LVNV Collection- Source Receivable

[Anonymous]

I have been reading the forums for the past couple of weeks and already have a great appreciation for all of the information that is provided. I am trying to assist an old friend in rebuilding his credit after a very bitter divorce. Additionally over the past three years he has been focused on providing the best treatment possible for his young autistic son and lost focus on the credit side of his life – now we need to focus on  fixing  it the best we can as quickly as we can.

The first thing I need some guidance on is a collection account that is shown as in collections with LVNV Funding LLC.  The Transunion annual credit report shows the estimated month and year that the item will be removed as 04/2012.

However, within the past week a letter from Source Receivables Management was received indicating that LVNV has placed the account with them and offering a special settlement of 33% of the balance. The original creditor was Citibank Sears Premier Card and the amount shown as due is $7356.65.

I have read about re-aging and I certainly don’t want to do anything that starts the clock ticking. Since the LVNV is due to remove soon should any communication be started with Source or is it just a last ditch attempt to recover any funds?

Thanks in advance for the guidance.

[pipeguy]

LVNV typically buys SOL late reporting accounts and acts as an "over seer" by subletting the account out to a handful of other collection firms. Their reasoning is they get to stay out of the DV, FDCPA, FCRA regulations but they will poison your credit report as leverage to collect. They also list themselves as a "factoring company" on credit reports, which they are not, but that's another story.

In my opinion, wait until April and let the account fall off the report, LVNV can NOT legally re-age the account. Do not be confused by the way LVNV uses their credit reporting, you'll find their listing shows the account "open", dates will be a year or two too new (but are not the actual DOLA or DOFD) and they'll add "interest and fees" every month so that its reported as a currently 120+ day over due account every month - more leverage.

I have nothing positive to say about LVNV and they way they do business. However, if you want to settle with them on this account, wait until there is NO added leverage to settle after it falls off your credit report in April - THEN contact them with an offer of 10% of their number as a final and complete payoff (keep any paperwork forever).