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Posted: Fri Dec 15, 2006 12:18 am Subject: Factoring Company Account ???

I have an "LVNV" account noted on my credit report.It is an old Sears account that originated in 2001.Since then this account has been sold to this company.I disputed this on my credit report and I now see this phrase.Factoring Comapny Account.What does this mean ?

Posted: Fri Dec 15, 2006 3:30 pm Subject:

LVNV Funding is reporting your Sears account with the bureaus. You may be interested in knowing about the reporting with the CA directly. Call their toll free and see what can be done to fix this matter.

Posted: Sat Dec 16, 2006 8:50 am Subject:

Welcome to the Forums Very Happy

LVNV is a junk debt buyer. They bought an OLD account ofmine too. I have been trying to get the debt validated for almost a year with noresults. If you talk to them expect rude, yelling people! They have broken several fdcpa reg. with me, so I do correspondence via the mail. Have your debt validated with them, they won't respond, but you will have proof of this. Then you will be able to dispute it with the credit agencies. Good Luck..Karen If you google them you will see the many pages and complaints of others here..

Posted: Sat Dec 16, 2006 9:40 am Subject:

"Factoring company account" is just a formal way of saying they bought a bad debt AKA junk debt buyer.

I dealt with LVNV too ... paid my Sears card off in 2002, except my payoff was about 2 days late so they charged a late fee. Since the rest of the balance was paid, I never paid the late fee. They started charging late fees on late fees, and interest; by this summer LVNV said I owed about $264.

I disupted it, sent in copies of my receipts from Sears, my last Sears statement from Feb 2002, and my bank statement showing that the amount on the statement cleared my bank. I bet when they got copies of my receipts, they wondered how I kept them from about 4 years ago?

Anyway, they sent me a letter back saying "After an investigation, we find that this account is closed. We are sorry for any inconvenience."

Posted: Sat Dec 16, 2006 9:43 am Subject:

That's great Debt cruncher! Wish I could get some closure on this one of mine!!..Karen

Posted: Sat Dec 16, 2006 9:56 am Subject:

They actually were dealing with me through through the guise of Resurgent Capital Services, which I found is just another name that they use.

If this helps, maybe you can send your DVs here:
RESURGENT CAPITAL SERVICES, LP
15 S. MAIN ST., STE 600
GREENVILLE, SC 29601

or

P.O. BOX 10497
GREENVILLE, SC 29603-0497

Phone 888-665-0374
Fax 888-546-7697

Posted: Sat Dec 16, 2006 1:44 pm Subject:

I could never find the definition for "factoring company account" Does anyone know what this exactly means?

guest · Posted: Sun Dec 17, 2006 7:42 am Subject:

They also have that listed on mine..They also have Sears listed as collateral, does anyone know what that means?

Posted: Sun Dec 17, 2006 10:16 am Subject:

Here's my thory:

When an original creditor writes/charges something off, that means they charge it against their loss reserve and report it as an expense on their income statement. Their books no longer show your account as an asset, even though money is still legally owed.

When they sell it, they usally sell it for less than 10% of the actual balance. Figure they might sell $100K to $1 million worth of bad accounts at a time; they sell them as a package, not one by one. Any money they make from that sale shows up on their books as recovery income and offsets their bad debt expense.

They company that buys the package is "factoring" someone else's bad debt as their new assets. They might have paid $100K to get $1 millions worth of accounts. If they can collect every penny owed, then they made $900K off the purchase.

Basically "factoring" is just a numbers game, they are playing the odds. Like gambling. They are gambling that they will be able to collect more on the accounts than they paid for them.

In regards to the collateral line, that is just a "comments field". They are just showing that Sears was the original creditor.

Guest · Posted: Sun Dec 17, 2006 10:27 am Subject:

Oh ok thanks for clearing that up. Just was curious as why it said collateral.

Posted: Sun Dec 17, 2006 10:43 am Subject:

Thanks debtcruncher for defining that, i really didn't know what it meant and always want to educate myself when I don't know about something

Donald Foulk · Posted: Tue Jun 19, 2007 8:42 pm Subject: LVNV NOT A FACTORING CO.

LVNV is a debt collector NOT a factoring company. A factoring company buys accounts receivable which have an OPEN status. They then collect the payments themselves. They only keep around a 2% less than the total. In my business I have used factoring companies as a source of immediate income when needed. A Factoring Co. ONLY purchases GOOD accounts.

Posted: Wed Jun 20, 2007 11:04 am Subject:

Factoring is a way that a business can borrow money against it's account receivables when they get in a pinch. Donald is correct. The accounts must be open. The factoring company assumes the A/R accounts and loans the balance of them to the original creditor for a hefty fee. When the business pays them back for that debt, they re-assume the A/R. They basically buy back their A/R accounts from the factoring company. It's expensive for them to do this, but if a business has filed bankruptcy or needs a quick loan for something, it's an option. Most banks offer this as part of their commerical services. I should say most BIG banks offer this. I hope this helps.

Posted: Wed Jun 20, 2007 11:29 am Subject:

karenr

I have an account from LVNV that was submitted to the credit bureaus as a new collection account just 2 days after they received the validation letter from my attorney. I was recently denied credit because of this.

My letter was received by them within 30 days of their original letter. They are to cease collection attempts until validation. This new account they have reported is a collection attempt and they are in violation of fdcpa. I am keeping up with this violation IF I decide to pursue a lawsuit.

Go to the Bud Hibbs website and look under "America's Worst collection agencies" and read about LVNV.

I think you have a previous post about them continuing to call after your attorney letter. Remember that each contact is a separate violation, document carefully and thoroughly.

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