LVNV Funding LLC is a debt buyer, which means it buys delinquent consumer and business debts from original credit grantors and other debt buyers. Debt buyers typically purchase delinquent accounts in a bulk sale agreement with the original creditor, often for pennies on the dollar and without any guarantees about the accuracy of the debts. According to the Nolo law website, what causes problems for debtors is a tendency among debt buyers to start collection activities without first determining whether the debt or the amount is valid.
Sharing the Debt Collection
LVNV typically outsources the debt collection activities to a third-party. According to the company website, LVNV transfers most of them to Resurgent Capital Services, a licensed debt collector. Resurgent can outsource the debt collection activities to yet another independent collection agency. All this means that although you may see the LVNV company name on your credit report, LVNV is most likely not the company actually handling your account.
Follow the Paperwork
Don't ignore any paperwork you get if you need to contact someone about the debt. According to the Nolo law website, most collection letters will state in the initial contact not only that the company has bought the debt, but also from whom. For example, if LVNV transfers your account to Resurgent, the letter should include both company names. If Resurgent transfers your account, you may see three company names. According to LVNV, the company to contact is the firm currently handling your account.
Problems Relating to LVNV Policies
LVNV has a documented history of trying to collect on debts not legally owed. According to Nolo, this happens because, like most debt buyers, LVNV does not validate debts for accuracy before starting collection activities. For example, in an October 2011 lawsuit against LVNV and Resurgent filed in Baltimore, Maryland, the Maryland State Collection Agency Licensing Board found both companies guilty of violating numerous state and federal laws on more than 3,500 cases. Charges included improper licensing, filing false or misleading claims and misrepresenting the amounts of debt collection claims.
Consumer Legal Protections
The Fair Debt Collection Practices Act provides a way for you to fight back if you believe LVNV behaves improperly or unethically. A procedure called debt validation gives you the right to request written proof of the debt owed from LVNV. If LVNV cannot provide either the original credit agreement or a certified copy, a letter of assignment transferring ownership, and calculations supporting the debt amount, it must correct or forgive the claim. To assist you, the Consumer Financial Protection Bureau has a number of validation letter templates on its website. Another option is to file a complaint with the Better Business Bureau and the Consumer Financial Protection Bureau.