Can anyone share some light on this? What is the difference between a Factoring Company Account & a Credit Card Account. Can a credit card account change into a factoring company account by a debt-buyer. Is this legal?
Some debt collectors like to call themselves factoring companies in order to get around FDCPA requirements. The courts don't buy that however.
Debt purchasers which report as factoring companies are committing a FDCPA violation. They do not "factor" current account receivables rather, ones which are in default. Moreover, if this data field is disputed through the credit reporting agencies and verified by the furnisher, it is a FCRA violation.
