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The FDCPA does not use the term "colletion agency." It uses the term "debt collector" as defined in FDCPA 803(6).
It is any person or business the principal purpose of which is collection of any debt directly or indirectly owed or due on assets asserted to be owed or due to another.
A factoring company buys accounts receivable from an OC, and thus owns the debt, and collect on it. I see no reason why they would not be a legal debt collector under the FDCPA.
AAC/ MIDLANDS / Palisades is collecting for a old credit card / small signature loan / car repo 6 1/2 yrs ago. In CURRENT STATUS: Collection Account TYPE OF LOAN: FACTORING COMPANY COMMENTS: Collection Account >120Days Late
So is it a collection account or Factoring company? And does it make a difference in score. I have read it does because they can list themselves as an account and does not age as a collection account does. And I see that happening, EQUIFAX is over 100 points lower that TU and EX and the only difference I see is the Factoring Company and these accounts are showing up as recently deliquent status ONLY on equifax. TU and EX show no deliquent accounts even with these 3 collection accounts.
@RobertEG wrote:The FDCPA does not use the term "colletion agency." It uses the term "debt collector" as defined in FDCPA 803(6).
It is any person or business the principal purpose of which is collection of any debt directly or indirectly owed or due on assets asserted to be owed or due to another.
A factoring company buys accounts receivable from an OC, and thus owns the debt, and collect on it. I see no reason why they would not be a legal debt collector under the FDCPA.
Theres a distinction. FDCPA does not apply to OCs. Factoring companies are OCs. CA/JDBs are not. You have to look at third party debt collectors.
They can lie and get away with CRAs, BBB etc but certainly not in court.
Its an absolute violation.
Apologizing for digging up an old thread but I thought it would be better than starting a new one.
I have a CA reporting as a factoring company and it shows up as an open account on my CRs. When I pull from myFico it factors this balance in as open revolving debt and affects my DTI ratio. Depending on where I pull from it is also showing as 120+ days late. I have never DV'd or PFD'd this account. Like many folks I had a tendency to ignore this until recently. Additionally, it appears to me as if the CA has added a substantial amount to the original debt.
How the CA is reporting:
B B NCO FIN/22
2XXXXXXX
Date Reported-03/10
Date Opened-04/08
DLA-08/05
$435
OPEN
$895
001 $895
$895 12 0 0 0 O9
XP
FACTORING COMPANY; ORIGINAL CREDITOR: NCO/ASGNE OF CAPITAL ONE
/TU/EF
Original Creditor TL from the same report:
B B CAP ONE
XXXXXXXXXX
Date Reported-05/08
Date Opened-02/04
DLA-06/05
$400
REV
$0
$0
$0 52 3 3 7 R9
XPTRANSFERRED TO ANOTHER LENDER; PURCHASED BY ANOTHER LENDER
XP/TU
Any advice on how best to handle this situation? Thanks in advance!!
NCO was on my CR as an open TL with negatives as well. In my circumstances, I had a positive result with a DV (and only a DV), but it seems like every time I hear about NCO reporting, it's as an open account instead of as a collection, and with delinquencies.
@RobertEG wrote:The FDCPA does not use the term "colletion agency." It uses the term "debt collector" as defined in FDCPA 803(6).
It is any person or business the principal purpose of which is collection of any debt directly or indirectly owed or due on assets asserted to be owed or due to another.
A factoring company buys accounts receivable from an OC, and thus owns the debt, and collect on it. I see no reason why they would not be a legal debt collector under the FDCPA.
Because by definition a factoring company does not buy debts that are in default. They buy current debt in good standing to give the OC some fast upfront cash. A CA is not a factoring company no matter how you or they look at it. A factoring company is NOT a debt collector. When they buy the account they become the OC. When a CA buys the debt, they are still a CA.
CAs think by listing themselves as a factoring company it excludes them from the FDCPA, which it does not.
@guiness56 wrote:CAs think by listing themselves as a factoring company it excludes them from the FDCPA, which it does not.
Aren't their actions of reporting the collection as an open account and 120+days late a violation of some sorts?