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Fighting a CA in states that don't have good consumer laws

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Ok..long winded title eh? Anyhow I was thinking about people who don't live in Texas and don't seem to have any way to battle these CAs who put everything under the sun on credit reports and ignore DV letters for being outside of the 30 day window.

I am thinking there may be a different way to do this for those people and it may work. It involved using the FCRA namely, this section:

§ 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2]

(a) Duty of Furnishers of Information to Provide Accurate Information

(1) Prohibition

(A) Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.

(B) Reporting information after notice and confirmation of errors. A person
shall not furnish information relating to a consumer to any consumer
reporting agency if

(i) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and

(ii) the information is, in fact, inaccurate.

Ok so what someone should do then is send a letter to the CA who is reporting things that are inaccurate like terms, open account, factoring, installment, whatever, past dues, etc...list each one specifically and point out how it SHOULD be reporting. Example:

1. You are reporting a past due balance when I have never entered into any payment arrangements with you to be past due upon.

2. You are reporting this account as type Factoring Company account when it should be reported as a Collection account.

When you get the green card back, you then dispute with the CRAs like you were doing the 1-2 punch. When it gets verified and you have given the CA a reasonable amount of time to correct the problem you send them an ITS letter informing them that since they willfully continue to report these obvious errors, you have no choice but to sue them as there is no way they can claim a bona fide error on this.

If they STILL don't respond (and we all know they likely won't) then you go file in court for the $1000 PER violation. This could add up if they are reporting on all 3 reports and more then one item...say they are reporting open, past due and wrong account type..that is $9000 in don't forget the court fees.

Now from what I have seen and experienced, once you file they see you mean business and suddenly they start trying to settle.

I honestly think this would work, and work well.....problem is I live in a state where it works even better then that due to our wonderful state laws....

So...someone in another state should try this method....I am certain it would work....would turn the collection industry on it's ear if people who couldn't DV under normal circumstances could nail them in this fashion.:cool:

So whatcha think?:lol:

You could. They might be able to snake their way out of it with a 'clerical error', but if you point it out and they still don't do anything, then there is no help for them.

A factoring company account is a business account that has not defaulted...these accounts are sometimes sold to generate money..they are 'incomes receivables'.

The difference is in how the credit scores are rated and in how potential creditors look at accounts....a factoring account is a business account and it looks like you have business debts.

The CAs may start going in and fixing the obvious errors and when that happens this method won't work as well. But right now, this method of reporting is so rampant that it would take ALOT of extra manpower to go in and start changing peoples info.

They are so quick to 'verify' with the CRAs that for now they will violate left and right and it is almost guaranteed money in your pocket.

I am a firm believer of using EVERY bit of information in the laws to benefit yourself. While these CAs continue to violate the law, I will keep developing guerrilla tactics to combat them.

Sub: #11 posted on Mon, 04/19/2010 - 18:31

goldenbast goldenbast
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Here was LVNV's response to my complaint about the Factoring notation:

.......alleges that we are violating the FDCPA by reporting
his accounts as “installment” accounts and listing LVNV as a
“factoring company.” We respectfully deny these allegations.
Per the CDIA (Consumer Data Industry Association) Metro 2 manual,
factoring company is defined as “a company or individual who
purchases accounts with the intent of collecting debts owed.”
Therefore, the term is accurate in this situation. The statement
“installment account” is generally how a revolving line of credit
is defined by the credit bureaus. This comment is added by the
bureaus to further define the account; therefore, this statement
cannot be altered

Sub: #12 posted on Mon, 04/19/2010 - 20:46

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That is dribble. Send them an intent to sue letter because that is NOT what a factoring company is. Nor is Installment correct because it has become simply a 'collection account'. The OC reporting it as an installment account is correct, but not a CA reporting an account that a CA has, that has already been closed by the OC.

Sub: #13 posted on Tue, 04/20/2010 - 09:02

goldenbast goldenbast
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I have got to go dig up my metro 2 manual....if I can't find it, im gonna go buy one.

Sub: #14 posted on Tue, 04/20/2010 - 09:03

goldenbast goldenbast
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Did they respond to the account being past due or having terms?

Sub: #15 posted on Tue, 04/20/2010 - 09:04

goldenbast goldenbast
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Here are a few web-based definitions of "Factoring"


[FONT=&quot]In finance, the selling of [URL="http://www.answe"]accounts receivable[/URL] on a contract basis to an agency known as a factor in order to obtain cash payment before the accounts come due. The factor assumes full responsibility for credit analysis of new accounts, payments collection, and credit losses. Factoring is most often used in seasonal industries such as textiles and shoes to shift the functions of [URL=" credit"]credit[/URL] and collection to a specialized agency.


type of financial service whereby a firm sells or transfers title to its accounts receivable to a factoring company, which then acts as principal, not as agent. The receivables are sold without recourse, meaning that the factor cannot turn to the seller in the event accounts prove uncollectible. Factoring can be done either on a notification basis, where the seller's customers remit directly to the factor, or on a non-notification basis, where the seller handles the collections and remits to the factor. There are two basic types of factoring:

Sub: #16 posted on Tue, 04/20/2010 - 09:12

goldenbast goldenbast
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WHEE! I found my copy of Metro 2. I may buy a new one as this one is older and a newer version may be out. It has been so long since I went through it, but I am going to re-read it and post here excerpts that pertain to specific areas of reporting.

Sub: #17 posted on Wed, 04/21/2010 - 06:12

goldenbast goldenbast
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Hmm. It seems the company who made the metro 2 standard is the one who screwed up, not to mention they contradict themselves. In one part it lists it is ok to report as type open, in another part it says it shouldn't. LOL. Also it seems it is allowing the JDBs to slip in as 'factoring company' as it lists a factoring company as a company that buys debt, but this is false....LOL.

BUT the end result should still be the same. The Metro 2 allows for either classification of factoring or collection agency. So the JDB is not 'forced' to report itself as a factoring company. BUT you could also bring the company that made the metro 2 into the suit for misrepresentation, since there is a clear definition of just what a factoring company is.

You could also drag in the CRAs......they are allowing this mis-information to be posted and are even encouraging it! Somewhere in all this the account in debate would end up getting deleted because someone wouldn't want to go to court over it.

There is caselaw (I still need to find this) that backs it up as well. The facts are that a collection account is NOT an open account since the 'original' account is a closed account, so to must the collection account.

But at least in the metro it states that collection accounts should leave 'terms' blank.

Sub: #18 posted on Fri, 04/23/2010 - 02:30

goldenbast goldenbast
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The California debtors rights require debt collectors to provide or send the consumer a notice describing their rights under the California Rosenthal Fair Debt Collection Practices Act and the FDCPA., and the notice must state that:-The debt collectors may not contact the consumer before 8 a.m. or after 9 p.m. -They may not harass or threaten the consumer with violence or arrest or by using obscene language.

Sub: #19 posted on Wed, 06/02/2010 - 01:49

june may june may

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Originally Posted by NASCAR_Devil
Here was LVNV's response to my complaint about the Factoring notation:

Who did you file your complaint with???

Sub: #20 posted on Sun, 06/13/2010 - 13:24


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