Factoring companies

After seeing that almost all of my negative credit report entries are listed as factoring company accounts I decided to do a little investigation. First I did a search for factoring companies, here is a good one izap(dot)com, how a factoring company works is they are forwarded invoices from a client, then they will give the client up to (generally) 80% of the invoice usually via check or electronic draft. The company then makes payments to the factoring company until the invoice is paid, the remaining balance is given to the company minus the factoring company's fee (generally a percentage of the invoice).

In short it's a great way for a company to accelerate cash flow and even allow customers to setup payment plans without having to finance anything. (The company that does business with the factoring company may sometimes add the factoring companies fees as a service/misc charge to offset their loss or they may just aborb the factoring fee)

So with that in mind, if a CA is a factoring company collecting on a debt that is owed to them then they would be dealing with a company, not an individual. I decided to contact one of the companies that was on my CR to determine if they actually even offered any factoring services. I attempted to contact LVNV (aka Resurgent) and was direct to a voicemail which I left contact information requesting information on fees, etc. Never got a call back, that was 3 weeks ago. Guess they don't

Now I know it violates the FCRA, but can anyone tell me which section(s) it violates?

Actually it violates both fdcpa and Fcra. Under Fcra it is inaccurate information and is not actionable until a dispute is done to attempt correction. Look under duty to provide accurate information and duty to investigate/correct inaccurate information on the Fcra rules. Under Fdcpa it would most probably fall under misrepresentation of the debt. Review the start of the Fdcpa to see why a collection account cannot be a factoring account.

Hey Cajun, it abolutely cannot be a factoring account as it is collecting a debt from a consumer, not a business. I never forwarded a invoice to them for a advance on the invoice, nor have I entered into any type of contract with them for factoring services.

By the way, can someone file civil suit for violation of the FCRA?

Additionally, filing the tradeline as a factoring account as opposed to a collection hits a persons FICO score alot harder

Heh, I wish I could make that shocked emoticon blink.

Fcra claims are actionable in any court of jurisdiction,but most are tried in federal court.You have to read the fcra to see what sections are actionable and what the sol is for each violation.