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Out of the closet...Portfolio Recovery Associates..


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If Portfolio Recovery Associates or PRA has a tradeline on your credit report of a factoring company account, and you wouldn't mind giving me an affidavit to that effect, please PM me. They are telling the court here that they didn't report it, the cra's did it all by themselves! In order to counter it I need a few affidavits from other consumers that Portfolio Recovery Associates report factoring on a regular basis. They are trying to claim that TU, EQ, and EX all of the sudden decided to report factoring company accounts and it wasn't their fault!!!! Are you going to let them do this???!!! Help me and help yourself!! PM now!!

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If Portfolio Recovery Associates or PRA has a tradeline on your credit report of a factoring company account, and you wouldn't mind giving me an affidavit to that effect, please PM me. They are telling the court here that they didn't report it, the cra's did it all by themselves! In order to counter it I need a few affidavits from other consumers that Portfolio Recovery Associates report factoring on a regular basis. They are trying to claim that TU, EQ, and EX all of the sudden decided to report factoring company accounts and it wasn't their fault!!!! Are you going to let them do this???!!! Help me and help yourself!! PM now!!

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Just subpoena the CRAs records and see what the information Portolio sent was.

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  • 10 months later...

I don't know for sure, of course, but (being in the programming business myself) I wondered about this. The last I looked at the "Metro 2" format (is that right?) that businesses were to use in reporting information to the CRAs, I got the impression that they could only choose between a flag that said "we're the original creditor" and another flag that said "no, we're not the original creditor, so this must be a factoring account". There didn't seem to be anyway to say "this is a collection account" or "this is a purchased bad debt".

Not that it matters, because they really are reporting inaccurate data...but...it might give the CAs some wiggle room when it comes to a lawsuit.

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PRA committed more violations than just the factoring one which also violated state law. I filed a substantial counterclaim. We just recently reached a settlement in my favor and they dismissed their suit against me with prejudice. Also agreed to delete from my cr and the rest I can't tell you but I am pleased with the outcome. However, not anymore than 2 weeks later another law firm sent me a letter threatening suit on the same alleged debt. I am awaiting the results of the DV now and am eagerly anticipating playing ball again. :D

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Heh. You can now sue PRM again. They sold an item for value to another with the intent that collections continue. That violates the section of the FDCPA regarding misrepresenting the legal status of the debt. The misrepresentation was to the purchasing party who bought it for value under the belief it was collectable.

If you can I'd send another letter to this law firm explaining that the prior collector that came after you got their butts sued off and lost...and ask if they are prepared to face the same consequences. :twisted:

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Heh. You can now sue PRM again. They sold an item for value to another with the intent that collections continue. That violates the section of the FDCPA regarding misrepresenting the legal status of the debt. The misrepresentation was to the purchasing party who bought it for value under the belief it was collectable.

If you can I'd send another letter to this law firm explaining that the prior collector that came after you got their butts sued off and lost...and ask if they are prepared to face the same consequences. :twisted:

Actually they didn't sell it. They reassigned it to another law firm...the 4th one now. I went through 3 during the original suit. As for the present law firm, I am waiting to see how many violations they commit for PRA and then after a time, I will send an ITS letter with a copy of the complaint. So I am just in waiting mode at the time. Am making sure that they can't claim bona fide error. :D

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The risky thing about affidavits is that the other side can subpoena the affiant into court.

Yes they can but would have to pay the expenses of the affiant plus a witness fee. FCRA violations are worth $1k. CA's/JDB's will go the cheaper route IMHO and pay the $1k. I would also suspect it would depend on the amount of the underlying debt they were trying to collect.

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I don't know for sure, of course, but (being in the programming business myself) I wondered about this. The last I looked at the "Metro 2" format (is that right?) that businesses were to use in reporting information to the CRAs, I got the impression that they could only choose between a flag that said "we're the original creditor" and another flag that said "no, we're not the original creditor, so this must be a factoring account". There didn't seem to be anyway to say "this is a collection account" or "this is a purchased bad debt".

Not that it matters, because they really are reporting inaccurate data...but...it might give the CAs some wiggle room when it comes to a lawsuit.

This can't be true.

If they can only choose a flag between "we are an OC" and "we aren't an OC" how come other CA/JDB don't come up as FACTORING COMPANY?

I haven't looked at the Metro2 manual in a while, but just about every field that is reported as at LEAST 4-5 options.

CDIA had metro2 free downloadable, but I'm not sure if they do anymore and I can't find a copy on my harddrive.

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They took that free download away from us. :rolleyes: You have to be a member of CDIA to download that pdf now.

However, I did find this old post of creditech on credit boards.

Base Segment, Field 9 is for Account Type. Debt Collection Agencies have 3 relevent codes from which to select (10-3), although more codes are readily available (exhibit 2, 5-6). The 3 most relevent codes are:

48= Collection Agency/Attorney

77= Returned Check

0C= Factoring Company Account (includes Debt Purchasers)

They have to specifically pick factoring company.

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They took that free download away from us. :rolleyes: You have to be a member of CDIA to download that pdf now.

I have it if you want to pm me your email address.

As for them choosing the factoring option, they do it for one reason...financial institutions looking at your cr will think they really are factoring companies which makes these old debts look more recent and thus more damaging to your credit rating. It is done as a tactic to poison your credit report.

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Yeah, I was just reveiwing our posts from the last time this came up. I think you;re right...they choose "factoring account" because it implies that they're a "factor" and not a CA, therefore not subject to the FDCPA

The problem is, like I said last time, I'd like to see some caselaw that's says that's illegal. Obviously, it is,but still would be nice to have a court agree...

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Yeah, I was just reveiwing our posts from the last time this came up. I think you;re right...they choose "factoring account" because it implies that they're a "factor" and not a CA, therefore not subject to the FDCPA

The problem is, like I said last time, I'd like to see some caselaw that's says that's illegal. Obviously, it is,but still would be nice to have a court agree...

Since I settled (which was the best route for me in this case) I didn't make caselaw but this was an argument that I won on the merits of what they are and what a factor is and the judge agreed that it was indeed a violation of the FDCPA, the FCRA, and the WVCCPA. Someone somewhere will make caselaw on it very soon I am sure. Perhaps me...as I plan to take on AA soon... :lol:

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Yeah, I was just reveiwing our posts from the last time this came up. I think you;re right...they choose "factoring account" because it implies that they're a "factor" and not a CA, therefore not subject to the FDCPA

The problem is, like I said last time, I'd like to see some caselaw that's says that's illegal. Obviously, it is,but still would be nice to have a court agree...

Since I settled (which was the best route for me in this case) I didn't make caselaw but this was an argument that I won on the merits of what they are and what a factor is and the judge agreed that it was indeed a violation of the FDCPA, the FCRA, and the WVCCPA. Someone somewhere will make caselaw on it very soon I am sure. Perhaps me...as I plan to take on AA soon... :lol:

TowerRat made a very simple argument which really seemed to hit home with me.

"Factoring company" is a violation because it is misleading to a LSC.

If a CA describes itself as a "debt collector" we know what that is.

If a CA describes itself as a "collection agency" we know what that is.

If a CA describes itself as a "factoring company" huh what?

It may not be FALSE (debatable if it is), but it IS misleading. Even many sophisticated consumers would not know what a factoring company was.

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Using the factoring company account notation is not only misleading it is an outright lie! The reason JDB's use the factoring company notation is because it makes the debt appear to be a more recent default than it actually is which lowers your FICO. The term "factor" has to do with financing and nothing to do with accounts that are defaulted on and charged-off. When an OC charges off an account it is no longer an accounts receivable and thus cannot be a factored account.

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Yep, no doubt about it that at the very least, this is inaccurate reporting, and, at the most it might be illegal.

In the business world, a "factor" is someone who lends money on (or, in some case, outright buys) outstanding, good, collectible accounts receivable so that business don't have to deal with slow cash flow. In the business world, the factor's decesion as to whether to get involved is base on "collectible"...

However, I'm still not aware of any law or court decesion (damn, wish could spell) that says "business" and/or "collectible" are prerequistites to calling an account a "factored account". If, in the process of doing so, a CA reages the account, then that is clearly a violation of the FCRA, but "factored account" by itselft doesn't appear to be...

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