LVNV Funding is a large debt buyer that purchases delinquent accounts domestically and internationally from original creditors and other debt buyers. The collections on those accounts are outsourced to Resurgent Capital Services LP, a third-party debt collector. Resurgent itself may outsource the accounts to third-party collection agencies.
When debt changes hands and lands with a third-party agency, it may confuse a consumer unfamiliar with these companies. That’s why it’s important to carefully review any “goodbye” notices from your creditor and collection letters from a debt buyer or collector. A goodbye notice is a letter from your original creditor informing you of the sale of your debt. Debt buyers like LVNV can purchase portfolios of accounts that creditors have charged off. If LVNV has purchased your debt, it can seek repayment directly from you or hire a collection agency to contact you for payment.
LVNV is fairly accessible to consumers, says Michael Bovee, co-founder of Resolve, who speaks with clients regularly about dealing with debt buyers. So it is possible to contact LVNV directly if it’s purchased your debt. However, it is likely it will direct you to the collection agency managing your account. Before you contact LVNV, Resurgent or other debt collectors, there are a few steps you should take to determine how best to respond.
If you’ve received a letter from LVNV or Resurgent, your first step is to review the information it contains. If the letter is from another third-party collection agency, look for who currently owns your debt. Also, determine if the information is correct — is this your debt, is the amount correct, etc. Then check to see if the statute of limitations has expired. The statute of limitations is the period in which legal action can legitimately be taken to recoup outstanding debt. The period varies by state, so check this chart to see your state’s time limit.
Once you’re clear about the details of the debt that the letter discusses, , you can determine how best to respond, including:
- If the information is incomplete, incorrect or you want to ensure LVNV has the documentation to back up its claim, you can send it a request to validate the information. It is wise to send this via certified mail, return receipt requested.
- Challenge the information if it is incorrect. Send a letter informing LVNV of any misinformation that helps establish that you are not required to pay this debt.
- If the debt is outside the statute of limitations, you still have a responsibility to pay it, but the collection agency cannot threaten a lawsuit. It may encourage you to make a small payment against this debt, but watch out: By doing so, you could unwittingly restart the clock on the debt and open yourself to a lawsuit. It may be wise to seek legal counsel from a consumer law attorney to determine the best way to respond; many offer a free consultation.
- If this is your debt, the information in the collection letter is correct and the debt is still within the statute of limitations, you might consider negotiating a settlement to pay a percentage of the balance owed. It is important to have the settlement agreement in writing from LVNV or Resurgent, though a letter from the third party agency they have contracted with to collect from you will often suffice. Make sure the agreement states that once the last payment for the negotiated amount posts, the account will be considered paid in full or settled. You can learn more about debt settlement here.
Whether you are dealing with your original creditor or a debt buyer such as LVNV, much of your process is the same. As you consider how to handle the debt now that it is with a new owner, you can use Resolve’s online platform to help you assess your options or contact Resolve experts, who are available to consult with you for free. Get started here.
Read our article “What is a Debt Buyer and Why Should I Care?” to learn more about this industry.