LVNV Funding: How Did It End Up on My Credit Report?

If you have ever checked your credit report and noticed LVNV Funding listed as a debt collector, you might be wondering who they are and how they ended up on your report. LVNV Funding is a debt collection company that purchases charged-off debts from credit card companies, banks, and other lenders for pennies on the dollar. They then try to collect as much of the debt as possible from the original debtor.

However, what many people don’t realize is that if LVNV Funding purchases their debt, they have the right to report it to the credit bureaus. This can result in a negative impact on your credit report and lower your credit score.

LVNV Funding is a subsidiary of Resurgent Capital Services, which is a debt collection company founded in 1998. Resurgent Capital Services purchases defaulted debts from original creditors, including credit card companies, banks, and other lenders. Once they acquire these debts, Resurgent Capital Services assigns them to LVNV Funding for collection.

LVNV Funding’s primary business practice involves purchasing charged-off debts and then using a variety of methods to collect on the debt. They may employ third-party debt collectors, file lawsuits against debtors, or even garnish wages or place liens on property.

It’s important to note that LVNV Funding has had a history of legal disputes regarding its debt collection practices. In 2018, the Consumer Financial Protection Bureau ordered LVNV Funding to pay $2.5 million for violating the Fair Debt Collection Practices Act. The violations included misrepresenting the amount owed by consumers, failing to disclose that debts were too old to be legally enforced, and attempting to collect on debts that were discharged in bankruptcy.

LVNV Funding is a debt collection company that purchases charged-off debts from creditors and attempts to collect on them. If they purchase your debt, they have the right to report it to the credit bureaus, which can negatively impact your credit report. However, it’s important to understand that LVNV Funding has had a history of legal disputes regarding their debt collection practices.

Debt buying and selling process: When an individual defaults on a debt owed to a creditor, the creditor may decide to sell the debt to a third-party debt collector like LVNV Funding. This is known as the debt buying and selling process. The debt is sold at a discounted price, and the debt buyer is now the legal owner of the debt.

LVNV Funding as a creditor: LVNV Funding is one of the largest debt buyers in the United States. It specializes in purchasing delinquent consumer debt, such as credit card balances, auto loans, and personal loans. Once LVNV Funding purchases the debt, it becomes a creditor and can legally pursue the debtor for payment.

Reporting debt to credit bureaus: LVNV Funding can report the delinquent debt to the three major credit bureaus, Experian, TransUnion, and Equifax. The debt will then appear on the debtor’s credit report, negatively impacting their credit score. The debt will remain on the credit report for up to seven years, even after it has been paid off.

Fair Credit Reporting Act (FCRA) and consumer rights: Under the Fair Credit Reporting Act (FCRA), consumers have the right to dispute inaccurate or incomplete information on their credit report. This includes any entry related to LVNV Funding. The FCRA also requires credit bureaus and creditors to investigate disputes within 30 days of receiving them.

Disputing LVNV Funding’s appearance on your credit report: To dispute LVNV Funding’s appearance on your credit report, consumers can contact the credit bureaus and provide evidence that the debt is inaccurate or does not belong to them. The credit bureaus will then investigate the dispute and remove any inaccurate or unverifiable information.

Negotiating with LVNV Funding to remove their entry on your credit report: Consumers can also negotiate with LVNV Funding to remove their entry on the credit report. In some cases, LVNV Funding may agree to remove the entry in exchange for a partial payment or a settlement. However, it is important to get any agreement in writing before making any payments.

LVNV Funding has faced legal action and settlements over the years due to their debt collection practices. One notable lawsuit was brought against them in 2015 by the Consumer Financial Protection Bureau (CFPB) for violating consumer protection laws. LVNV Funding was accused of knowingly collecting on illegal debts, failing to disclose required information to consumers, and using deceptive practices to collect debts.

In 2018, LVNV Funding settled with the CFPB for $3.5 million, agreeing to stop collections on over 3,500 debts and to correct credit reporting for affected consumers. This settlement highlights the importance of understanding your rights as a consumer and the potential consequences for debt collection companies that engage in unlawful practices.

If you have LVNV Funding on your credit report, it’s important to check if you are eligible for a settlement or class action lawsuit against the company. Class action lawsuits can be filed when a large group of consumers has been harmed by a company’s actions, and settlements may be reached that can provide compensation or debt relief.

In conclusion, LVNV Funding is a debt collection company that may end up on your credit report if they purchase your debt from an original creditor. However, as a consumer, you have rights under the Fair Credit Reporting Act (FCRA) to dispute any inaccurate or incomplete information on your credit report, including entries from LVNV Funding.

If you are dealing with LVNV Funding on your credit report, it’s important to take action to protect your credit score and financial well-being. You can dispute their appearance on your credit report and negotiate with them to remove their entry. Additionally, if you have been harmed by LVNV Funding’s practices, you may be eligible for a settlement or class action lawsuit.