The FDCPA mandates three areas of compliance;
1. Identifying oneself as a debt collector.
2. Advising the debtor of the right to verify and dispute the debt.
3. Refraining from harassment, false representations and third party communications.
It is my opinion that LVNV Fundings business practices fail all three of these mandates.
Firstly, LVNV Funding is considered a Debt Collector under the purview of the FDCPA.
Federal courts have concluded that a person purchasing a debt after default and whose principal activity was the collection of debt was a debt collector within the purview of the FDCPA. See, for example, Kimber v. Federal Financial Corp., 668 F. Supp. 1480 which concluded that the defendant corporation, even though it was collecting debts for itself, was a debt collector within the meaning of the FDCPA because the corporation regularly collects debts and debt collection is its principal purpose, and because the debts the corporation collects were already in default when they were assigned to the corporation and thus the corporation falls within the assignee exception to the definition of creditor. See also In Little v. World Financial Network, Inc. Civil Action No. N-89-346 (d. Conn. July 15,1990). And Maloney V. LVNV funding.
Secondly, This company has reported the above referenced account on my credit report since August. I have disputed this item with the 3 major credit reporting agencies and they reported that LVNV Funding confirmed the information furnished is accurate & the account as valid.
Reporting an alleged debt by a debt collector to a consumer reporting agency is a communication in connection with the collection of a debt and gives rise to a violation of 15 U.S.C. 1692e[8], of the FDCPA. Sullivan v. Equifax WestLaw 799856 [U.S.D.C.E.D. Pa. 2002].
Section 809 (a) provides, (a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing —Section 807 (11) and Section 809 notices required by the Fair Debt Collection Practices Act (FDCPA)
LVNV Funding never sent a notice of Validation rights to my attention in August of and has failed to do so as of this date.
Thirdly, I'm sure they know, under FDCPA Section 809 (b), they are not allowed to pursue collection activity until the debt is validated. This would include assigning collection activities to their sister Company, Resurgent Capital Services. (whom also continued collection activity after a dispute, and request for validation.) and the continuing reporting.
Fourthly, publication of a false representation as to the character, amount or legal status of an alleged debt results in a violation of 15 U.S.C. 1692e.
LVNV Funding's website directs the consumer to make all requests to Resurgent Capital Services, which implies to an unsophisticated consumer that they cannot contact them or request validation and dispute directly with your firm, a debt collector, which is a right guaranteed by Federal law.
Fifthly; when this company's agents or attorneys attempts to project LVNV funding as a Creditor to me, to others, to credit reporting agencies, or in a court of law, it is also a false representation of the character, amount or legal status of an alleged debt, and your firm is liable for their actions.
LVNV Funding and resurgent Captial services are wholly owned subsideraries of the Sherman Financial Group.
Sherman Financial Group started by Tony Ettinger, owns a wide list of subsideraries and after being registered as a coproation in many states, has becaome a Delware corporation. It is an integrated company that purchases, services, resells and secures distressed and performing debt, including, but not limited to, credit card receivables, telecommunications receivables, student loans, mortgage deficiencies and all types of bankruptcy debt.
Sherman is a company engaged in purchasing and servicing receivable portfolios acquired at a discount, and originating and servicing credit card receivables. The company consists of numerous asset holding and operating entities throughout the United States and in Mexico City, Mexico.
The director of Sherman Financial is Scott Silver and he is listed as one of the managers of LVNV funding on the state of Nevada government website in the corporation search. It also gives an address of 200 meeting St, STE 206 Charleston, SC, which is also the same address and suite # for Sherman Capital Markets LLc, which Scott Silver is also a manager of.
Scott Silver is listed on an OCC filing when Sherman Financial Group purchased Marin Bank in California. Marin Bank subsequently moved to Las Vegas Nevada and changed its Name to Credit One Bank.
Credit One is one of the largest issuers of Visa credit cards in the United States and is a wholly owned subsidiary of Sherman. Credit One currently offers only unsecured Visa and MasterCard credit cards. Credit Ones target market is (was) sub-prime borrowers who desire to either build or repair credit and ultimately become eligible for increased credit availability. Customer contact is made by telephone, through the mail and via the Internet.
Sherman paid Radian Group LLC $278 million for common and preferred shares of Sherman representing about 21 percent of the company. Sherman paid MGIC Investment Corp. $240.8 million for common and preferred shares that represented about 16 percent of Sherman. (Were talking publicly traded NYSE mortgage insurers on sub-prime loans)
Charleston, S.C.-based Sherman generated revenues of $1.05 billion in according to MGICs 2006 annual report filing with the SEC. Sherman contributed nearly $122 million to MGICs pretax income last year, Michael Zimmerman, MGICs vice president of investor relations.
1.05 Billion? The scale of this is unbelivable.
What is the FTC doing? Nothing so far...
Jean
gilbert, Arizona
U.S.A.
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