Posts: 13,897
Registered: ‎04-15-2011
Re: BBB Complaint w/ Midland's "Factoring" Antics

Factoring is a totally legal and acceptable business practice, wherein a party purchases delinquent debt from creditor, enabling the creditor to turn a receivalble asset into instant cash, albiet at less than its full potential value.


This part I totally agree with, the rest of it not so much.  Here is the deal, they are putting in a specific code in that the CRAs don't have an exact match for, hence it is putting it in as a factoring company.  I've hear the "Well we put in 0C in this box and that's what the CRA puts it down for.  It's not our fault.  So if I walk into a bank wearing a ski mask and a trench coat and hand the teller a note that says give me money, I'm not robbing the bank, that's just what she took it as.


This is a blatant attempt to skirt the rules governing CAs.  They put themselves into the OC category and post as if they were the OC.  The problem is it's just really not worth the lawyers time and effort.  However with the new oversight maybe there will be a change.  Or if there is a major law suit or Class Action Suit that sets precedent this will change.  


I could just imagine the conference these guys were at and learned about this loophole.  Don't get me wrong, we use exploits, so I guess they use exploits too.  But it's wrong.   Just my two cents.

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