Who is LVNV Funding?

LVNV Funding LLC is a debt buyer that purchases portfolios of old consumer debts from original creditors, such as credit card companies, and attempts to collect on them. They are a subsidiary of Resurgent Capital Services and are known for filing lawsuits to recover these debts. While LVNV is a legitimate company, they have faced numerous complaints and lawsuits for alleged unfair debt collection practices.

Common Problems and Claims Against LVNV

LVNV has been the subject of various lawsuits and consumer complaints, often related to violations of the Fair Debt Collection Practices Act (FDCPA). Some key issues include:

• Lack of Proper Documentation: LVNV often fails to provide adequate proof of debt ownership or the original account details when challenged in court. This includes missing contracts, statements, or chain of title documents.
• Collecting on Time-Barred Debts: They have been accused of attempting to collect debts beyond the statute of limitations without proper disclosures, which can violate the FDCPA.
• Ignoring Defenses to Underlying Claims  Sometimes a company will have problems with a group of loans and violate consumer protection laws.  They do not file claims but instead refer them to a debt buyer.  Note the debt buyer should be subject to the underlying claim. 
• Misleading Communications: Sending deceptive letters that misrepresent the debt's status or fail to inform consumers of their rights.
• FDCPA Violations: Multiple class actions have alleged improper collection tactics, such as filing proofs of claim on discharged bankruptcy debts or misidentifying debt owners.
• Robocalls and Harassment: Unauthorized automated calls without consent, leading to FDCPA claims.

Notable lawsuits include Crawford v. LVNV Funding, LLC, which addressed FDCPA roles in bankruptcy, and Scott McMahon v. LVNV Funding, LLC, involving FDCPA violations. In Massachusetts, over 18,000 lawsuits were filed by LVNV between 2010 and 2015, leading to legal scrutiny.

Common Defenses Against LVNV Claims

If LVNV is contacting you or has filed a lawsuit, here are some potential defenses based on common strategies:

• Seek Arbitration  Many underlying claims provide for arbitration to prevent class action claims.  However, arbitration can be favorable to the cvonsumer, involve costs shouldered by the debt buyer, and many will settle once arbitration is asserted.  
• Request Debt Validation: Under the FDCPA, you have the right to request validation of the debt within 30 days of initial contact. LVNV must provide proof, and if they can't, they must cease collection.
• Statute of Limitations: Check if the debt is time-barred. The SOL varies by state (e.g., 3-10 years for credit card debt). If expired, you can raise this as a defense.
• Challenge Ownership and Documentation: Demand proof of the chain of title and original creditor documents. Many cases are dismissed due to insufficient evidence.
• FDCPA Counterclaims: If LVNV violated the FDCPA (e.g., misleading letters), you can countersue for damages, attorney's fees, and up to $1,000 per violation.
• Gather Evidence: Collect all correspondence, check credit reports, and document any harassment.
• Settlement: If the debt is valid, negotiate a settlement for less than owed, but get it in writing.

Steps to Take If Sued by LVNV

1. Don't ignore the summons and complaint—respond within the deadline (usually 20-30 days).
2. Contact an attorney specializing in debt defense.
3. If you are handling on your own and LVNV agrees to an extension, confirm that in writing and that no default will be entered. ,  
4. File an answer to the complaint, raising defenses like those above.
5. Request discovery to force LVNV to produce evidence.
6. Consider bankruptcy if debts are overwhelming.

Resources

• Check the underlying creditor for claims including searches on Consumer Financial Protection Bureau (CFPB): 
• Consult National Consumer Law Center (NCLC): Guides on debt collection defenses.
• State Bar Associations: Find local attorneys.
• Legal Aid Services: For low-income individuals.

Remember, knowledge is power in dealing with debt collectors like LVNV. Act promptly and seek professional help to protect your rights.