Jump to content

NCO reporting SBC bill as factoring loan account


Blu
 Share

Recommended Posts

I was looking through one of my CR's and I noticed last night that NCO has been reporting a debt that I had with SBC, little over 3 years ago, as a factoring loan account. It also reads- Account Type: Open; Pay status: Collection Account; Original Creditor: NCO Assignee of SBC. Amount Due: 107.00. The phone service was shut off and the final bill was lost in a move back in 2003. Is phone service considered a written contract, oral agreement, or open account? And can NCO report it as a factoring loan account that is open? I'm not sure if I should do anything about it because the SOL is going to expire on one debt in 6 months and I'm dealing with West Asset Management on another at the moment and I don't want to rock the boat, so to speak. Should I just leave it alone?

Another question: Because NCO has bought the debt, does it reset the SOL?

Thank you for any advice!

Have a safe and happy New Year everyone. :)

Link to comment
Share on other sites

I was looking through one of my CR's and I noticed last night that NCO has been reporting a debt that I had with SBC, little over 3 years ago, as a factoring loan account. It also reads- Account Type: Open; Pay status: Collection Account; Original Creditor: NCO Assignee of SBC. Amount Due: 107.00. The phone service was shut off and the final bill was lost in a move back in 2003. Is phone service considered a written contract, oral agreement, or open account? And can NCO report it as a factoring loan account that is open? I'm not sure if I should do anything about it because the SOL is going to expire on one debt in 6 months and I'm dealing with West Asset Management on another at the moment and I don't want to rock the boat, so to speak. Should I just leave it alone?

Another question: Because NCO has bought the debt, does it reset the SOL?

Thank you for any advice!

Have a safe and happy New Year everyone. :)

Option 1) Contact SBC and work with them for a pay for delete.

Option 2) send NCO a debt validation and if they verify then request a pay for delete.

No, NCOs purchase does not reset the SOL.

I don't know about the factory loan account, I think it should be utility. I also dont know if it makes a difference. I don't know the type of account. maybe some else can help.

Link to comment
Share on other sites

A "factoring company" is a company that buys "Accounts Receivable" from other companies. Many junk debt buyers try to claim that they are factors as a way to get around the FDCPA. The theory is that they bought the debt and are now the original creditor (not true, they're a debt collector, as defined by the FDCPA, as long as they bought the account AFTER it was delinquent)

Reporting a collection as a factoring company account is not complete and accurate reporting, as required by the FCRA. A debt collector reporting a collection as a factoring company account is violating both the FCRA (but you need to get them to verify the incorrect data with the CRA for it to be actionable) and the FDCPA (false or misleading information, and communicating information known to be false).

Link to comment
Share on other sites

Thanks for clearing up the 'factoring account' part Divemedic, I understand it now. I thought that wasn't right, just wasn't sure. It looks like they bought the account after it went delinquent - 2 years after the fact. How do I get them to verify with the CRA?

Link to comment
Share on other sites

An answer to an earlier question:

Utility bills are considered revolving charge accounts for determination of SoL. That is because there was no fixed payment schedule for a fixed amount.

Also, telcom accounts are ususally paid in advance of services rendered for the local call plan. Long distance is usually metered unless you have a paid in advance all-you-can-eat plan. Remember how your first bill was amount used plus the next month?

Anyways, SBC in particular likes to "forget" that their accounts are always paid in advance and tries to get people to pay the full bill up to the cutoff date instead of crediting back the amount that was prepaid on the first bill. I've caught them on this twice now with my two past moves and both times the Illinois Commerce Commission has given them a slap when I ran it up to regulators.

Link to comment
Share on other sites

Thank you for the extra info Methuss. I had the phone service shut off in late October, 2003. I don't think it's legal the way NCO is reporting it. I should get in touch with SBC first and try to resolve the matter with them and then deal with NCO? Do you have a particular way of dealing with SBC that could help me with them?

I don't mean to be dense, and I have learned a lot by reading the threads in here, I'm just trying to get my head around everything. :)

Link to comment
Share on other sites

My method of dealing with SBC has always been to try talking to someone there first. If that fails, I then call the public utility commission for the State. SBC is a regulated company and each State has an agency that can step in to resolve consumer complaints. The last two times I complained to the Illinois regulators I had someone from SBC's corporate office calling me within 24 hours to resolve the problem. SBC does not like paying fines.

NCO must be handled seperately with a DV letter. That will at least put the brakes on them for a while. They will probably respond with a copy of the final bill from SBC, which is validation, but may not be accurate...move to stage 2, disputing the bill to NCO as not being accurate. The brakes are then on again. NCO cannot collect on a disputed amount until they finish investigating your claim of accuracy or they violate section 807(2) of the FDCPA.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.