• DYE CULIK PC | Consumer Protection Division

LVNV Funding Suing Consumers in Massachusetts



The debt collector LVNV Funding, LLC is one of the major companies of its’ type operating in Massachusetts. It is what is called a “debt buyer.” Debt buyers are companies that do not lend money, but which instead purchased defaulted consumer accounts, such as credit cards, in order to collect on them.

For example, a credit card company may decide it does not want to collect certain accounts itself. Instead, it can sell the account for less than the full balance to LVNV Funding, or to other debt buyers. In this way, the credit card company gets immediate payment for at least some of the amounts due, and LVNV Funding can attempt to collect on the full balances, even though it has only paid a fraction of the amounts. Then it can file lawsuits in court against consumers.

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“There are, however, many defenses to these lawsuits. Often, the transfer of the account, called the assignment, is not available, and thus there is no record that the account was actually sold.”

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There are, however, many defenses to these lawsuits. Often, the transfer of the account, called the assignment, is not available, and thus there is no record that the account was actually sold. Under the rules of evidence, there must be a record of the assignment in order for a debt buyer to win its case. In fact, one state has even suspended the collection license of LVNV Funding for filing perjured affidavits and collecting unauthorized attorney’s fees and interest.

Also, although consumers may be willing and able to go to trial, debt buyers usually try to obtain judgments by default, without having to go in front of a judge or jury.

If there have been violations of the Fair Debt Collection Practices Act or similar state laws such as Massachusetts Chapter 93A, a consumer may also have a right to take legal action against the debt buyer.

 Probably the most important thing a consumer can do if he or she has been sued is to obtain legal advice. There are short deadlines to respond to a debt-collection lawsuit. In Massachusetts state court, for example, the deadline is usually 20 days. If a consumer does not respond, he or she may be deemed to be in default, and automatically loses without the benefit of a hearing.

If you feel your rights have been violated by LVNV or another debt collector, contact us for a free consultation.

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