FCRA/Factoring Company Account

[SunnySideUp32]

Does it say somewhere in the FCRA and/or the FDCPA that charged-off unsecured credit card debt can't be charged off? If so, can you point it out to me because I can't find it in there?

[SunnySideUp32]

Does it say somewhere in the FCRA and/or the FDCPA that charged-off unsecured credit card debt can't be charged off? If so, can you point it out to me because I can't find it in there?

Oops, I meant can't be factoring accounts. LOL

[ICANHASMUNY?]

I would Dispute the uses of Factoring account, Factoring co, to be inaccurate and misleading under the FCRA

 

and use the FDCPA violation "reporting false and misleading credit information"

 

A JDB is a Debt collector under the FDCPA, - and the CDIA manual is not Federal Law, nor does compliance with this manual alleviate FCRA and FDCPA violations.

 

 

Factoring is a financing option in which firms raise cash by selling their accounts receivable at a discount from face value. Most factoring transactions made today actually are structured to be more like short-term loans with receivables pledged as collateral. Under this scenario, the firm pledging the receivables in return for funding still retains the risk associated with uncollectible receivables

 

In a typical factoring transaction, the borrower receives an upfront cash payment equal to about 80% of the face value of the receivables. When the receivables are collected in full by the factoring firm, the borrower gets paid the other 20%, minus a fee. Fees of about 3% per month (which is the equivalent of 43% per annum) are not uncommon, making factoring an expensive way to raise cash, but a necessity for companies that cannot secure a bank line of credit on reasonable terms.

 

Factoring

Definition: Under a factoring arrangement, a finance company agrees to take over a company’s accounts receivable collections and keep the money from those collections in exchange for an immediate cash payment to the company. This process typically involves having customers mail their payments to a lockbox that appears to be operated by the company, but which is actually controlled by the finance company. Under a true factoring arrangement, the finance company takes over the risk of loss on any bad debts, though it will have the right to pick which types of receivables it will accept in order to reduce its risk of loss. A finance company is more interested in this type of deal when the size of each receivable is fairly large, since this reduces its per-transaction cost of collection. If each receivable is quite small, the finance company may still be interested in a factoring arrangement, but it will charge the company extra for its increased processing work.

[futurehomeowner?]

ican, would you put all of the italicized words in your dispute too or were you just providing info on what a factoring account really is?

[ICANHASMUNY?]

you can if you want to.

[ICANHASMUNY?]

here's a old master thread on the subject.

 

hope you enjoy reading.... have a few days???

 

http://creditboards.com/forums/index.php?showtopic=126422&page=7&hl=factoring&do=findComment&comment=4177254