Quick Answer: A Florida lawsuit (Browne v. LVNV Funding LLC) alleges that subprime credit cards marketed by Vervent Inc. charged interest rates of 34.99%-35.99% APR—rates that are criminal under Florida usury law—making the debts potentially void and unenforceable. If you hold a subprime card with rates above your state’s legal cap, you may have more rights than you think.
A Tampa, Florida man is suing LVNV Funding, four banks, and a card servicing company, alleging they ran a coordinated scheme to issue subprime credit cards at interest rates that Florida law considers criminal—and then sold the resulting debts to a collector who tried to make him pay anyway.
This case is one of the most detailed looks I’ve seen at how the subprime credit card machine actually works behind the curtain. It names names. It traces money. And it raises a question that could affect millions of consumers: Can a company use a bank’s charter to dodge your state’s interest rate protections?
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The math either works or it doesn’t. And when a credit card charges you $75 in fees on a $300 limit before you buy a single thing, the math was never designed to work for you.— Steve Rhode
What the Lawsuit Alleges
According to the complaint filed on February 4, 2026 (Case 8:26-cv-00333-JLB-SPF, Middle District of Florida), plaintiff Jason Browne of Tampa obtained four subprime credit cards from brands operated by Vervent Inc.:
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Each card also required a $95 “program fee” before the account even opened. Once the $75 annual fee posted immediately, the actual usable credit dropped from $300 to $225—assuming you paid the $95 upfront program fee just for the privilege of access.
The Real Math on These Cards: You pay $95 before the card opens. You get a $300 limit. A $75 annual fee posts immediately. You now have $225 of available credit—after already spending $170 in fees. And every dollar you carry accrues interest at nearly 35% APR. This is the financial equivalent of digging a hole before you start climbing.
How the “Rent-a-Bank” Scheme Allegedly Works
This is where the complaint gets genuinely fascinating.
According to the lawsuit, these cards were “ostensibly” issued by small banks—The Bank of Missouri (TBOM), MRV Banks, and Synovus Bank—but the complaint alleges that Vervent Inc. did virtually everything:
- Marketing and advertising the cards
- Screening and approving applicants
- Setting the terms, rates, and fees
- Servicing the accounts and billing cardholders
- Handling collections when payments were missed
- Selling the charged-off debts to buyers like LVNV Funding
So what did the banks do? According to the complaint, they lent their federal bank charter. That’s the whole alleged arrangement.
What Is “Rent-a-Bank”? A rent-a-bank arrangement is when a non-bank company partners with a federally chartered bank to issue loans or credit. The bank’s charter can provide exemption from state interest rate caps under federal preemption rules. Consumer advocates argue this lets non-bank lenders evade state usury laws while the bank does little more than rubber-stamp the arrangement. The lawsuit alleges that is exactly what happened here.
The complaint frames it plainly: the banks’ names appear on the cards to claim federal exemption from state interest rate caps. But the banks allegedly have no meaningful role in the lending. Vervent is the de facto lender, according to the complaint, and Vervent is not a bank.
Why Florida Law Makes This a Criminal Issue
Florida Statute § 687.071(2) makes charging interest rates between 25% and 45% a second-degree misdemeanor. That is not a civil matter—it is a criminal offense under Florida law.
But here is the part that directly affects consumers: § 687.071(7) states that any extension of credit at a criminally usurious rate is void and unenforceable.
Void Means Void: According to the complaint, all four cards carried APRs exceeding 25%—the ceiling under Florida law. If the court agrees that Florida usury law applies (and that the rent-a-bank structure does not provide valid federal preemption), these debts could be declared void ab initio—meaning they were never legally enforceable from day one.
How LVNV Funding Fits In
According to the complaint, after Browne’s accounts were charged off, LVNV Funding LLC purchased them. LVNV then allegedly:
- Reported the debts to credit bureaus as legitimate, enforceable obligations
- Sent collection letters demanding payment
- Communicated that the debts were valid when they were allegedly void under Florida law
The complaint alleges multiple violations of the Fair Debt Collection Practices Act (FDCPA), including:
- §1692e — Using false, deceptive, or misleading representations
- §1692e(2)(a) — Misrepresenting the character, amount, or legal status of a debt
- §1692e(8) — Communicating credit information known to be false
- §1692e(10) — Using deceptive means to collect a debt
Browne also brings claims under the Florida CRCPA (Civil Remedies for Criminal Practices Act) against all defendants and the Florida FCCPA (Consumer Collection Practices Act) against LVNV and Vervent specifically.
The Bigger Picture: Why This Matters Beyond One Lawsuit
Here is why I think every consumer with a subprime credit card should be paying attention to this case.
The Browne complaint does not describe some shadowy backroom operation. It describes a business model. According to the complaint, Vervent markets multiple card brands—Total Visa, Revvi, First Digital Mastercard, First Access—all allegedly running through the same rent-a-bank playbook with the same fee structure and the same sky-high APRs.
And in February 2026, Vervent announced an $80 million funding partnership to expand these very programs. This is not a company winding down. According to reports, they are scaling up.
The Assumption: “If a real bank issued my credit card, the interest rate must be legal.”
The Reality: According to this lawsuit and legal scholars at Duke Law, the bank may be a bank in name only. If the non-bank company controls every aspect of the lending relationship, courts may look through the arrangement and apply state law—including usury caps that could make the debt void and unenforceable.
What This Means If You Have a Subprime Card
I am not saying your subprime card is illegal. I am saying this lawsuit raises questions worth investigating. Here is what you should look at:
- Check your APR. Pull out your cardholder agreement and look at the interest rate.
- Check your state’s usury laws. Many states cap interest rates on consumer loans. Florida’s cap is 25% for loans—higher rates are criminal.
- Look at who actually services your card. Is the bank on the card the same entity handling your billing, customer service, and collections? Or is it a different company?
- Look at the fees. A $95 program fee plus a $75 annual fee on a $300 limit card means you are paying $170 in fees on a $300 credit line—before interest.
- Check if your debt was sold to a collector. If a debt collector is coming after you for a debt from one of these cards, this lawsuit suggests the debt may not be enforceable.
Got a Suspicious Card Agreement? Use the Contract Decoder to upload your cardholder agreement and get a plain-English breakdown of what you actually signed. If fees and rates look predatory, the Contract Decoder will flag it.
The Debt Collector Angle
If a debt collector contacts you about a debt from any card with potentially usurious interest rates, you have rights.
Under the FDCPA, a collector cannot misrepresent the legal status of a debt. If the underlying credit agreement violates your state’s usury law, the debt may be void—and a collector’s attempt to collect it may itself be illegal.
Know Your Rights: Use the Debt Collector Rights Lookup tool to find the specific protections available in your state. Federal law sets a floor, but many states give you additional protections that collectors hope you do not know about.
Your Rights When a Collector Calls
- Demand written validation of the debt within 30 days
- Dispute the debt in writing—the collector must stop until verified
- Request the original credit agreement and chain of ownership
- Consult with a consumer rights attorney (many work on contingency)
- File a complaint with the CFPB and your state attorney general
What Collectors Cannot Legally Do
- Misrepresent a void debt as valid and enforceable
- Report known-false information to credit bureaus
- Threaten legal action on a debt that may be unenforceable
- Collect fees or interest that exceed what was legally permitted
- Refuse to provide debt validation when requested
Should You Stop Paying?
I always tell people: do not make financial decisions based on a lawsuit that hasn’t been decided yet. The Browne complaint raises serious legal questions, but it is a complaint—the allegations have not been proven in court. The defendants will have their opportunity to respond, and they may argue that federal preemption protects the interest rates charged.
That said, if you are struggling with debt from a high-APR subprime card:
- Do not panic. Debt causes fear and fear causes bad decisions.
- Understand your options. You always have more than one path.
- Get specific advice for your situation. What is legal in Florida may be different in your state. A consumer rights attorney can tell you where you stand.
- Don’t let shame keep you paying a debt that may not be enforceable. Creditors are businesses making calculated risks. You should be equally strategic.
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Frequently Asked Questions
What is a rent-a-bank scheme?
A rent-a-bank arrangement is when a non-bank lender partners with a small federally chartered bank to issue credit products. The bank’s federal charter may exempt the loans from state interest rate caps under the doctrine of federal preemption. Consumer advocates and legal scholars argue that when the bank plays no meaningful role in the lending, the arrangement is a sham designed to evade state consumer protection laws.
Are interest rates above 25% illegal in Florida?
Under Florida Statute § 687.071, charging interest rates between 25% and 45% on consumer loans is a second-degree misdemeanor. Rates above 45% are a third-degree felony. Furthermore, § 687.071(7) declares any extension of credit at criminally usurious rates to be void and unenforceable. However, federally chartered banks may be exempt from state usury caps—which is the central dispute in this lawsuit.
If my debt is void under state law, do I still have to pay it?
If a court determines that the underlying credit agreement violates your state’s usury laws and is void, you generally have no legal obligation to pay it. However, this is a legal determination that requires professional advice specific to your state and situation. Do not stop making payments based solely on a lawsuit filed by someone else.
Does this affect all subprime credit cards?
No. This lawsuit specifically involves cards marketed by Vervent Inc. brands (Total Visa, Revvi Card, First Digital Mastercard, First Access Card) and their associated issuing banks. However, the rent-a-bank business model is used by other subprime lenders, so the legal principles at issue could have broader implications depending on how the court rules.
What should I do if LVNV Funding is collecting a debt from me?
Request written debt validation within 30 days of first contact. Review the original credit agreement for the interest rate and fees. Check your state’s usury laws. Consider consulting a consumer rights attorney—many handle FDCPA cases on contingency (no upfront cost). You can also use our Debt Collector Rights Lookup to understand your specific state protections.
Key Takeaways
- A Florida lawsuit alleges that subprime credit cards marketed by Vervent Inc. brands charged criminally usurious interest rates (34.99%-35.99% APR) through a rent-a-bank arrangement with small federally chartered banks.
- Under Florida law, interest rates above 25% may be criminal, and the resulting debts may be void and unenforceable—but federal preemption is the key legal question.
- LVNV Funding is accused of buying these allegedly void debts and collecting on them as if they were legitimate, in potential violation of the FDCPA.
- If you have a high-APR subprime card, check your state’s usury laws and the actual role your “issuing bank” plays. The bank name on the card may not tell the full story.
- This case is ongoing. These are allegations, not proven facts. But the questions it raises are worth understanding—especially if you are being collected on for subprime card debt.
This post discusses allegations in an active lawsuit. The defendants have not yet responded, and no findings of fact have been made by the court. Nothing in this post constitutes legal advice. If you believe your rights have been violated, consult a consumer rights attorney in your state.
(Source: Browne v. LVNV Funding LLC, Case 8:26-cv-00333-JLB-SPF, Complaint filed February 4, 2026 | Full docket on CourtListener)
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