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snarf

1st Texas Letter to JDB aka Factoring Company - please give me hell , or not

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I'd like to send my first dispute letter TFC style

ALSO invoking the Texas BCC DTPA 60 day clock at the same time, same letter.

with the following..

something like this : You are hereby put on the 60 day notice of "right to cure" as allowed under the Texas Business and Commerce Code (BCC17).

And I'd like to add the following:

It is also a violation to report a collections account as a factoring account; as factoring accounts are Business accounts that are purchased on open and current accounts. Therefore you are in violation of FDCPA

  1. (jdb) lists itself as a factoring company on my consumer credit reoport when in fact you jdb are not a factoring company. It is a violation of 15 USC § 1692e(2)(A) for a debt collector to misrepresent the character, amount or legal status of any debt. This would also appear to be a violation of 15 U.S.C. § 1681s-2(a)(1)(A), since JDB, in listing itself as a factoring company on my credit report, was reporting information it knew, or had reasonable cause to believe, was inaccurate.

JDB lists its account with me as ‘open’ and ‘past due’ on my consumer report, Again, it is a violation of 15 USC § 1692e(2)(A) for a debt collector to misrepresent the character, amount or legal status of any debt. Also, this would again appear to be a violation of 15 U.S.C. § 1681s-2(a)(1)(A), since JDB, in misrepresenting the account as open, was reporting information it knew, or had reasonable cause to believe, was inaccurate.

This was addressed by the case: VONNE MARTINEZ, Plaintiff, v. ALBUQUERQUE COLLECTION SERVICES, INC., Defendant.
NO. CIV 93-1468 JB
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

867 F. Supp. 1495; 1994 U.S. Dist. LEXIS 16168

October 14, 1994, Decided
October 14, 1994, Filed, Entered
OPEN ACCOUNTS
Defendant categorized Plaintiff's accounts as "open." (DeVine Dep. Ex. 11.) Section 39-2-2.1 only permits the award of attorney fees in "any civil action . . . to recover on an open account." N.M. Stat. Ann. § 39-2-2.1 (Michie 1991) (emphasis added). An open account "does not mean an amount owed on a single transaction or an account stated. It is a written account concerning a related series of debit and credit entries of reciprocal charges and allowances kept open until it shall suit the convenience of either party to settle and close the account." Southern Union Exploration Co. v. Wynn [*1510] Exploration Co., 95 N.M. 594, 624 P.2d 536 (Ct. App. 1981). [**42] The continuity of an open account is broken where the relationship of the parties changes or where the account has remained dormant. 1 Am. Jur. 2d Accounts & Accounting § 5 (1962)......

IT IS FURTHER ORDERED that Plaintiff's motion for partial summary judgment on the ground that Defendant's attempt to recover attorney fees by representing Plaintiff's accounts as "open" was a false representation of the character of a debt in violation of section 1692e(2), and was also the attempted collection of an amount not permitted by law, in violation of section 1692f(1) be, and hereby is granted. Defendant's cross motion for summary judgment on the same ground is hereby denied.

DATED this 14th day of October, 1994.
Juan G. Burciaga
Chief Judge

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So are you asking if this is the correct way to do this? You want a critique from people who have dealt with this factoring thing they do? It is an attempt to avoid the FDCPA by portraying the CA as an OC.

 

But I think you didn't get an answer because people weren't sure what you wanted.

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Ok Thanks ! for your replies, I will re-think and research my approach.

 

Is there a way to implement both? Whether that is to be later when sending the follow up letter and/or only when filing suit?

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So are you asking if this is the correct way to do this? You want a critique from people who have dealt with this factoring thing they do? It is an attempt to avoid the FDCPA by portraying the CA as an OC.

 

But I think you didn't get an answer because people weren't sure what you wanted.

Not necessarily the 'correct way' but rather if it is 'a' way or option for a Texas resident.

Yes, I would like to learn more about ways people have dealt with this factoring thing while being in Texas, and if or does that have a role to play.

I wanted to open a dialogue of critique. If is was an approach to take, and if not why. I see Walterg55 input.

 

This was just a part of the TFC DV code siting the case that addressed 'factoring' companies.

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It looks good to me, but I'm not in Texas, so I've never used the TFC to attack anything. I'm in good ole Virginia, which says Federal law is good enough for us. :D Send it and see what happens. Can't hurt anything, might work. Do read all the factoring threads - I believe that most people used FACTA though - not that many in Texas have tackled this using the TFC.

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Thanks Breeze I'll revisit FACTA and weigh the differences. Although it seems that Walterg55 advises against mixing federal and state. I think because then they will move to federal without allowing the suit to stay in the local court county court. If I have that right...

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