Portfolio Recovery

I would first suggest that you send a validation letter to them. Then I would suggest disputing it with the credit reporting bureaus. If they cannot provide you with documentation to show they are a factoring company (which they are not) and they verify it with the credit reporting bureaus as being accurate then you can sue them for violations of the FCRA for probably about $7,000 plus punitive damages.

Here is how factoring companies work:
1. Merchant sells product to consumer and allows consumer to make payments on item.
2. Merchant contracts factoring company forwarding invoice to factoring company.
3. Factoring company pays balance of invoice minus certain percentage (usually around 50%-75%)
4. Merchant forwards payments to factoring company until invoice is paid.
5. Upon payment factoring company forwards the remaining balance minus their fee to the merchant.

End of transaction.

portfolio recovery associates are licenses as a collection agency, not a factoring company, the two services are in no way related.[/img]

I checked my credit report today and it showed this company on there as well. The original credit card debt is shown as "Charged Off" since 2007, however this company contacted me once in 2008 and I attempted to set up a settlement amount, and then I did not hear from them again. Now they are showing on my report as being an "open account" and that my last payment was $25, however I have never paid this particular company ANYTHING, EVER. And they are listed on my credit report as Type of Loan: Factoring Company Account. Should I send a letter asking for debt validation and then dispute it on my report?
Thanks
Alex
[email]the_phoenixx@cox.net[/email]