These days, it is all too easy to find yourself in debt. The truth of the matter is that if you promised to pay, whether through revolving credit, promissory note, or by verbal agreement, you do legally owe the money. With the state of the world these days, it is easy to just want to ignore the notices and phone calls, but debt collections will eventually pursue a judgment against you which cannot be ignored.
If you are receiving collection notices from LVNV Funding, you may be tempted to ignore them. Once the phone calls start, you will wish that you had never heard of them.
LVNV Funding, LLC is a junk debt buyer, meaning it is a company that purchases credit card debt or delinquent loans that have been charged off. Once they have purchased a debt, They have been known to aggressively pursue debt holders. Once the debt has been purchased, their efforts to collect that debt can seem almost smothering.
Failure to recover the debt through harassment can result in hiring a local collection attorney to file a lawsuit aimed at recovering that debt. If you have received notice that you are being sued by LVNV Funding, LLC, then you need to speak with a debt lawsuit defense attorney. If you live in Texas, you can call the attorneys at Warren and Migliaccio, o help you avoid judgment.
Who Is LVNV Funding, LLC?
If you are unfamiliar with the company’s name, you may be quite confused when you receive notice that you are being sued. Owned by Sherman Financial Group and managed by Resurgent Capital Services, LVNV Funding, LLC is a company that purchases debts that have been written off by the lender. These are most often credit card debt, but could also include personal loans or installment loans. A few of the companies that LVNV purchases these debts from include..
Once they have purchased a debt, the company aggressively pursues the debt holder with phone calls. They are so aggressive that class action suits are pending against the company for harassment, and the Federal Trade Commission has issued guidelines to regulate debt collection practices.
What To Expect If You Are Contacted By Or Sued by LVNV Funding, LLC?
Their initial phone call is traditionally an offer for a debt settlement to resolve the outstanding balance. They may even offer you a discounted one-payment option as long as you act quickly. If you do not accept their offer, they will do everything within their power, legally and often crossing the line into harassment, to collect funds. Every phone number they have to contact you, including people who provide references, will start getting phone calls about you. They will not hesitate to report you to the credit bureau (TransUnion, Experian, and Equifax). If LVNV Funding, LLC is unsuccessful in making contact or they make contact and you refuse to pay, the next step is to file a lawsuit. Debt buying collection agencies, like LVNV, will file a lawsuit in district court in hopes of receiving a default judgment against you.
They are usually ill-equipped to go up against you in court. The collection agencies are usually represented by a licensed debt collector or attorney who is hired to appear on behalf of the debt buyer in court, but will not have sufficient documentation or knowledge about your particular case.
Thousands of these suits are filed by LVNV Funding each year and the amount being sued for is often twice the amount of the original debt or more. Upon receiving notice of the suit, debt holders are often embarrassed and unsure how to handle the situation. The uncertainty causes many people to simply ignore the situation hoping it will resolve itself.
If they challenge you in court, your best bet is to retain an attorney and respond to the lawsuit.
Weaknesses of Debt Collection Lawsuits
When collection agencies such as LVNV Funding pursue a collection lawsuit against those who find themselves in collections, some weaknesses are hard for them to overcome. These weaknesses include:
- When they take legal action, it is in hopes that the consumer will not show up in court so that they can get a default judgment against them.
- Some of the accounts they purchase, particularly as a passive debt buyer, are too old to be enforced by any legal means.
- Quite often, the real chain of custody of who actually owns the debt is unclear.
- When debts are bought in large batches, the individual who signs the affidavits that attest to direct knowledge that the debt is real is often signing hundreds when they do not know of any of the details of the individual debts.
What Not To Do
Nothing. Many of the lawsuits filed by LVNV Funding go uncontested. The debt holder, unsure of what to do, does nothing. If you are being sued by the company and you do not respond or show up in court, LVNV Funding will be awarded the full judgment amount they have requested. A judgment can result in garnished wages, frozen or garnished bank accounts, or a lien against your property. The judgment will likely be listed on your credit report as well, making it public knowledge.
What To Do If You Are Sued by LVNV Funding, LLC
File an Answer to the Lawsuit and determine if you should retain an attorney to help you. Appearing in court shows good faith, but if you are confused and unsure of what to say, the judge will most likely still award LVNV Funding, LLC the full judgment amount requested. Knowing the laws and how they apply to your unique situation requires an experienced debt lawsuit attorney. LVNV Funding makes big money off of these uncontested lawsuits. Having a legal professional to advise you greatly increases your odds of having the debt collection lawsuit dismissed or settled before court.
Law Firms that sue and file lawsuits for LVNV:
Possible Consequences of a Lawsuit with LVNV Funding
When facing a LVNV Funding LLC lawsuit, several outcomes are possible:
- Victory in Court : If you successfully defend against LVNV’s claim, the court may dismiss the lawsuit , and no judgment will be entered against you.
- Defeat in Court : If LVNV wins the lawsuit, a judgment will be entered against you , making you legally obligated to pay the debt, including any additional fees or interest.
- Settlement Agreement : In some cases, LVNV may offer a settlement agreement , where you agree to pay a portion of the debt in exchange for dropping the lawsuit. This can be a viable option if you’re unable to pay the debt in full and want to avoid a judgment being enforced against you.
- Default Judgment : If you fail to respond to the lawsuit or miss a court hearing , LVNV may win the case by default, resulting in a judgment against you. This judgment can be enforced. against you through bank garnishment and other legal actions taken against you and your property.
The outcome of the lawsuit is never guaranteed and largely depends on the evidence presented by both parties. Your consumer status gives you the upper hand in Protecting your interests at every stage. Legally, individuals have the right to argue the debt’s validity and seek professional legal advice.
Benefits of Retaining a Debt Defense Attorney
When you retain an attorney to help you with the lawsuit against you, the attorney can:
- Advise you of your rights.
- Help you with the preparation of your response.
- Request a dismissal of the case against you.
- Investigate your case.
- Take action if the debt collection agency is abusive towards you.
- Assert any defenses, such as the statute of limitations having expired on the debt.
- Negotiate a settlement if appropriate.
- Advise you of all of your options.
At Warren and Migliaccio, LLP in Texas, our attorneys have the knowledge and experience to guide you in developing a legal strategy to handle your lawsuit head-on. Contact us today to schedule a free consultation of your case.
Do not let companies like LVNV Funding harass and bully you into paying without speaking to a lawyer first. A lawyer is your best way of protecting yourself and your interests.
LVNV Funding has attorneys working for them and so should you. Lawsuits and judgments do not go away on their own. Contact Warren and Migliaccio, LLP Attorneys At Law today to schedule your free consultation and start planning your legal strategy. You do not owe just because they say so.
