What is a "factoring company" How, if at all, do they differ from a regular CA? Do they have to be licensed and bonded ( if the state requires) as do CA?
I think these companys "take over" financially ailing companies. They will bail out the failing company with a cash inflow, but then they will have control over the company's finances. They are probably considered the same as the OC but I don't know much more about them sort of "loan sharks" for companies!
I got a new copy of my TU report in the mail today and one of my collection accounts , MIDLAND CREDIT MANAGEMENT says that it is a "factoring company" This company is not licensed or bonded in my state, sent the crrr letter 6 weeks ago. On Equifax, they are listed in the "other" catagory. Called the FTC and they said that is illegal because it makes a collection account look just like an installment or revolving account... so the collection account never gets older.. stays with a current status of 120 days late. We have also tried DV letters to this co. they ignore them. Have tried disputing.. comes back varified.. on EQ, it lists the number one reason for your score being lower as "current past due accounts" and the only one that it lists is Midland Credit management. I wrote a letter to the CEO of Equifax threw planet feedback about this last week and copied in our state representatives, and the governor since they (Midland Credit Management) dont seem to care if a license is required in our state . No responce yet. Called the FTC about it... and talked to a nice person...and they said that what MCM is doing is illegal, and they will "investigate it" ,, How do I get these terible monsters deleted once and for all?
Midland Credit Manangement is a known low-life CA. There are many horror stories about them on this board good luck!
The purpose of a factoring company is to loan a company money against it's receivables. It is not the same as being a collection agency. Their interest rate is equivalent to legalized loan sharking so companies should avoid using them on a regular basis. You should also file a complaint with whatever state agency licenses and regulates collection agencies. I am going through the same thing in my state with a different company. They are acting as an unlicensed CA so their posts to my credit report are illegal PLUS the statute of limitations has expired so I notified the state authorities and the CRA last week.
MIDLAND CREDIT MANAGEMENT says that it is a "factoring company" ===================== This a FDCPA violation-The are misrepresenting who or what they are. ****************************************************** NEW MEMBERS READ THIS. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=410243#post410243 ******************************************************* >
