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LVNV Funding and Resurgent Capital Services Lose Ability to Collect from Maryland Residents

According to a tip a reader sent in after noticing a mention of this issue from CollectionsCreditRisk.com the following State of Maryland press release was found.

Maryland Commissioner of Financial Regulation Suspends Collection Agency Licenses of LVNV Funding, LLC and Resurgent Capital Services

BALTIMORE, MD (October 28, 2011) – The Maryland Department of Labor’s (DLLR) Office of Financial Regulation (FinReg) announced today that summary orders to cease and desist and summary suspensions of collection agency licenses were issued this week in a case against LVNV Funding LLC and Resurgent Capital Services L.P.

“The Department of Labor protects Marylanders against fraud and from the risk posed by unlicensed creditors, lenders and collectors,” said Maryland Labor Secretary Alexander M. Sanchez. “I applaud the Office of Financial Regulation for their proactive work to defend Maryland’s consumers.”

The State Collection Agency Licensing Board (Agency) in FinReg has found grounds to allege that LVNV Funding LCC and Resurgent Capital Services L.P. engaged in acts or practices constituting violation of the Maryland Collection Agency Licensing Act (MCALA), the Maryland Consumer Debt Collection Act (MCDCA) and the Fair Debt Collection Practices Act (FDCPA). The Agency determined that public welfare requires that the Maryland collection agency licenses of LVNV Funding LLC and Resurgent Capital Services L.P. be suspended, effective immediately, and that it is in the public interest that both companies immediately cease and desist from the collection of consumer claims from Maryland residents.

“Consumer debt purchasers are increasingly using the court system to pursue consumer claims in default,” said Deputy Commissioner Anne Balcer Norton. “It is the objective of the Office of the Commissioner of Financial Regulation to ensure that businesses involved in this type of debt adhere to licensing requirements and the Maryland Rules of Civil Procedures, as well as to the federal and State debt collection laws.”

Based on the Agency’s investigation, LVNV Funding LLC and Resurgent Capital Services L.P. over the last six years have attempted to collect on consumer claims in default by filing at least 27,522 actions in State courts throughout Maryland, the majority of which were filed prior to the respondents obtaining proper licensing. Additional violations include, but are not limited to, the following:

  • Knowingly filing false, deceptive or deficient affidavits with regard to the affiant’s personal knowledge of the consumer’s claim;
  • Intentionally misrepresenting the amount of the consumer claims and collecting impermissible compound interest;
  • Knowingly collecting unauthorized attorney’s fees and prejudgment interest at unauthorized rates; and
  • Filing cases which the relevant assignment documents evidence that LVNV did not have valid title of the consumer claims at issue.

LVNV Funding and Resurgent Capital Services Lose Ability to Collect from Maryland Residents
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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • SusanJax

    I had success beating this company by filing a complaint with the Better Business Bureau in Greenville South Carolina where they were located. I had to really push and go back and forth a bit but the responses were quick and I ended up with a letter from Resurgent that the account was not mine.

    • santacruz

      HI Susan – I’m having the same issue with Resurgent, do you mind sharing how you went about filing and getting the documentation to support the dispute? 

  • Nevada resident

    I found the practices of Resurgent Capital / lvnv funding to be highly suspect.  Resurgent tried to get me to wire them a large sum of money and when they thought I might, immediately had the account information ” changed ” on my personal credit report, showing the  “account” had been sold.  That way if they got my money, they could claim they no longer  “owned” the account.  When they realized I hadn’t been duped into sending them money, the account data mysteriously was quickly changed agaain on my credit report within 4 gays, stating that lvnv funding again  “owned” the  account. I believe their underhanded practices should be closed in Nevada and several additional states.

  • Swedishrosesinthesunset

    Wow   Interesting   findings   here  today  ! 
    I   am   living  in  Michigan   and   Having   problems  with  these  people   too
    I   had  a  judgement   Thur  the  court   and   now   the   Attorney  that  was   on the   case  is  not  cashing    my  agreed  payments    thru  a  judgment  thru  the  court   that  i  had  to   go  to  court on   since  April   2012    my  regular  payment’s   have   been   made    all  the   way  back  to   11- 2006     that  is   alot   of   payments   i  have  made  to   the  law  firm   that   has  been  handling  the  case   over   the  years   and   now   when  i  called  to   find  out   way  the check  has  not  been  cashed   they   told  me   the  company   recalled   it   when  the  judgement   was  agreed  to  in  court  with  payment   by  the  15th  of  the  month   which  i  have  been  doing  all  along    now  all  the  sudden   they  will  be  sending  payment   back  to   me    when  i  am  paying  it  every month     
    i   feel  this  is  un just  to  me    when   i   am  making  these  payments   as  told  to me  by    the  court   here  in    Michigan  also   the  law  firm   doesn’t   want  to  write  or  deal   with  the  court  on this  matter  here   so   i  feel  the  judgement   was   wrongfully   brought   against  me   to  make   me   look   bad   and  further   more  I   have   never   seen  the   documents  that   i   owe   these   people   money   because  the  debt  was  payed  off  long  ago   and   they  wont  prof nothing  to  me   here!   which  is  not  fair   to me   and  my rights   in  Michigan.   According  to  the  court   they  tell  me  my  payments  must  go  to  the  Law  firm  only  to  the agreement   we  made  in  court   here
    not   to  anyone   else   now  today  i  get  a  letter   stating  from   Resurgent   capital    for  the  amount   of   over  9,000.00    which  is   very  wrong   here    and   they  have   many  previous   people   on   the  creditor   list    with  it    which  doesn’t   make  any  since  at  all     and   if   a  judgement   is  being  meet  to  the  attorney  then  they  have  no  case  against  me      they   cant  collect   twice   on  the  same   bill   allegedly  they  say  i   owe   .   this  is  what  is  happening  in  Michigan  to   me   and  i   dont   like  it   either  !  when  you  call   the   one  number    you  cant  even  talk to  anyone  and  they  are  trying  to   get  information  from you  to  build  a   case  against   you    !    so   sad  this  is   what  people  have  to  do  to   low  income   people   here  !   Kat 
                        

  • Rose Judy

    I have been having problems with LVNV. I keep disputing the VOD with the 3 Credit Bureaus.
    LVNV opened a new account in my name in August. In Nov they reported a major deliquency.  It has been a month since I first reported LVNV, Security Capital Services and Midland Credit. (In 2009 I sent a letter to Midland, it remained on the report but as disputed, now it resurfaced.   It appears that once I initiated a dispute they came out of the woodwork.  Now I received a notice from Resurgent Capital regarding my dispute with LVNV. Asking me what I was disputing and that they were the parent company. Isn’t that what the 3 Bureaus do? I haven’t a clue what to do next. Should I contact the 3 Credit Bureaus.
    Also another culprit is  Portfolio Recovery and I don’t know how they do it but they validate with the bureaus. Although one PR account was deleted.  

    About 2 weeks ago, I received numerous calls from Asset Management for someone else. They finally stopped calling.
    I also received a call from someone, I answered the phone thinking it was a local call, and they were looking for someone, whom I happened to know. they said she gave me this number as her home number, I told her she doesn’t live here but not sure where she is haven’t spoken to her in years. 
    Later, it was still bothering me and I called the number back only to find out it was another sleezeball agency looking to collect a debt from her.

    The one bureau that seems to be the worst is Equifax.  .  The first agent to help me was offshore and had no idea what I was talking about. The second agent could not tell me what the SOL was in NJ, and what date they will drop off. She referred me to the fraud division,  I asked if a fraud alert or security freeze would help and the woman said, I suggest you pay your bills on time. I todl her she was out of line and not what I expected to hear from when inquiring about a fraud alert.

    What they are trying to collect is old debt that was charge off and reaching the SOL.

    I cannot understand why Equifax does nothing to protect the consumer, while TransUnion and Experian go out of their way to help.

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