Understanding LVNV Funding LLC
LVNV Funding LLC, is a debt buyer. What does that mean, exactly? It means they purchase old debts from creditors, usually for pennies on the dollar. Then, they try to collect the full amount from you.If you’re being contacted by LVNV about a debt, don’t panic. You have options. The first step is understanding who they are and how they operate.LVNV doesn‘t collect debts directly. Instead, they outsource collections to a company called Resurgent Capital Services. So if you’re getting calls or letters, they’ll likely be from Resurgent, not LVNV.It’s important to know that LVNV buys very old debts, often past the statute of limitations. This means they may not be able to sue you for the debt. However, they can still try to get you to pay voluntarily.Their main tactic is pressuring you to make a payment, any payment. Even $5. Why? Because making a payment restarts the clock on the statute of limitations. Suddenly, they CAN sue you. Don‘t fall for it.The bottom line: don’t agree to anything right away. Get all the facts first. Verify that the debt is really yours and that LVNV actually owns it now. You have rights – exercise them before making any decisions.
Your Rights When Dealing with LVNV
When LVNV comes calling, it’s crucial to know your rights. You have protections under federal law, specifically the Fair Debt Collection Practices Act (FDCPA).For starters, LVNV must send you a written debt validation notice within 5 days of first contacting you. This notice should include:
-- The amount owed
- The name of the original creditor
- A statement of your right to dispute the debt within 30 days
If you dispute the debt in writing within that 30 day window, LVNV must halt collections until they provide proof that you owe the debt. They can’t just say “yeah you owe it.” They need to show evidence.The FDCPA also limits how and when LVNV can contact you. They can‘t call before 8am or after 9pm. They can‘t harass you or use abusive language. They can’t lie or mislead you.If LVNV violates any of these rules, you can sue them. You could get damages of up to $1000, plus attorney fees. Don’t let them bully you.You also have the right to tell LVNV to stop contacting you altogether. Send a written request, and they must comply. They can only reach out to inform you of specific actions after that, like filing a lawsuit.Speaking of lawsuits – if LVNV sues you, DO NOT IGNORE IT. Show up to court. If you don’t, they win by default. Respond to the lawsuit, either yourself or through an attorney.The key is, don’t be intimidated. Assert your rights. Make LVNV work for it if they want to collect from you. Chances are, they’ll be willing to negotiate and settle for less. Stand your ground.
Should You Negotiate a Settlement with LVNV?
If you‘ve determined that the debt is legitimately yours, and LVNV has the right to collect, you may be wondering – should I try to settle?The answer is – it depends. But in many cases, negotiating a settlement with LVNV can be a smart move. Here’s why:First, remember that LVNV likely bought your debt for a fraction of the total amount. So even if you settle for 50% of what you owe, they‘re still making a profit. They may be very willing to accept a settlement.Second, settling a debt is better for your credit than not paying at all. It will still hurt your score, but not as badly as an unpaid collection. And once you settle, the debt is considered resolved. It‘s a step toward rebuilding your credit.Third, if you’re facing a lawsuit from LVNV, settling can be a way to avoid court. You definitely don’t want a judgment against you if you can help it. A settlement gets the lawsuit dismissed.However, there are some downsides to consider:
- Settled debts can still show up on your credit report for 7 years
- You may owe taxes on the forgiven amount
- If you settle for less than the full amount, LVNV may sell the remaining debt to another collector
Ultimately, it‘s a personal decision. Can you afford to pay the full debt? If not, a settlement may be your best option. It allows you to resolve the debt for less and move on with your life.If you do decide to settle, be strategic. Don’t agree to an amount you can’t afford. Get the agreement in writing before making any payments. And make sure the written agreement states that the debt will be reported as “paid in full” or “settled in full.”Negotiating a settlement with LVNV can be tricky. But it’s often possible to reach a deal that works for both sides. Just be informed, stay calm, and advocate for yourself. You got this.
How to Negotiate a Debt Settlement with LVNV
So you‘ve decided to try to settle your debt with LVNV. Great! But how do you actually go about it? Here‘s a step-by-step guide.
-Step 1: Determine what you can affordBefore you start negotiating, figure out how much you can realistically pay. Look at your income and expenses. See if you can free up any extra money by cutting costs elsewhere.Come up with a lump sum amount you could pay to settle the debt all at once. LVNV is more likely to accept a lump sum than a payment plan.As a general rule, start by offering 25-30% of the total debt. So if you owe $1000, offer $250-$300. Expect LVNV to counteroffer. Have a maximum amount in mind that you’re willing to pay.
**Step 2: Call LVNV (or Resurgent)**Once you have a number in mind, it’s time to make contact. Call the number on your most recent letter from LVNV or Resurgent.When you get a representative on the line, keep it simple. Say something like: “I’m calling to discuss account number XYZ. I‘d like to resolve this debt. I‘m prepared to offer a settlement of $X to settle the debt in full.”The rep will likely say they need to check with a supervisor. That’s fine. Stay firm on your offer amount. They may try to pressure you to pay more. Don‘t budge unless it’s within the maximum amount you determined in advance.
Step 3: Get the agreement in writingIf you reach a verbal agreement on a settlement amount, great! But your work isn’t done. You need to get that agreement in writing.Say to the rep: “I’m glad we could come to an agreement. Please send me a written document stating the terms of the settlement, and I’ll get you the payment as soon as I receive that.”Do NOT make any payments until you have a signed agreement in hand. The agreement should include:
- Your name and account number
- The agreed settlement amount
- A statement that the debt will be considered “settled in full” once payment is made
- A promise from LVNV/Resurgent to report the debt as settled to the credit bureaus
Once you have the written agreement, review it carefully. Make sure all the terms are what you discussed. If anything looks off, don‘t sign it. Reach back out to your contact at LVNV/Resurgent.