Terrell v. LVNV Funding, LLC, Case No. 9:26-cv-80918

Primary Source: View Original Complaint (PDF)

Facts as Alleged in the Complaint

The following is taken verbatim from the complaint filed in federal court. These are allegations; no finding of fact has been made.

The Parties

3. Plaintiff Sean Terrell is a natural person residing at [redacted], Haverhill, Florida 33415, and is a “consumer” as defined by the Fair Credit Reporting Act, 15 U.S.C. § 1681a(c).
4. Defendant LVNV Funding, LLC is a limited liability company engaged in debt purchasing and collection, and is a “furnisher of information” as that term is used under 15 U.S.C. § 1681s-2. Defendant regularly furnishes consumer credit information to consumer reporting agencies including Equifax Information Services, LLC and Trans Union, LLC. Resurgent Capital Services L.P. manages the account at issue on behalf of LVNV Funding, LLC.

Factual Allegations

5. The account at issue originated with Credit One Bank, N.A., account number ending in 1992 (full account number [redacted]), opened May 19, 2022. The account’s first delinquency date was September 3, 2022. The account was charged off on March 5, 2023, with a correct charge-off balance of $956.24.
6. LVNV Funding, LLC acquired the account on approximately April 14, 2023. Resurgent Capital Services L.P. manages the account on LVNV’s behalf. In its own written correspondence to Plaintiff dated December 8, 2025, Resurgent confirmed: the original creditor is Credit One Bank, N.A.; the current owner is LVNV Funding LLC; and the balance is $956.24. These facts are confirmed by Resurgent’s own letterhead and are not in dispute.
7. Despite the correct charge-off balance of $956.24 being confirmed by Resurgent’s own records, LVNV furnished a balance of $956.00 to the credit bureaus — an inaccuracy on its face compared to the servicer’s own documented balance.
8. Equifax’s consumer credit file for Plaintiff reflects the original creditor as “Credit One American Express” — factually incorrect. The correct original creditor, confirmed by Resurgent’s own letter, is Credit One Bank, N.A.
9. Trans Union’s consumer credit file for Plaintiff reflects the original creditor as “12 Credit One American E” — also factually incorrect.
10. Both Equifax and Trans Union reflected the account as “Open” throughout the dispute period, when the account was in fact charged off on March 5, 2023.
11. The account open date reported by both bureaus — April 14, 2023 — is LVNV’s own acquisition date, not the actual origination date of May 19, 2022, misrepresenting the account’s history.
12. Both bureaus reflect 22 consecutive months of CollectionOrChargeOff reporting from May 2024 through at least March 2026 — a sustained pattern of inaccurate furnishing.
13. On or about June 10, 2025, July 21, 2025, September 2, 2025, October 12, 2025, November 22, 2025, and January 3, 2026, Plaintiff submitted written disputes to Equifax Information Services, LLC and Trans Union, LLC regarding the inaccurate information LVNV Funding, LLC was furnishing. Each submission triggered LVNV’s reinvestigation obligations under 15 U.S.C. § 1681s-2(b). True and correct copies are identified in Composite Exhibit B.
14. Upon receipt of each consumer dispute from a consumer reporting agency, LVNV was required under 15 U.S.C. § 1681s-2(b)(1) to conduct a reasonable investigation; review all relevant information; report results to the consumer reporting agency; and if the information was inaccurate, promptly provide corrected information.
15. Despite six separate dispute cycles spanning over seven months, LVNV failed to correct any material inaccuracy. Equifax’s records reflect it verified the account on June 3, 2025, August 5, 2025, October 7, 2025, and November 7, 2025 — yet left all inaccuracies in place each time. LVNV’s reinvestigations, if conducted at all, were neither reasonable nor meaningful.
16. As of Plaintiff’s most recent dispute on January 3, 2026, the account remained reported with an incorrect original creditor, incorrect open date, and Open status — identical in all material respects to how it appeared before Plaintiff’s first dispute seven months earlier.
17. Defendant’s own Answer, at Paragraph 9, acknowledges that disputes were submitted and processed — a party admission that LVNV’s § 1681s-2(b) reinvestigation obligations were triggered.
18. On December 8, 2025, Resurgent Capital Services L.P. sent Plaintiff a written letter acknowledging receipt of a dispute inquiry and stating it had “initiated a review” of the account. A true and correct copy is attached as Exhibit C. Despite this acknowledged review, the inaccuracies remained uncorrected through at least January 2026.
19. As a direct and proximate result of LVNV’s violations, Plaintiff has suffered actual damages including: denial of credit and financing to TB Group LLC, a Florida limited liability company managed and operated by Plaintiff, since approximately 2022; damage to credit reputation and score; lost business opportunities; and emotional distress, including exacerbation of Plaintiff’s clinically diagnosed Post-Traumatic Stress Disorder and Generalized Anxiety Disorder, confirmed by West Palm Beach Behavioral Health — FoundCare, clinical evaluation April 22, 2026, and letter dated April 30, 2026.
20. LVNV’s violations were willful within the meaning of 15 U.S.C. § 1681n, in that LVNV knowingly or recklessly disregarded its obligations despite six rounds of dispute notifications and its servicer’s own acknowledgment — yet corrected nothing. See Safeco Ins. Co. v. Burr, 551 U.S. 47 (2007); Sloane v. Equifax Info. Servs., 510 F.3d 495 (4th Cir. 2007).

Claims for Relief

COUNT I — VIOLATION OF 15 U.S.C. § 1681s-2(b) (Failure to Conduct Reasonable Investigation — Equifax)

21. Plaintiff realleges and incorporates Paragraphs 1 through 20 as if fully set forth herein.
22. LVNV is a furnisher of information within the meaning of 15 U.S.C. § 1681s-2.
23. On six separate occasions between June 10, 2025 and January 3, 2026, Plaintiff submitted disputes to Equifax regarding the inaccurate information LVNV was furnishing.
24. Equifax forwarded notice of each dispute to LVNV pursuant to 15 U.S.C. § 1681i(a)(2).
25. LVNV failed to conduct a reasonable investigation and failed to correct the material inaccuracies. The inaccurate information remained in Plaintiff’s Equifax credit file through at least January 2026.
26. As a direct result, Plaintiff suffered actual damages. LVNV’s conduct was willful under § 1681n, entitling Plaintiff to statutory damages of $1,000 per violation, punitive damages, and costs. In the alternative, LVNV’s conduct was negligent under § 1681o.

COUNT II — VIOLATION OF 15 U.S.C. § 1681s-2(b) (Failure to Conduct Reasonable Investigation — Trans Union)

27. Plaintiff realleges and incorporates Paragraphs 1 through 20 as if fully set forth herein.
28. On six separate occasions between June 10, 2025 and January 3, 2026, Plaintiff submitted disputes to Trans Union regarding the inaccurate information LVNV was furnishing.
29. Trans Union forwarded notice of each dispute to LVNV pursuant to 15 U.S.C. § 1681i(a)(2).
30. LVNV failed to conduct a reasonable investigation and failed to correct the material inaccuracies. The inaccurate information remained in Plaintiff’s Trans Union credit file through at least January 2026.
31. As a direct result, Plaintiff suffered actual damages. LVNV’s conduct was willful under § 1681n, entitling Plaintiff to statutory damages of $1,000 per violation, punitive damages, and costs. In the alternative, LVNV’s conduct was negligent under § 1681o.

Remedies Sought

• Actual damages in an amount to be proven at trial, including damages for denial of credit, lost business opportunities, and emotional distress;
• Statutory damages of $1,000 per willful violation pursuant to 15 U.S.C. § 1681n(a)(1)(A);
• Punitive damages pursuant to 15 U.S.C. § 1681n(a)(2);
• Costs of suit; and
• Such other and further relief as this Court deems just and proper.

Frequently Asked Questions

Has Defendant been found liable in this case?

No. This is a complaint — a legal filing that contains allegations made by Plaintiff. Defendant has not been found liable for any wrongdoing. A finding of liability requires a court proceeding where evidence is presented and evaluated by a judge or jury.

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This case was recently filed. See the CourtListener docket linked at the bottom of this page for the complete filing record. This page is updated automatically when new documents are filed.

Where can I read the full complaint against Defendant?

The full complaint is publicly available on CourtListener. The Facts as Alleged section above reproduces the complaint’s factual allegations verbatim. The complete case record, including all filings, is available through the docket link at the bottom of this page.

Source: CourtListener. Information on this page is taken verbatim from the court complaint. These are allegations only; no finding of fact has been made.