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.