it?

A party who purchases a debt that is not delinquent is not a debt collector under the statute.  FDCPA 803(6)(F)(iii).

Many are screaming at the simple fact of a party reporting as a factoring company.  That is their stated and legitimate field of business, and does not in and of itself render their reporting inaccurate.  The devil is in the details of what reporting they are making that is inaccurate based on their status as a factor.

The standard definition of a factor is one who purchases accounts receivable from a creditor, thus putting quick money in the creditor's pocket.

The factor then takes over the debt.  If the debt was not delinquent when they acquired it, their activity is not as a debt collector.

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However, a factoring company and a debt collector are the same in the credit reporting resource guide.  You look up debt collector and find factoring company and vice versa.

Midland, LVNV, Asset, and many more lists themselves as factoring companies and they are collection agencies/debt buyers.

[NWintellectual]

When a debt is handed off to the "factoring company" doesn't the OC have to report zero balance to the CRAs since they no longer own the debt instrument? Or can both entities report balances. I have this situation with a couple of my baddies, so I'm kinda curious.

[guiness56]

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@NWintellectual wrote:

When a debt is handed off to the "factoring company" doesn't the OC have to report zero balance to the CRAs since they no longer own the debt instrument? Or can both entities report balances. I have this situation with a couple of my baddies, so I'm kinda curious.

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Only if they sold the debt.  If they only assigned it to them they both can report balances.