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New Member
discountdebt
Posts: 3
Registered: ‎07-15-2009
0

factoring company account comes off report?

My Transunion report shows (LVNV Funding LLC) as a factoring company account.  This debt originated in December 2010 for $1,548.00.  They've been adding on about $10 a month up until today, June 2013.  Transuion estimates that this item will be removed March 2015, which is only 4 1/2 years since the debt was originally due. 

 

Also, Transuion shows a different account for the same debt from Chase BP charged off on November 4, 2008 for $1,483.00.

 

QUESTION:  What is a factoring company?  If I were to try and negotiate the debt, would I talk to the factoring company or the original creditor who is Chase Bank?

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: factoring company account comes off report?

In this case a factoring company is a CA.  They report that way because it gives them OC posting abilities that aren't available to a CA.  There's nothing against them reporting as a factoring company, but what they do with that ability is where problems arise.

 

Treat them as a CA, because that's what they are.

 

I'd personally rather deal with the OC if they will do it.


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New Member
discountdebt
Posts: 3
Registered: ‎07-15-2009
0

Re: factoring company account comes off report?

not sure what you meant by "They report that way because it gives them OC posting abilities that aren't available to a CA.  There's nothing against them reporting as a factoring company, but what they do with that ability is where problems arise." 

 What problems will arise?  If they really are a CA how can they post?   And now we have two different accounts showing in the CR that are really just one.  Do they have the authority to change the OC posting or resolve issues with the OC?

Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: factoring company account comes off report?

They are two separate accounts.  One is the OC account the other is the collection account.  Not the same account.  It is legal for the OC and the collection agency they either sold or assigned the debt to to report.

 

What do you mean if they really are a CA (they are) how can they post?

 

No, only the OC controls their TL.

 

A true factoring company buys account receivables in good standing thereby making them the OC.  Debt buyers started calling themselves factoring companies to have the same reporting rights as an OC.  The problem with this is they do not buy accounts in good standing.  When they acquire an account it has already been sent to collections or charged off.  They are still a debt buyer/collection agency in the eyes of the FTC and the CRAs.  Not OCs. 

 

If the CA is working for the OC, yes, they can resolve issues.  Make settlement offers, accept PFDs etc.  The problem is that it only applies to their own reporting (settlement not included) and not the OCs.

New Member
discountdebt
Posts: 3
Registered: ‎07-15-2009
0

Re: factoring company account comes off report?


guiness56 wrote:

They are two separate accounts.  One is the OC account the other is the collection account.  Not the same account.  It is legal for the OC and the collection agency they either sold or assigned the debt to to report.

 

What do you mean if they really are a CA (they are) how can they post?

 

No, only the OC controls their TL.

 

A true factoring company buys account receivables in good standing thereby making them the OC.  Debt buyers started calling themselves factoring companies to have the same reporting rights as an OC.  The problem with this is they do not buy accounts in good standing.  When they acquire an account it has already been sent to collections or charged off.  They are still a debt buyer/collection agency in the eyes of the FTC and the CRAs.  Not OCs. 

 

If the CA is working for the OC, yes, they can resolve issues.  Make settlement offers, accept PFDs etc.  The problem is that it only applies to their own reporting (settlement not included) and not the OCs.


What do you mean by "only the OC contols their TL"?  Can the factoring company resell the debt to another factoring company and now i will have three separate accounts resulting from only one uncollected debt?  If it is settled (by either the OC or CA) will it be posted on any account that is related to this debt?

Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

Re: factoring company account comes off report?

I mean that ONLY the OC can get their TL deleted.  No CA has any control over that.

 

Yes the CA can resell the debt.  However, if they do they are supposed to delete their TL.

 

When the debt is settled it will reflect on the CA account only.  The OC sold the debt and should be reporting a 0 balance.


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