Jump to content

Factoring Company


Shae
 Share

Recommended Posts

Except a JDB is NOT a factoring company as a factoring company buys account receivables in good standing not defaulted ones. There is mucho federal caselaw on what constitutes a true factoring company.

The reason it is on your report is because of the way the CDIA says a JDB should report. It is not accurate as the notation makes it appear as though the debt is newer than it really is which can lower your score. And one should remember that the CDIA is not a governmental agency. The CDIA represents the consumer credit reporting information industry and sets industry standards. It is not the law but merely guidelines so that all the reporting is standardized.

A lot of JDB's who have been counter-sued or sued for violations concerning the notation of being a factoring company account have claimed that they don't report themselves as factoring companies -- that the CRA's do that all by themselves... yeah, right! :roll:

Link to comment
Share on other sites

Ok, so I've seen some known JDB's on my report with "Factoring company" in the remarks. So not all JDB's are factoring companies?:confused:

A junk debt buyer cannot be a factoring company as they purchase accounts already in default and charged off as uncollectable. A factoring company buys accounts receiveables which are NOT in default.

If you want to read a lot more about this, go to the link in my signature and search the old AoC archives for TowerRat's dissertation on what the FDCPA violations are for factoring company reporting. I cannot post them here as they are copyright protected but it is excellent information.

Link to comment
Share on other sites

Hannah is correct. A close friend of mine owns a true factoring company. Essentially, he buys receivables from companies in need of cashflow. They are accounts in good standing.

Ok so basically on my TU, they kindly pointed out the JDB's to me by noting factoring company on my report.

Link to comment
Share on other sites

Some companies may be both a JDB and a factoring company, if they purchase both active receivables and written off debts.

I really can't see how that would make the tradeline any better or worse.

I think maybe they attempt to categorize themselves as factoring rather than debt collectors as a way to avoid having to follow the FDCPA. Somehow, I doubt a court would fall for that though.

Link to comment
Share on other sites

With the previous threads in mind, can someone tell me exactly what these are?

Unifund

LVNV

Asset Acceptance

Each lists itself differently on their TLs on my CRA files.

Well, I asked the question because I wasn't sure exactly what a factoring company is. But on my TransUnion report the following are listed as factoring companies: Credit Solutions Corp., Palisades, NCO Fin/22, Portfolio Recovery.

Look on your TU report, it may say.

Otherwise, I'm sorry I don't know about the specific companies you listed. It's listed in the REMARKS for me.

Link to comment
Share on other sites

Doesn't matter what you call them - CAs or JDBs (or factoring companies), they are collectors with dubious reptuations that must be dealt with. Search for any one of those companies you mentioned and you will find plenty of info. But they should all be dealt with using the DV process.

Credit Solutions Corp. is one exception. I had the hardest time finding anyone who had experience with them. In my case, they had excellent records for a JDB and were extremely rude and difficult to work with.

Link to comment
Share on other sites

With the previous threads in mind, can someone tell me exactly what these are?

Unifund

LVNV

Asset Acceptance

Each lists itself differently on their TLs on my CRA files.

Each one of these is a debt buyer. They purchase distressed and defaulted debt not accounts receivables in good standing and are therefore not factoring companies.

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.