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NFCU charged off account sold to LVNV and listed as collections

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fallguy
New Visitor

NFCU charged off account sold to LVNV and listed as collections

Good evening!

There was an old NFCU account on my report from 2014 to 2018 that apparently got sold to LVNV.  I have not been contacted by LVNV.  The problem is I just started applying for mortgages, and this new account showed up as a collection account, not charged off like the NFCU entry was.  The mortgage lender is having a problem because the old charge-off would have been fine, but a new collections account is not...

I'm trying to figure out the best way to get it off quickly (besides pay for delete).  The mortgage lender said to get in touch with NFCU and have them send me something saying it was charged off, then send it to LVNV.  But, if the debt is legit, NFCU is free to sell it to who they want, even though it would be past the statute of limitations in AZ for the type of debt it says it is.

Here's a few things I've thought of and noticed...

1. LVNV, even though they list the Open Date as 10/18/2022, still hasn't contacted me.  I know they have 5 days to send a letter after they contact me, but is there any laws on how soon they have to contact me?  They've already shown 2 "C" payments in the history.

2. Since they purchased the account from NFCU, what information MUST match?  The Open Date?  The comment references a collections account from NFCU, but the old NFCU account was marked as a charge off (I have old credit reports showing that).

3. I've seen that LVNV likes to sue.  I'm not concerned with that since I am past the AZ statute of limitations.  But is there any way to make them prove not only that the debt is valid, but that they own the debt outside of a lawsuit?

Any advice would be appreciated.

Thanks!

Message 1 of 4
3 REPLIES 3
Cowboys4Life
Frequent Contributor

Re: NFCU charged off account sold to LVNV and listed as collections


@fallguy wrote:

But, if the debt is legit, NFCU is free to sell it to who they want, even though it would be past the statute of limitations in AZ for the type of debt it says it is.

Here's a few things I've thought of and noticed...

1. LVNV, even though they list the Open Date as 10/18/2022, still hasn't contacted me.  I know they have 5 days to send a letter after they contact me, but is there any laws on how soon they have to contact me?  They've already shown 2 "C" payments in the history.

2. Since they purchased the account from NFCU, what information MUST match?  The Open Date?  The comment references a collections account from NFCU, but the old NFCU account was marked as a charge off (I have old credit reports showing that).

3. I've seen that LVNV likes to sue.  I'm not concerned with that since I am past the AZ statute of limitations.  But is there any way to make them prove not only that the debt is valid, but that they own the debt outside of a lawsuit?

Any advice would be appreciated.

Thanks!


The debt may be past the SOL for suing you in AZ but depending on when you first defaulted it may not be past the DOFD for credit reporting.  When is the DOFD?

 

1.  They don't have to contact you at all.  The Federal Courts are deeply divided as to whether credit reporting to the bureaus is actually collections efforts.  Until it gets challenged and SCOTUS takes the case and rules you are not entitled to contact from the creditor merely because they reported your debt.

2.  Charge off is nothing more than an accounting term.  It means NFCU moved your account from a performing asset to a liability.  LVNV would correct in reporting the account as a collection as it is exactly that to them.  It would be considered an asset to them as long as they consider the account active.  They do not report the status as the account was with NFCU.  The "open date" is the date LVNV purchased the account.  It does not change the DOFD or when a trade line can no longer be reported under the FCRA.

3.  They do not have to prove anything unless compelled to do so in arbitration or court.  Even if you send a DV the only information they are required to provide under the FDCPA is the name of the OC (which you know) and the amount you owe.  That is it.  Since they have not contacted you by phone or mail they can ignore any DV you send as a result of it being on your CR or the mortgage broker telling you about it and it would not be an FDCPA violation.

 

The bottom line is how important is the mortgage because PFD may be the fastest way to make it go away if the DOFD is causing it to be able to stay on your report(s).

Message 2 of 4
FireMedic1
Community Leader
Mega Contributor

Re: NFCU charged off account sold to LVNV and listed as collections

LVNV will delete once settled or paid. Takes up to 2 updates to do so. Since it was sold to LVNV. NFCU should show a zero balance. Get it paid and its gone. Congrats on the home!


Message 3 of 4
bass_playr
Established Contributor

Re: NFCU charged off account sold to LVNV and listed as collections

This one might take a little patience and legwork on your end.  LVNV is a debt buyer.  They usually farm it out to Resurgent Capital or one of the Sherman Group's other debt collectors.  So you might get a little runaround on who exactly is collecting the debt.  Either way, if you pay it they will remove it from your credit.  

Message 4 of 4
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