• DYE CULIK PC | Consumer Protection Division

Motion for Summary Judgment Filed Against LVNV Funding for Alleged Illegal Debt Collection

Updated: Jan 22


LVNV Funding

Culik Law PC (now DYE CULIK PC) filed a motion for summary judgment against LVNV Funding for alleged illegal debt collection. The motion asks a judge of the Business Litigation Session of the Massachusetts Superior Court to declare that LVLV Funding violated the Consumer Protection Act by failing to obtain a debt-collection license before collecting from Massachusetts consumers.


A motion for class certification was also filed, asking the court to rule that all Massachusetts consumers within the past few years who have been collected from or sued by LVNV Funding are entitled to damages.


Under Massachusetts law, debt collectors must obtain a license to collect debts from the Division of Banks pursuant to M.G.L. ch. 93, § 24A. Failure to do so is an automatic violation of the Consumer Protection Act, called Chapter 93A.


Some debt collectors – for instance, LVNV Funding, Midland Funding, Jefferson Capital, CACH, LLC, and Cavalry SPV I – claim that they are not required to get a license because they are only “passive” debt buyers who do not directly collect debts themselves, but instead used third-party debt collectors and attorneys to do so.


Culik Law, in a series of cases filed with co-counsel against debt buyers, has argued the opposite – and has obtained successful court opinions saying that debt collectors may be required to be licensed. Filing collection lawsuits, making calls, and sending letters, all are a direct form of debt collection, no matter whether or not it is third parties who do so.


The court has now taken the motion under advisement and is expected to render a decision in the near future.


If you are experiencing issues with a debt collector, contact us to see if we may be able to help. DYE CULIK PC (previously Culik Law PC) is a consumer financial protection law firm. We advocate aggressively for consumers against debt collectors.