How To Deal With LVNV Funding

What Is LVNV Funding?

LVNV Funding LLC is a third-party debt collection agency that buys debt that has been charged off by original creditors, usually from consumer credit cards and various types of personal loans. When consumers get too far behind on their accounts and creditors don’t think they will get paid, creditors sometimes sell the debt for pennies on the dollar. LVNV Funding often purchases huge portfolios with numerous overdue accounts. They then contract out the management of the accounts to Resurgent Capital Services, which is responsible for pursuing the account owner to get paid.

Why Is LVNV Funding Contacting Me?

LVNV Funding is contacting you in an attempt to get payment on an outstanding balance from a credit card or loan. They purchased the debt from a company you originally had an account with, like a credit card company. They now own the debt and are trying to collect it from you. The person who contacts you is likely from Resurgent.

Is LVNV Funding Legit?

Yes, LVNV Funding is a legitimate debt collection company with multiple locations. They are headquartered in Greenville, South Carolina, and have been accredited by the Better Business Bureau (BBB) since 2017. Although they have an A+ rating with the BBB, over 1,000 complaints were filed against them in the past three years, and many more were filed with the Consumer Financial Protection Bureau (CFPB).

The most common issues with LVNV Funding that consumers reported to the CFPB include:

• Trying to collect on a debt that was either already paid or not theirs

• Trying to get money in cases where the statute of limitations had passed

• Trying to collect substantially more than the original debt owed

• Not giving enough information to verify the debt

• Not disclosing that the consumer has the right to dispute the debt

Note to reader: These reviews and complaints highlight relevant issues, but they may not represent all consumers’ experiences.

If a debt collector contacts you, the Fair Debt Collections Practices Act (FDCPA) protects you from abusive, unfair, or deceptive behavior. LVNV Funding has been sued by consumers multiple times for FDCPA violations. If a debt collector like LVNV crosses the line, it’s your right to submit a complaint to the CFPB and even sue the debt collector. 

Even though LVNV Funding is a legitimate company, scammers are notorious for using the names of debt collectors to create fear and get personal information or money from you. If a debt collector contacts you and it seems suspicious, keep a tight lip and ask for more information. Always request that they validate the debt, and keep detailed records of your correspondence.

Do I Have To Pay LVNV Funding?

You might need to pay LVNV Funding, but first, you need to figure out if the debt is legit by answering a few questions. Does the debt belong to you? Is the amount correct? What is the statute of limitations? Debt collectors often have incorrect or incomplete information, and If the debt is not yours, you can dispute it. If the debt does belong to you and the amount is correct, you have options for how to move forward. 

Step 1: Send a Debt Verification Letter

The Consumer Financial Protection Bureau’s (CFPB) debt collection rule requires debt collectors to provide you with validation information as part of their initial contact with you or within five days of communicating with you. This information includes the name of the creditor, the current amount owed, and your right to dispute it within 30 days.

If you haven’t already received a debt validation letter from LVNV Funding, you can request one from them or send a verification letter. While you wait for the details to be verified, take the opportunity to check your credit report. Report any errors!

If LVNV Funding responds with verification of the debt, your next step will depend on whether you agree or disagree with their claim.

Step 2: Decide What To Do Next

Although you might feel powerless against big debt collection companies like LVNV Funding, you do have options. If you don’t agree with their claim, you can dispute the debt. If you agree with it, you can negotiate and make a settlement offer. And while ignoring the debt is also an option, it is never recommended because it can make your situation worse in the long run.

Option 1: Dispute the Debt

Let’s say you received a debt validation letter from LVNV Funding but you disagree with the details of the claim. You have the right to dispute the debt in writing within 30 days of receiving the validation letter. They cannot continue with collections actions until they have responded to the dispute with verification.

If you haven’t already, check your credit report with the three credit bureaus. If an agency has incorrect details about a debt you owe, there is a good chance those details were reported inaccurately on your credit report as well. Not to worry, as this is quite common, and the Fair Credit Reporting Act gives you the right to dispute these errors via a 609 credit dispute letter.

Option 2: Negotiate the Debt and Make a Settlement Offer

If you are like most people in this situation, you cannot afford to pay the debt in full. Thankfully, there is another option. You can negotiate a debt settlement and come up with a payment plan.

Many creditors will settle for 40%–60% of the original amount owed. They purchase debts for pennies on the dollar, which makes it easy to turn a profit when collecting on them. It also gives the consumer leverage. When you negotiate, offer to pay between 25%–30% of the total, but be prepared to meet in the 50% range.

If you want to learn how to negotiate a successful settlement, read Upsolve’s Guide to Beating LVNV Funding.

Can You Negotiate Every Past-Due Debt?

It depends on the debt. Negotiating is often an option for the most common types of past-due consumer debts, including credit card debt, medical bills, personal loans, and payday loans. Tax debt is also often negotiable, but the IRS has its own system for settling those debts. You can’t usually negotiate debts on mortgages or car loans because the lender can just take the property back. Federal student loans are also not negotiable, but there are many student loan forgiveness options. 

Option 3: Ignore the Debt (Not Recommended)

Ignoring a debt you owe is never a good idea, even if you cannot pay. It doesn’t make the debt go away and certainly doesn’t make the stress or anxiety caused by the debt go away.

What Happens if I Ignore LVNV Funding?

If you try to ignore the debt that LVNV Funding is attempting to collect, the consequences could include:

• Hurting your credit score, making it more difficult to secure loans or credit cards in the future

• Owing a greater amount in the long run as interest charges, fees, and, possibly, court costs accrue

• Getting sued (and facing a wage garnishment order if you don’t address the lawsuit)

The consequence with perhaps the greatest impact is dealing with the stress of LVNV Funding continuing to contact you and having the debt looming. Note: Although negative information on your credit card should drop off after seven years, the debt is still collectible as long as it’s within the statute of limitations.

Bottom line: Dealing with a debt collector is stressful, but you can do it! Build your confidence by doing research and learning your rights. Know you have options. Just by reading this article, you are well on your way to facing LVNV Funding and getting closure.

Can LVNV Funding Sue Me?

It is not likely that legal action will be LVNV Funding’s first tactic, but they can sue for unpaid debt. Debt collection lawsuits depend on many factors, including:

• State laws

• Wage garnishment restrictions

• The cost of court expenses, filing fees, and lawyers in your area

• How many debts you have in collections

• The amount you owe and whether the potential payout is worth the expense of a lawsuit

If you do get sued, you will often be served at your home with official court papers called a summons and complaint. This can be scary, but it is advantageous to answer the summons so you don’t risk losing the case and having a default judgment issued against you.

If you want to learn how to deal with a debt lawsuit from this company, read Upsolve’s Guide to Beating LVNV Funding.

Let’s Summarize…

LVNV Funding is a debt buyer that collects consumer debts from overdue credit cards and unpaid loans. If you are contacted by LVNV Funding, make sure to get a debt validation letter to verify that the debt is yours and the amount is correct. If you do owe them, consider negotiating a settlement agreement. You can often get the relief of paying off a debt without paying the full amount.