Credit One to LVNV Funding to Credit Control, LLC - HELP

[0REDSOX7]

Hello all,

I am writing to you on behalf of my sister - who, to be honest, is not quite sure to how to proceed (and quite frankly, neither am I).  My sister, many years back, enrolled in a Credit Counseling program.  She told me that, last year – the original company went “belly up” – and transferred her to a new credit counseling company.  From what it seems – that company failed to included Credit One – who, was paid up until the transfer (back in 2015).  My sister admits she should have caught this – but overlooked it.  Yesterday, she receives a letter in the mail from a company called Credit Control, LLC.  On the letter, it says the original creditor was Credit One.  Current creditor is LVNV funding, but this company is attempting to collect on who’s behalf?  Credit One?  LVNV?  She knows and acknowledges the debt is hers – but, does not feel comfortable paying the Credit Control, LLC company. The original debt is for $986.44.  They, in the letter, offered three settlement options.

• 60% off – lump sum payment
• 50% off – 6 monthly payments
• 40% off – 12 monthly payments

I told her, despite knowing the debt is hers, that she should request a debt validation from them – but, the question is, from who?  LVNV is current creditor, so should it be to them?  From this Credit Control company?  I told her not to call them – but also, the fine print says that her account will be considered “resolved”  and no further action is required.  The collection is on her report from LVNV Funding – so, not sure if this settlement is even valid?  What's to say that she pays the lump sum - then the "balance" is sold to someone else - and this keeps on occuring.  Trying to get the DoFD - but not sure its beyond the SOL for North Carolina.

Thoughts from the gurus out here on how to proceed?

[StartingOver10]

There is one piece of info that might help you in this:  Credit One and LVNV are wholly owned companies of Sherman Financial.

https://en.wikipedia.org/wiki/Credit_One_Bank

I haven't checked Credit Control LLC yet.  

[0REDSOX7]

Thanks.  I did not know they were the same company.  Just odd that a collection agency (LVNV funding) would send it to another agency to collect.  Just seems fishy... She's going to do the lump sum via cashiers check - sent via Certified Mail with Return Receipt.  That's the best I think since she wants it settled.

[RobertEG]

A debt collector who has purchased a debt may, for various reasons, decide to hire another debt collector as their agent to pursue collection on the debt.

A normal reason may be that the state of residence of the consumer requries licensing/bonding by any debt collector who is conducting collection activities in their state, and the owning debt collector may not be licensed/bonded in that state.

The debt collector with active (assigned) collection authority sent the dunning notice.

Thus, any DV request would be directed at them.

However, if the debt is valid, then validation may be pro-forma, and sending a DV may not be the desirable next step.

If timely, a DV would impose a cease collection bar on the debt collector, thus preventing any negotiations on settlement or PFD until they have first decided to send validation.

As for credit reporting, apparently only LVNV has reported.

However, your dunning notice from Credit Control establishes that they (Credit Control) now has authorized, active collection authority.

Under CRA guidelines, LVNV should delete their reporting, even though they now own the debt, as they are no longer the active debt collector.

Credit Control can report at any time, so I would accept the settlement offer from Credit Control, with the added stipulation that they agree not to report their collection to any CRA.