BBB Response From LVNV - Need Comments Please

[lazerz69]

Here is the response received from LVNV to my BBB complaint.  I am requesting comment on item 4 of the letter regarding the interest.  I am a little confused about reducing interest to zero.  If the charge off amount was 521.73 and this was from the original creditor GE Capital and LVNV can not find the "terms and conditions" then how can LVNV continue to increase the balance.

I hope the question makes sense.

Any and all comments and assistance would be greatly appreciated.

May 8, 2012

Mod Cut

408 N. Church St. Suite C

Greenville, SC 29601-2164

RE:      xxxxxxx; Case/File No. xxxxxxx

Previous Creditor:  GE Capital

Original Creditor:Lowes Visa Platinum

Current Owner:  LVNV Funding LLC

Account Number:  xxxxxxxxxxxx

Reference Number:  xxxxxxxxx

Current Balance:  $1,478.57

Dear Mod Cut:

This letter is in response to your correspondence dated April 23, 2012 regarding the above referenced account. LVNV Funding LLC (“LVNV”) currently owns account number xxxxxxxxxxxx. Resurgent Capital Services L.P. (“Resurgent”) is the master servicer of accounts owned by LVNV.  The account was previously sold by GE Capital (“GE”) on or about March 27, 2009 at which time the balance was $910.86. As of the date of this communication, the account balance is $1,478.57 which consists of a principal balance of $910.86 and interest balance of $567.71.  Because interest, payments, credits, fees, and/or other permissible charges can continue to cause the account balance to vary from day to day, you should contact us at 888-665-0374 to determine the exact balance. Please review the following account information:

1. GE advised that this account originated on November 1, 2005 and was opened with Lowes Visa Platinum (“Lowes”).
2. This account charged off on March 9, 2008 with a balance of $521.73.
3. No payments have been received on this account since LVNV’s acquisition in March 2009.
4. This account was accruing interest at a rate based on information provided by the seller; however, since we were unable to locate the terms and conditions, the interest rate has been adjusted to zero.
5. A credit bureau reporting notice was sent to Mr. xxxxx by NAFS, a collection agency assigned to collect on our behalf, on June 5, 2009.  

Please be advised all rights to collect were transferred to LVNV when this account was purchased from the previous creditor.  Therefore, this account is being reported to the three major consumer reporting agencies.  The original creditor also retains the right to report the history of this account from the origination date to charge off.  A request to update the LVNV tradeline to “disputed” will be submitted to the three major credit reporting agencies during the next reporting cycle. Please allow 30-45 days for this update to occur.

Mr. xxxxx’s letter asserts that LVNV “re-ages” accounts.  We believe he means the life of the debt has been extended for credit bureau reporting purposes by manipulating certain data, which is incorrect.  It is likely that he believes that the “Open Date” is used in the calculation of the 7-year life of his debt’s derogatory classification on his credit report.  This is not the case.  For debt purchasers, the credit bureaus use the “Open Date” field to capture the date that the account was purchased.  The “Open Date” is not used by the credit bureaus in calculating the 7-year life that derogatory information remains on a credit report.  The “Date of First Delinquency” is the date the credit bureaus use for determining the start of the 7-year reporting period.  This account is scheduled to be removed off Mr. xxxxx’s credit bureau report on or before December 9, 2013.

If, after review of the above referenced information Mr. xxxxx believes this account is fraudulent, a complete police/incident report regarding the fraud, or a notarized fraud or identity theft affidavit (blank forms are available at the FTC’s website: www.ftc.gov/idtheft) will help us resolve this complaint.  If this account was paid or settled in full, the settlement offer, cancelled check(s), and/or confirmation of payment in full would help us resolve this complaint.  In addition, if Mr. xxxxx has any correspondence to/from GE and or Lowes concerning his dispute, it may help with our investigation, so please have him forward it to:

Compliance Department    or     Fax:  866-467-0918

P.O. Box 10497                      

Greenville, SC 29603

If we do not receive additional information from you within 45 days of the date this letter is received, then we will assume this dispute is resolved.  If you have any further questions, comments or concerns, please contact Customer Service at 888-665-0374.

Sincerely,

Mod Cut

Compliance Department                                             

Resurgent Capital Services L.P.

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HI lazerz69 and welcome to the forums.

Personal information such as full names, direct phone numbers, home addresses, etc. are not allowed to be posted in the public forums.

MarineVietVet, myFICO moderator

[AndySoCal]

Please edit out all personal information yours and who responded please. 

[lazerz69]

No problem.  Sorry, I did not know that who responded was not allowed.  I will not let it happen again.

Thanks.

[pipeguy]

This is a fairly typical BBB response letter from LVNV. The "interest adjustment to zero" I have not seen before in one of their stock letters, and that is especially interesting because it more or less proves they have no documentation to this account. By documentation I mean original terms and condition, signed application, etc. Without proper documentation LVNV would have no chance of proving their claim (account, amount, new or old balance, etc) in court, but I suppose since their intent is just to pressure and harass for payment they don't need a true factual basis for their claim.

It seems to me that there is a case for false reporting under the Fair Credit Reporting Act since LVNV has admitted they don't have the proper audit trail. I kind of doubt LVNV will remove the tradeline just because of a BBB complaint, but my follow up (if it was my account) through BBB would be to list the FCRA violation they admitted to in their answer and demand the removal of the tradeline as "baseless" by their own admittance.

disclosure: I've been fighting LVNV for a couple of years with no success - tradeline due to drop off March 2013.

[lazerz69]

Pipeguy:  Thank you very much for taking the time to answer my post.

[drkaje]

Did I miss where DOFD was included in their response?

[jordanmedical]

I got a similar response too, I've read they are tought to PFD with but so well with GWs. Their tactics are inhuman IMHO.

[lazerz69]

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@drkaje wrote:

Did I miss where DOFD was included in their response?

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drkaje, thank you for responding to my post.  You did not miss the DOFD.  It was not specifically included in the response, but LVNV alludes to the DOFD because they say this item is expected to fall off the credit report "on or before December 2, 2013.

[lazerz69]

Also, LVNV is claiming that "Lowes" is the original credit with GE Capital as a subsequent creditor.  Lowes was never the original creditor.  The Lowes Visa was, IIRC, issued by GE Capital.  They are one-in-the-same original creditor.

[drkaje]

I've tried three times and something about those dates just doesn't add up.