These days, it is easy to get into debt. If you promised to pay—whether through credit cards, loans, or even a verbal agreement—you do legally owe the money.
With everything going on in the world, it might be tempting to ignore debt collection notices and phone calls. But ignoring them is risky. Debt collectors will often take legal debt collection action and try to get a judgment against you. This judgment cannot be ignored.
The Fair Debt Collection Practices Act (FDCPA) protects you from abusive debt collection practices. It makes sure debt collectors only try to collect legitimate debts. It also stops them from using misleading or unfair debt collection attempts.
If you get collection notices from LVNV Funding, you might want to ignore them. But once the phone calls start, you will wish you hadn’t.
LVNV Funding, LLC is a junk debt buyer. This means they buy old debts or receivables that have been charged off. After buying a debt, they often aggressively pursue the person who owes it. Their collection efforts can feel overwhelming.
If they cannot get the debt through phone calls, they may hire a local collection attorney. This attorney can file a lawsuit to recover the debt.
If you receive notice that LVNV Funding, LLC is suing you, you should speak with a debt lawsuit defense attorney. If you live in Texas, the attorneys at Warren and Migliaccio can help you avoid a default judgment.
Who is LVNV Funding LLC and why are they suing me?
If you are unfamiliar with the company’s name, you may be quite confused when you receive notice that you are being sued. Owned by Sherman Financial Group and managed by Resurgent Capital Services, LVNV Funding, LLC is a company that purchases debts that have been written off by the lender. These are most often , but could also include personal loans or installment loans. A few of the companies that LVNV purchases these debts from include..
It is very important to send any legal replies to the correct address listed on the summons. This ensures the legal process is legitimate and that you can properly defend yourself against the claims.
After LVNV Funding buys a debt, they aggressively pursue the person who owes it with phone calls. Their efforts are so intense that there are pending class action lawsuits against the company for harassment.
The Federal Trade Commission has issued rules to regulate debt collection practices. The Fair Debt Collection Practices Act (FDCPA) stops debt collectors from using false, deceptive, or misleading tactics. This law protects consumers from unfair collection efforts and opens the door for legal debt relief strategies.
Your Right to Dispute or Verify the Debt
Under the Fair Debt Collection Practices Act (FDCPA), you have the right to dispute the debt within 30 days of being contacted by a debt collector. If you are unsure whether you owe the amount they say, you can ask for verification of the debt.
By law, the debt collector must provide proof that the debt is valid. They also must show that they have the authority to collect it. The FDCPA requires debt collectors to send a validation notice within five days of their first contact. This notice includes important information about the debt.
Requesting verification helps you confirm that LVNV Funding, LLC really owns your debt. It also helps you check if the debt amount is correct. If they cannot provide the needed documents, this can strengthen your defense in state court. It may even lead to the lawsuit being dismissed.
Always keep copies of any letters you send to dispute the debt. Also, keep any responses you get from the collector. If the collector fails to provide proper verification, you may have more defenses under federal or Texas consumer protection laws.
What To Expect If You Are Contacted By Or Sued by LVNV Funding, LLC?
If LVNV Funding contacts you, the first call typically includes a debt settlement offer—often a discounted lump-sum payment if you act quickly.
If you don’t accept, they may escalate their efforts, sometimes crossing into harassment. Expect frequent calls, including to numbers of people listed as references. They also report debts to credit bureaus like TransUnion, Experian, and Equifax.
If LVNV Funding cannot reach you or you refuse to pay, their collection activity often escalates to filing a lawsuit, seeking a judgment to recover the debt. Debt buying collection agencies like LVNV file lawsuits in district court hoping to get a default judgment against you.
If you don’t respond or refuse to pay, they may sue you to recover the debt. LVNV Funding files thousands of lawsuits each year, often seeking more than twice the original balance. These lawsuits aim to secure default judgments when people don’t respond in time.
In court, debt buyers are often represented by attorneys or collectors who may lack complete documentation of your debt. This can work in your favor—if you respond. Many people feel overwhelmed or embarrassed and ignore the lawsuit, but doing so can lead to an automatic judgment against you.
If you’re considering a settlement, know your financial limits—understand your income, expenses, and debts before making an offer you can realistically afford.
If a judgment is entered and you choose to challenge it, you’d need to file an appeal—becoming the appellant. This process can be complex and requires legal guidance.
Bottom line: If LVNV Funding sues you, don’t ignore it. Responding promptly and hiring an experienced attorney can make a significant difference in your outcome.
Weaknesses of Debt Collection Lawsuits
When collection agencies like LVNV Funding file a debt collection lawsuit, they face some challenges. These weaknesses can work in your favor.
For example, in both state and federal court, the debt collector must prove they have the legal right to collect the debt and follow all proper procedures.
Here are some common weaknesses in their cases:
- You might not show up in court: Debt collectors often hope you will ignore the lawsuit. If you don’t appear, they can easily get a default judgment against you.
- Old debts: Some debts LVNV buys are very old. These old debts may be too old to enforce legally because of the statute of limitations.
- Unclear ownership: The real ownership of the debt is often unclear. The chain of custody—who actually owns the debt—can be confusing or incomplete.
- Affidavits signed without full knowledge: When debts are bought in large groups, the person signing affidavits often does not know the details of each debt. They may sign hundreds of affidavits without direct knowledge of the individual accounts.
Debt collectors must follow strict procedures to avoid liability for wrongful collection actions. This is especially important when there is mistaken identity, meaning they are trying to collect from the wrong individual.
What Not To Do
Nothing. Many of the lawsuits filed by LVNV Funding go uncontested. The debt holder, unsure of what to do, often does nothing. If you are being sued by the company and you do not respond or show up in court, LVNV Funding will get the full judgment amount they asked for.
As the defendant in a debt collection lawsuit, it is very important to know your rights and responsibilities when you get a summons and complaint. If you don’t respond properly, you could face serious legal consequences, including a default judgment.
A judgment can lead to:
- Garnished wages (money taken from your paycheck)
- Frozen or garnished bank accounts
- A lien placed on your property
The judgment will also likely appear on your credit report, making it public knowledge. It is critical to understand that the court’s ruling in these matters is legally binding and enforceable, which is why timely action is essential.
What To Do If You Are Sued by LVNV Funding, LLC
If LVNV Funding, LLC has filed a lawsuit against you, follow these important steps:
- File an Answer to the lawsuit right away. This is your first and most important step in responding to the pleadings.
- Decide if you should hire an attorney to help with your case.
Going to court shows the judge you take the matter seriously. But if you seem unprepared or confused, the judge will likely side with LVNV Funding and award them the full amount they want.
You need to understand the legal proceedings to protect your rights in court. Every debt case is different, and knowing which laws apply takes experience. Some defenses are a matter of law, meaning the court will decide them without needing a full trial.
LVNV Funding makes a lot of money from lawsuits people don’t contest. Having a debt lawsuit attorney on your side greatly increases your chances of:
- Getting the case dismissed
- Settling the debt before going to trial court
Law Firms that sue and file lawsuits for LVNV:
Possible Consequences of a Lawsuit with LVNV Funding
When facing an LVNV Funding LLC lawsuit, several outcomes are possible:
- Victory in Court: If you successfully defend against LVNV’s claim, the court may dismiss the lawsuit. This means no judgment will be entered against you.
- Defeat in Court: If LVNV wins, a judgment will be entered against you. You will be legally required to pay the debt, plus any extra fees or interest.
- Settlement Agreement: Sometimes, LVNV may offer a settlement agreement. This means you agree to pay part of the debt, and they drop the lawsuit. This can be a good option if you cannot pay the full amount but want to avoid a judgment.
- Default Judgment: If you fail to respond to the lawsuit or miss a court hearing, LVNV can win by default. This results in a judgment against you. They can enforce this judgment through actions like bank garnishment.
Ignoring a lawsuit about an outstanding debt can lead to serious problems. These include default judgments, wage garnishment, and other financial troubles.
The outcome of the lawsuit depends on the evidence both sides present. As a consumer, you have the right to protect your interests at every stage. You can legally question the debt’s validity and seek professional legal advice.
Frequently Asked Questions About LVNV Funding LLC Lawsuits
What should I do if I get a lawsuit from LVNV Funding LLC?
Respond to the lawsuit right away by filing a formal Answer with the court before the deadline stated on your summons, usually 14-30 days depending on your state. Never ignore the lawsuit, that will result in a default judgment against you. After receiving a summons, your reply is an opportunity to raise an affirmative defense against the lawsuit, which could significantly impact the outcome of the case.
1. Review all documents carefully, note deadlines and specific claims
2. In your Answer, respond to each allegation by admitting, denying or stating insufficient knowledge
3. Ensure that you send your legal replies to the correct address listed on the summons to avoid any issues with the legitimacy of the legal process
4. Consider including affirmative defenses such as statute of limitations or lack of standing
5. Gather documentation related to the debt, including payment records and correspondence
6. Consider consulting with a debt defense attorney who specializes in collection lawsuits
7. Continue to respond to all court requirements even if you’re negotiating a settlement
What are my legal defenses against an LVNV Funding lawsuit?
Several strong legal defenses can help you fight an LVNV Funding lawsuit, including statute of limitations, lack of standing to sue, insufficient documentation, and FDCPA violations. There is a strict liability cause of action for attempts to collect a debt that misrepresents or falsely presents the character or amount of the debt owed under the FDCPA, which can be a powerful defense in court.
1. Statute of limitations: In many states creditors have 3-6 years to file a lawsuit for credit card debt
2. Lack of standing: LVNV must prove they own your debt with proper documentation
3. Insufficient documentation: They often lack complete records of the original debt amount, interest rates and payment history
4. Mistaken identity: The debt may not be yours
5. Identity theft: If you are a victim of identity theft, you can use it as a defense to show the debt is not yours
6. FDCPA violations: If LVNV harassed, misrepresented or deceived you
Improper service: If you weren’t properly served with the lawsuit according to state law
Can I settle with LVNV Funding after being sued?
Yes, you can settle with LVNV Funding even after being sued, often for much less than the amount claimed. Since they buy debts for pennies on the dollar they often accept settlements for 30-50% of the original amount. Making a settlement offer to LVNV Funding is more likely to be accepted if you pay in one lump sum rather than setting up a payment plan.
1. Continue to respond to the lawsuit while negotiating to avoid a default judgment
2. Get any settlement agreement in writing before making payments
3. Ask them to report the debt as “paid in full” to credit bureaus
4. Request they file a satisfaction of judgment with the court
5. Consider having a debt defense attorney negotiate on your behalf for better terms
6. Make sure the settlement includes dismissal of the lawsuit with prejudice
What happens if I ignore an LVNV Funding lawsuit?
Ignoring an LVNV Funding lawsuit will almost certainly result in a default judgment against you, giving them powerful legal tools to collect the debt. This can lead to wage garnishment, bank account freezes, property liens and significant damage to your credit report.
1. A default judgment means you automatically lose the case without presenting your side
2. Judgments usually include the full debt amount plus interest, court costs and attorney fees
3. LVNV can enforce judgments through wage garnishment, taking up to 25% of your disposable income
4. They can freeze your bank accounts or place liens against your property
5. Judgments appear on your credit report and can stay there for 7-10 years
6. Judgments are much harder to fight than the original lawsuit, so never ignore legal notices
How does the statute of limitations affect my LVNV Funding debt?
In Texas, the statute of limitations for most consumer debts, like credit cards, is 4 years from your last payment or when you last acknowledged the debt. After this 4-year period, the debt becomes time-barred, which means a debt collection company like LVNV Funding cannot sue you to collect it.
However, just because you haven’t heard from the original creditor or debt collector doesn’t mean the debt is outside this time frame. Also, if you make a partial payment or even promise to pay, this can reset the clock on the statute of limitations.
If you get a court summons for a debt that is old, you must dispute it by using the statute of limitations as a defense in your Answer. The court will not dismiss the case automatically if you don’t raise this defense.
To protect yourself:
1. Check your account history to confirm the dates of your last payment or contact about the debt.
2. If you are unsure, talk to a Texas debt defense lawyer who can help you assess whether the time limit has passed.
3. For more information on how to respond to a debt lawsuit, see File an Answer.
Should I get an attorney for my LVNV Funding lawsuit?
Working with a debt defense attorney boosts your chances of winning an LVNV Funding lawsuit through their knowledge of debt collection laws and court procedures. Many offer free consultations and payment plans.
1. Attorneys know the legal defenses and can spot FDCPA violations you might not see
2. They can get better settlements than you could on your own
3. They can request the documentation LVNV must provide to prove their case
4. An attorney may cost less than the judgment you’d get by defending yourself poorly
5. Some attorneys take cases on contingency if they find FDCPA violations that could result in damages
Where can I get help for an LVNV Funding lawsuit (free consultations & payment plans)?
Many Texas consumer law firms offer free consultations for debt collection lawsuits. During this meeting, an attorney will review your case and tell you if you have defenses. These defenses might include:
1. Time-barred debt
2. Improper service
3. Lack of documentation
4. These defenses could lead to the dismissal of the lawsuit.
Some lawyers also offer payment plans or flat fees to make legal help more affordable. For example, Warren & Migliaccio, LLP focuses on debt defense in Texas and provides free consultations.
Don’t wait to get legal help. You usually have 14 days (sometimes up to 20, depending on the court) to file an Answer to the lawsuit. If you miss this deadline, LVNV Funding can get a default judgment against you.
By talking to a lawyer early, you will learn your options. These may include:
1. Fighting the lawsuit
2. Negotiating a settlement
3. Filing a motion to dismiss
Getting legal advice early can help you avoid serious legal consequences.
Benefits of Retaining a Debt Defense Attorney
When you retain an attorney to help you with the lawsuit against you, the attorney can:
- Advise you of your rights.
- Help you with the preparation of your response.
- Request a dismissal of the case against you.
- Investigate your case.
- Take action if the debt collection agency is abusive towards you.
- Assert any defenses, such as the statute of limitations having expired on the debt.
- Negotiate a settlement if appropriate.
- Advise you of all of your options.
Retaining a Debt Defense Attorney Can Help You
Hiring a lawyer who focuses on debt defense offers strategic advantages:
- Knowledge of the law: A specialized attorney understands Texas and federal debt collection laws and can pinpoint weaknesses in LVNV Funding’s claims.
- Stronger Negotiations: Collectors often agree to more favorable settlements when they see you have legal representation.
- Procedural Guidance: An attorney ensures you meet all court deadlines and comply with local rules—avoiding costly mistakes like missing an Answer deadline.
- FDCPA Enforcement: If LVNV Funding violates consumer rights or can’t verify the debt, a lawyer helps assert those defenses.
Although many debtors handle lawsuits on their own, retaining a debt defense attorney can provide benefits that significantly boost your chances of a successful outcome. The right legal counsel often pays for itself compared to the risk of a default judgment or a higher settlement.
Don’t let companies like LVNV Funding pressure you into paying without legal advice. At Warren & Migliaccio, LLP, our Texas debt defense attorneys can help you fight back. Call (888) 584-9614 or contact us online to schedule your free consultation. You don’t owe just because they say so.
