Thursday, March 30, 2006
Update on LVNV Funding validation and credit reporting
“LVNV Funding” has been the most searched for term since I posted about it a while ago. I just posted the letter LVNV sent for “validation of debt” as well as the actual reporting:
LVNV Funding “validation” and credit reporting
The validation is total baloney. I may end up asking Allison Moon to supply a notarized sworn statement and the documentation with the “information” she has about the account.
Even if they supply documentation for the account, I don’t think it should be admissible evidence in court.
After all, they have no personal knowledge about the account, no application and most likely nothing to prove that the debt is legit. We can’t even submit credit reports received directly from the CRAs to document incorrect reporting by creditors. There’s no way that a collector can certify that a debt is legit. Only the original creditor can do that.
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Update 10/15/07: The Phoenix federal court ruled that I could NOT use credit reports received directly from the credit bureaus to substantiate my claims against Target without “authentication” by the CRA (declaration certifying the report and data.). I appealed and I am currently awaiting the appeals court’s ruling. And, I was in federal court and collectors file in state courts, so different rules apply.
If I can’t use the original credit report in court, then collectors can’t use any info from the original creditor unless it is authenticated by the original creditor’s sworn declaration. I’m just looking for EQUAL treatment in court. However, most collectors don’t even have any statements, they often have nothing but some unauthenticated printout.
If you’re being sued by any collector, check of course the statute of limitations in your state too.
And don’t start disputing the credit reporting and/or the debt with the collector INSTEAD of filing your motion to dismiss or motion for summary judgment. It’s too bad that so many people are completely ignoring their credit until they get sued. If they had some COUNTER CLAIMS, they could get a check from LVNV and most likely, LVNV wouldn’t sue them at all.
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The CREDIT REPORTING
That’s as bizarre as their validation, but not that unusual. I’d say that close to half the recently reported collections are reported as TRADELINES and therefore seriously lowering the FICO scores. The balances are included in the B/L ratio, the account is CURRENTLY delinquent and therefore devastates the scores.
The accounts are very effectively re-aged and misreported to inflict maximum damages on consumers.
The CRAs of course know that collectors don’t have tradelines and this would make a great RICO suit.
Between the absurd credit reporting and validation issues, LVNV should be writing the checks to the consumers. Factual disputes with the CRAs and the dispute with LVNV should result either in deletions or FCRA and FDCPA violations.
Update 10/15/07:
I keep getting a ton of reader mail about LVNV and I thought I had already made it clear in all my LVNV postings that I will not provide personal consultations free of charge. However, a reader just sent me this link and with all the comments below, it’s no wonder that people write to me, I suppose few people read all the way to where I finally disabled comments.
It’s unfortunate that I didn’t have a single person contact me who was suing LVNV and providing the real thing, the unedited complaint, motions, docket, etc. to post so that everybody can use it as a sample. A lot of people are being sued, it’s an epidemic. It’s such EASY money for collectors, most consumers don’t even TRY to put up a fight, most collection suits result in default judgments.
I’m not a lawyer, so I can’t give you legal advice.
I can only give you CREDIT advice and give you links to legal resources, tell you what I would do, etc. And I have no intention of being forced into bankruptcy by people who think I need to work free of charge. Some even insist that I have an obligation to work for them, often justifying their bizarre demands with their argument that it only takes “a few minutes” of my time.
It’s MY time and I decided that it’s more important to work on legislative changes and make a difference for ALL.
See my 10/12/07 press release:
Focus Receivables sued for violating Fair Debt Collection Practices Act
Not only do I not owe anyone “a few minutes”, but I don’t do half ass work—there is certainly no lack of horrible advice on the web, try the public FREE forums. If you want my advice, subscribe to CreditFactors. I’ll be glad to answer questions at the forum free of charge and if you want privacy and a complete analysis, you can order that too (as time permits).
I hope I’ll get less LVNV mail requesting free consultations now.
