CA/Factoring Company vs. OC

[cwnewscore]

I should probably start a rolling thread with all of my questions...

I've got a credit card account that was charged off to Midland. Midland is listed as a factoring company and references the OC. I can't find definitive info, but is a factoring company a debt buyer? I'd like to try GW with OC if they do not own the debt anymore. I'll be done paying Midland this month, but if OC cannot gain financially beause they don't own the debt, I'm thinking a GW will work.

Let me know your thoughts. Thanks!

[RobertEG]

Factoring companies are legitimate business concerns who buy normally non-delinquent debts from creditors who need instant cash, and are thus willing to sell their account receivable assets, which is future income, at a discount in order to get the cash today.

Some factoring companies distort that normal pattern by purchasing delinquent debt, and then asserting that you then have a non-existent installment loan with them.

Lots of complaints against certain debt collectors for practices that cloud the obligation.

However, I would not focus on those issues, but rather on the fact that they, regardless of the status of the debt or what they call themselves, have purchased debt that the consumer accrued through contract with an OC.  Thus, they are a debt collector under the FDCPA.

Once the OC sells the debt,delinquent or not, you no loner have any debt with them, and they should immediately have updated their credit reporting to show a $0 debt balance.  Thus, any request for deletion of any reporting they have made would be via a GW request.

Since payment or non-payment of the sold debt is meaningless to the OC, and they have most likely taken a net loss on the debt, it is often a bit tricky to pursuade their good-will.

If they still owned the debt, payment would put $$ in their pocket, and thus possibly promote a bit more good-will.  Which is why payment prior to an OC sale of the debt is usually preferable.

All you can do is try.....