topic Lvnv funding, am I safe from lawsuit? in Rebuilding Your Credit

Lvnv funding, am I safe from lawsuit?

Anonymous — Fri, 07 May 2021 22:01:46 GMT

Lvnv funding is in possession of two of my accounts. They are around $1,800 and $1,500 each. My only source of income is social security disability. Resurgent has been emailing me for a couple of weeks and wanting me to set up a payment plan. Both of these debts were from credit One and honest to God I quit paying them because I had an absolute nightmare of a time with that company. I tried multiple times to make online payments that failed. I tried to make telephone payments and somehow they tried to pull one of them out of an old checking account I don't even have anymore. Long story short that created another $35 late fee that I tried to dispute and they refuse to remove it. They charged me $13 to send me a new card on one of the accounts when I lost mine. There was an unauthorized purchase for around $100 to a store I had never even heard of before and they refuse to remove it. I told them I wasn't paying the bill until they took it off. So that month was late and they charged me another late fee which they refused to take off. And so on and so forth and I finally said screw it. I am going to have a heart attack trying to deal with this ridiculous company. So it's completely my fault that I quit paying but I have read that LVNV sends you to a lawsuit attorney pretty quickly, as in 30 to 60 days after acquiring the account.

I am so utterly and unbelievably mad at credit One because what started out as being maybe $500 on each credit card has tripled in size with all of their fees and interest rates and now I have these two enormous amounts that I honestly cannot pay for.

What will happen if they do try to Sue me? I do not own a home. I do not own any assets of any kind except two vehicles. My wages are not garnishable because I do not have any. My only income is social security disability so I am guessing that they are not going to escalate my account for litigious collection? But maybe I'm wrong? I swear to God credit One is going to end up causing me a heart attack before this is all over.

Re: Lvnv funding, am I safe from lawsuit?

OmarGB9 — Sat, 08 May 2021 01:11:38 GMT

You're probably un-garnishable and judgment proof, so they probably wouldn't get very far if they did try to sue you in my opinion. However, I am not a qualified attorney, so I suggest getting a free consultation with an attorney and asking them these questions.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 03:01:49 GMT

@Anonymous wrote:
Lvnv funding is in possession of two of my accounts. They are around $1,800 and $1,500 each. My only source of income is social security disability. Resurgent has been emailing me for a couple of weeks and wanting me to set up a payment plan. Both of these debts were from credit One and honest to God I quit paying them because I had an absolute nightmare of a time with that company. I tried multiple times to make online payments that failed. I tried to make telephone payments and somehow they tried to pull one of them out of an old checking account I don't even have anymore. Long story short that created another $35 late fee that I tried to dispute and they refuse to remove it. They charged me $13 to send me a new card on one of the accounts when I lost mine. There was an unauthorized purchase for around $100 to a store I had never even heard of before and they refuse to remove it. I told them I wasn't paying the bill until they took it off. So that month was late and they charged me another late fee which they refused to take off. And so on and so forth and I finally said screw it. I am going to have a heart attack trying to deal with this ridiculous company. So it's completely my fault that I quit paying but I have read that LVNV sends you to a lawsuit attorney pretty quickly, as in 30 to 60 days after acquiring the account.

I am so utterly and unbelievably mad at credit One because what started out as being maybe $500 on each credit card has tripled in size with all of their fees and interest rates and now I have these two enormous amounts that I honestly cannot pay for.

What will happen if they do try to Sue me? I do not own a home. I do not own any assets of any kind except two vehicles. My wages are not garnishable because I do not have any. My only income is social security disability so I am guessing that they are not going to escalate my account for litigious collection? But maybe I'm wrong? I swear to God credit One is going to end up causing me a heart attack before this is all over.

@Anonymous first off I'm very sorry this happened to you. Second, what assets could be available to them varies by state law, but a second car is a possibility depending on state.

however with your situation I don't think you will be high on their list. What is the DOFD?

When you received your first communication from them, they were required within five days to give you a Dunning Notice; many do this in the first communication.

Either way if within 30 days of Notice, you request debt validation, it will impose a cease contact bar preventing them from harassing you or contacting you unless it is via court process until and unless they validate the debt, which they may be able to do. But it might buy you some peace of mind.

this does not remove it from your credit report, but it does stop them from contacting you. It should be removed approximately 7 years from the DOFD.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 09:51:16 GMT

I don't know what a Dunning notice is but they just email me saying to set up an account on their site and create a payment plan. I'll look into this notice further because I gave not received anything like that.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 13:20:49 GMT

@Anonymous A dunning notice is a collection letter sent to the defaulting debtor demanding payment by the creditor. It doesn't have to be a letter either, an email or fax works too.

You have within 30 days of first contact from the collector contacting you to send them a certified letter requesting they validate the debt. Once a debt validation letter has been sent the collector must cease contact until they have proven the debt.

Based on your situation I think you are probably judgment proof. They will not be able to garnish any of your social security disability benefits. SSDI benefits cannot be garnished by creditors, including credit card companies, mortgage lenders, or auto financing companies, to satisfy a debt. These benefits can only be garnished by the federal government.

That said I would recommend a free consultation from an attorney in your area to make sure you are judgment proof when it comes to the two vehicles.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 13:42:41 GMT

It looks like my state has no specific vehicle exemption but allows $10,000 of personal property to be held as exempt and you can choose to keep your vehicle. My two vehicles are old but the one is a diesel truck that still has a blue book value of $25,000.... Ugh! I'm trying to figure out if I qualify for bankruptcy but I need over 10,000 in debt and I am at about $9,500. I guess on Monday I will try to call resurgent and see if they are willing to work with me at all on these two accounts so that I can get the payments down to a reasonable amount. They do offer a 48 month payment plan but that still puts me at nearly $70 for the both accounts plus I have my discover, capital one and American Express cards that I am keeping current and trying to pay off plus I have two other credit card collections.

Re: Lvnv funding, am I safe from lawsuit?

gdale6 — Sat, 08 May 2021 16:00:14 GMT

2 months worth of disability payments are safe from bank levy, all other amounts and deposited items can be garnished if they get a successful judgment if your state allows garnishments of bank accounts (some dont). If you made a written agreement with LVNV and began payments then the SOL was reset.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 17:04:53 GMT

@gdale6 the two months of SSDI would be related to the balance of the bank account in question correct?

Re: Lvnv funding, am I safe from lawsuit?

gdale6 — Sat, 08 May 2021 17:12:58 GMT

@Anonymous wrote:
@gdale6 the two months of SSDI would be related to the balance of the bank account in question correct?

Yes 2 months worth in the bank account its deposited into. Once the money moves out of that account to any other bank account its fair game.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 22:20:46 GMT

@Anonymous wrote:
It looks like my state has no specific vehicle exemption but allows $10,000 of personal property to be held as exempt and you can choose to keep your vehicle. My two vehicles are old but the one is a diesel truck that still has a blue book value of $25,000.... Ugh! I'm trying to figure out if I qualify for bankruptcy but I need over 10,000 in debt and I am at about $9,500. I guess on Monday I will try to call resurgent and see if they are willing to work with me at all on these two accounts so that I can get the payments down to a reasonable amount. They do offer a 48 month payment plan but that still puts me at nearly $70 for the both accounts plus I have my discover, capital one and American Express cards that I am keeping current and trying to pay off plus I have two other credit card collections.

@Anonymous then you would choose the more expensive vehicle if it ever came down to that. It's very likely they may never come after you. But if you do initiate a payment plan or make a payment or agree to make payments, you restart the SOL and open yourself up to a lawsuit again.

you may want to think about that. Even if they decided to come after you, it's a long way to the end to get a judgment. And then after that, they have to do post judgment proceedings to take anything.

you should really speak to qualified counsel in your area. I would tread cautiously and try to avoid restarting the SOL. Did you mention the DOFD or whether it was out of SOL?

Re: Lvnv funding, am I safe from lawsuit?

Brian_Earl_Spilner — Sat, 08 May 2021 22:32:03 GMT

Everyone likes to throw "judgement proof" around, but there really is no such thing. You can be sued and a judgement entered, which can be renewed indefinitely in most states. @gdale6 posted some of the rules and even if you don't have enough to be garnished, as long as the judgement is enforceable, they will seize any windfall you receive as well as make a move on your estate upon death.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 23:07:13 GMT

This is very new debt and the date of first delinquency on both of these accounts is about 6 months ago so starting the statute of limitations all over again really wouldn't matter. I can understand where that's an issue on very old debt

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 08 May 2021 23:10:00 GMT

So say that they were to seek a judgment against me and they won and then they pursued the judgment proceedings and won that so they can legally seize any money or inheritance or a state that I should get say 20 years from now..... Wouldn't they only be able to cover the amount of the delinquency plus any Court costs? Or are you guys saying that when I inherit my family's farm that's valued at $400,000 that they can just take the whole farm from me? I find that terrifying to think they can take a $400,000 property on a $3,000 debt but is that what you're saying actually happens?

Re: Lvnv funding, am I safe from lawsuit?

gdale6 — Sun, 09 May 2021 00:25:40 GMT

@Anonymous wrote:
So say that they were to seek a judgment against me and they won and then they pursued the judgment proceedings and won that so they can legally seize any money or inheritance or a state that I should get say 20 years from now..... Wouldn't they only be able to cover the amount of the delinquency plus any Court costs? Or are you guys saying that when I inherit my family's farm that's valued at $400,000 that they can just take the whole farm from me? I find that terrifying to think they can take a $400,000 property on a $3,000 debt but is that what you're saying actually happens?

Judgments can be renewed pretty much forever in most states. Its not just what you owe now + court costs but interest that legally gets added on along with fees for a writ of execution or any other thing they may drag you into court for to force you to give up where your assets are, so yes if you were to inherit they could file a lien against it and depending on your states laws force a sale of it if you cannot settle it. I would settle with them now for less than owed if you can. You would always have BK available years down the road as well.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sun, 09 May 2021 00:29:40 GMT

@Anonymous wrote:
So say that they were to seek a judgment against me and they won and then they pursued the judgment proceedings and won that so they can legally seize any money or inheritance or a state that I should get say 20 years from now..... Wouldn't they only be able to cover the amount of the delinquency plus any Court costs? Or are you guys saying that when I inherit my family's farm that's valued at $400,000 that they can just take the whole farm from me? I find that terrifying to think they can take a $400,000 property on a $3,000 debt but is that what you're saying actually happens?

@Anonymous first they pursue the proceedings to obtain the judgment. Then afterwards, if you have assets to go after, they initiate a post judgment action to do so.

If 10 years from now you get the farm, at that time they can institute post judgment proceedings most likely to be compensated for the amount of judgment plus interest accrued at the rate set by your state statute per annum, plus any awarded/statutory court costs or fees which may vary by jurisdiction. Consult your local laws or qualified counsel.

Re: Lvnv funding, am I safe from lawsuit?

Brian_Earl_Spilner — Sun, 09 May 2021 00:34:58 GMT

@Anonymous wrote:
So say that they were to seek a judgment against me and they won and then they pursued the judgment proceedings and won that so they can legally seize any money or inheritance or a state that I should get say 20 years from now..... Wouldn't they only be able to cover the amount of the delinquency plus any Court costs? Or are you guys saying that when I inherit my family's farm that's valued at $400,000 that they can just take the whole farm from me? I find that terrifying to think they can take a $400,000 property on a $3,000 debt but is that what you're saying actually happens?

Yes. You'll be forced to sell and receive any leftover money from after the judgement is fulfilled. Some people think they can homestead a property to protect it, but all a homestead does is protect up to a certain amount. Whatever isn't protected will be used to satisfy the judgement and the excess will be returned to you, if there is any.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Tue, 25 May 2021 16:56:29 GMT

I can't speak for other states' laws, but in Florida they cannot force the sale of a Homestead in such a manner; it is protected from forced sale, not just to a certain amount.

Edit: After a cursory Google it appears that Florida may have some of the strongest Homestead laws in the country.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Tue, 25 May 2021 15:46:39 GMT

Chiming in to say to be careful with them. LVNV is currently trying to sue me for $865 (a Credit One account that went to collections in late 2018 b/c I was unemployed and couldn't pay the bill). Currently trying to get it dismissed because I was never served, but it's a pain! I'm not trying to be a Debbie Downer, but just wanted to give you a heads up that they do tend to be judgment happy.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Wed, 26 May 2021 04:46:46 GMT

There's a bunch of back and forth here so maybe this will help.

1. Find out what the first date of deliquincy was for those accounts.

2. Check to see what the statute of limitations is for your state or the state you lived in when you opened the accounts with Credit One.

3. If today is outside the SOL then they can't sue you and do not admit the debt is yours. Also, do not set up a payment arrangement or plan.

(caveat: They can try to sue you outside of SOL but all you have to do is tell the judge the debt is time barred. This is not legal advice as I'm not an attorney)

4. If you are outside of the SOL for your state or the state in which you opened the accounts and ONLY if, call and ask Resurgent (LVNV) for their 'compliance department' (it's a thing... I just did this) and offer to pay half of each account in exchange for them deleting the collections (pay for delete). They don't have a letter they will send you stating as such but everything is on a recorded line. Obviously have the cash available to pay these amounts right then and there with a debit card. They do not accept credit cards. I tried... hoping I could get my cash back rewards. It was worth a shot.

I just did the exact above with them for an almost 6 year old collection.

Re: Lvnv funding, am I safe from lawsuit?

Anonymous — Sat, 29 May 2021 14:11:07 GMT

I ended up creating a payment plan for the two accounts. I can't afford it but I can't afford to be sued either. The stress of that would kill me.