The short answer is yes, LVNV Funding LLC is a legitimate company. They purchase debt, similar to companies like Midland Credit Management, Portfolio Recovery Associates, and Cavalry Portfolio Services. Most likely, you learned about LVNV Funding because they sued you and served you with a lawsuit, or they appeared on your credit report. If this is the case, you are not alone.
What is LVNV Funding LLC?
LVNV Funding, which has been in business since 2005, purchases defaulted debt from credit card companies and personal loan lenders. Because the debt is old, in most cases, they can buy it for pennies on the dollar. They try to collect the full amount through collection letters and phone calls or will file a lawsuit to collect the money. At the time of this writing, they file the most debt collection lawsuits in Chicago and suburban Cook County, DuPage County and Lake County, Illinois.
But often, they won’t contact you to collect. They’ll go straight to a lawsuit and sue you. If you were sued for a debt, it’s natural to investigate your options, especially if you’re headed to Cook County Court against LVNV, a formidable opponent. Have you
already received an LVNV funding lawsuit and court summons? It’s imperative to hire an experienced consumer law attorney to help guide you through the process.
Why am I just hearing of LVNV now?
There could be a few reasons you only learn of LVNV Funding at the time of lawsuit or credit reporting. As we mentioned earlier, LVNV purchases old debt, which might be from a credit card company or a loan that you had with a creditor with whom you would be familiar. Additionally, LVNV is the debt owner; they outsource the debt collection management to Resurgent Capital Services.
How is Resurgent Capital Services Connected?
Before the lawsuit, you may have heard from Resurgent Capital Services, a licensed third-party debt collector specializing in debt collection. Resurgent may have contacted you directly or had one of their collection agency partners contact you.
Why Is My Debt Being Sold?
When you open a credit card, take out a loan, line of credit, or even generate a balance somewhere like a doctor’s office or hospital, that company will usually attempt to collect the debt from you in the short term.
However, many of these companies have limited collection departments and sell the debts to debt buyers and collection agencies. These collection agencies are much more aggressive in their efforts to get you to pay the debt because their only purpose is to collect the debts they bought for pennies on the dollar.
Once they have purchased these debts, debt collection agencies then begin a campaign to get you to pay them. Such a campaign can include letters, phone calls, and even behavior that’s illegal and harassing. For example, many consumers don’t realize that a debt collection agency will sometimes sue someone for a debt after the statute of limitations, the time they’re allowed to sue for a debt, has expired.
Or they’ll use deceptive tactics such as trying to get someone to make a small payment, even $10, that can reset the statute of limitations so LVNV can now sue them.
Debt Collectors often use threats and claims of legal action to get a consumer to pay up or settle the debt. They rely on the fact that most consumers might not be aware of their rights and will either ignore the collector or pay the debt just to get the collection efforts to stop.
Debtors have rights, and they can take legal action against debt collection agencies who cross the line, such as those telling you they are with the police department, calling you at work after you’ve asked them to stop, or lying about the amount of money you owe or its current status regarding the statute of limitations.
What Should I Do When I Get A Summons from LVNV LLC?
If you have received a summons from LVNV Funding LLC, it is important to remember, it is an enormous company that buys so much debt that often, all it receives is a spreadsheet of data with your name, number, and the amount of debt you owe. Once they file a lawsuit, LVNV Funding has the burden of proof to prove the following:
- They own your debt
- The have the documentation to prove they own your debt
- The debt amount is correct
- Your information in the lawsuit is correct
If they can’t meet the burden of proof, there is a good chance the court can and will dismiss your lawsuit. However, it is critically important that you respond to the summons. If you do not respond, several things will likely happen:
- LVNV Funding LLC will get a default judgment against you, meaning you lose and the case is over.. Once you have defaulted, you will not be able to defend yourself. Though we have been able to help people within a few weeks of being defaulted.
- LVNV will then enforce the judgment against you by freezing bank accounts, ordering your employer to garnish your wages, or getting liens on property. In Illinois this can continue for 27 years and they can add 9% interest annually.
Contact Chicago Consumer Law Center, P.C.
Our consumer protection lawyers have a track record of protecting consumer rights and explaining your options to you when a company like LVNV Funding takes you to court before they get a default judgment against you. Although the earlier you contact us, the better, no matter where you are in the process, you deserve to know your rights and what to expect. Give us a call at (312) 858-3240 or complete our online form to schedule your free strategy session.
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The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.