What Is LVNV Funding?

LVNV Funding is a company that buys outdated consumer debts or "junk debts." LVNV Funding then forwards the debt it has bought to Resurgent Capital Services LP, its debt collection and management arm. While the debt appears on the credit report as owned by LVNV Funding, consumers are directed to work with Resurgent Capital Services, based in Greenville, S.C. Both companies are under the umbrella of Sherman Financial Group, LLC.

Junk Debt

Consumer debt, such as credit cards, have a lifetime expectancy of six years for most states. Called a statue of limitations for consumer debt, this means that if a consumer does not pay a collection agency off within six years, the collection agency will treat it as a useless and noncollectable. After the statue of limitations expires, most states will treat the debt as not legally payable.

Significance

LVNV Funding, or companies like it, buys outdated consumer debts (those that completed the six-year life cycle) and tries to collect from the consumer. When LVNV Funding buys the debt, the company will appear on the consumer's credit report as the owner of the debt. On paper, this can look like current debt and therefore payable.

Bringing Junk Debt Current

The only way junk debt becomes current is if the consumer makes a payment. If the consumer makes a payment agreement with LVNV Funding, that will also bring the debt current. LVNV Funding will then be able to take the consumer to court to collect the money.

Note from LVNV Funding

According to LVNV Funding's company Web site, the company purchases the "portfolios of both domestic and international consumer debt." They turn the debt over to Resurgent Capital Services LP after purchase. Resurgent Capital Services is in charge of managing the purchased debt and acts as the debt collector.

Warnings

According to several consumer reports, LVNV Funding goes under multiple company names and are said to "harass" consumers. The reports also state that LVNV Funding has tried to re-open debts that were already paid off. Ensure that you are aware of your debt and know how much you owe and to whom, in case LVNV Funding places a judgement against you. Check with your individual state's statute of limitations for consumer debt to see if your debt has surpassed the lifecycle and is there for legally unpayable.