A party who acquires a debt that is delinquent at the time of purchase is a debt collector, and thus subject to all provisions of the FDCPA.
A party who acquires a debt that is in good standing at the time of purchase is not a debt collector, and thus not subject to the FDCPA.
"FDCPA 803(6)
The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection or any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due to or asserted to be owed or due another.
The term does not include-
(F)(iii) any person collecting or attempting to collect any debt owed of due or asserted to be owed or due another to the extent that such activity concerns a debt which was not in default at the time it was obtained by such person"
Factors normally purchase accounts receivable in good standing, and thus at less risk, while JBDs usually purchase debt that is in default.
However, some who report their business as a factoring company have developed a practice of reporting collections on debts in default at time of their purchase as accounts with consumer agreements with them, such as an installment loan. Under the FDCPA definition, they are clearly debt collectors.
They are blurring and confusing the status and distinction of the debt vs their type of stated business.
Its a legalistic mess that is spawning numerous complaints to the FTC. Hopefully, they will take action on such complaints and clear the air.....
As for the mortgage company request to have a dispute "removed," I would venture what they mean is that they only want it to show terminated?
