Cavalry SPV I LLC is one of the largest debt buyers in the United States. If you have received a letter or lawsuit from Cavalry — also known as Cavalry Portfolio Services — it means they purchased your defaulted account from the original creditor for pennies on the dollar. They now own the account and stand in the shoes of the original creditor with the right to collect. You have rights. Cavalry must follow the same federal and California laws that apply to every debt collector. And the fact that they bought the account cheaply gives you real leverage. But that leverage disappears if you ignore them.
Who Is Cavalry SPV I LLC?
Cavalry SPV I, LLC operates under the name Cavalry Portfolio Services and is part of the Cavalry Investments family of companies, headquartered in Valhalla, New York. Cavalry purchases portfolios of defaulted consumer accounts — including credit card debt, auto loans, payday loans, medical bills, utility accounts, and telecommunications debt — from banks and other original creditors at a steep discount and then attempts to collect the full balance plus accrued interest and fees.
Cavalry is licensed to collect debt in California under the Debt Collection Licensing Act, Financial Code § 100000 et seq. You can verify their license status through the Nationwide Multistate Licensing System (NMLS) Consumer Access at nmlsconsumeraccess.org. As a debt buyer and collector, Cavalry is subject to the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., and California’s Rosenthal Fair Debt Collection Practices Act, Civil Code § 1788 et seq. Violations of either statute expose Cavalry to liability for actual damages, statutory damages up to $1,000, and attorney’s fees. 15 U.S.C. § 1692k; Civil Code § 1788.30.
Cavalry has a significant consumer complaint and litigation history. The CFPB complaint database contains thousands of complaints against Cavalry — you can review them here. In 2020, Cavalry settled a Telephone Consumer Protection Act class action for more than $24 million for contacting consumers without consent. Multiple additional FDCPA class actions have alleged that Cavalry misrepresented consumers’ right to dispute debts, imposed false settlement deadlines, failed to identify creditors, and sued on time-barred accounts. See the class action history here.
How Cavalry Collects Accounts
After purchasing an account portfolio, Cavalry sends written notices identifying themselves as the new owner of the account and demanding payment. Under 15 U.S.C. § 1692g, Cavalry must send you a written validation notice within five days of first contact identifying the original creditor, the amount claimed, and your right to dispute. If you dispute in writing within 30 days, Cavalry must cease all collection activity until it provides written verification.
Cavalry is known for aggressive collection tactics including multiple daily calls, settlement offers with artificially imposed deadlines, and rapid escalation to litigation. California Civil Code § 1788.17 incorporates the FDCPA’s requirements and applies them to all collection activity in California — including any pressure tactics Cavalry uses in attempting to collect.
Can Cavalry SPV I LLC Sue You in California?
Yes. Cavalry files lawsuits in California limited civil court for balances under $35,000 under CCP § 85, and in unlimited civil court for larger balances. But to prevail, Cavalry must prove under California Evidence Code § 500 that they own the account, that the account is valid, that the amount claimed is accurate, and that the lawsuit was filed within the applicable statute of limitations.
The statute of limitations on a written contract in California is four years under CCP § 337. The clock typically runs from the date of your last payment or first delinquency on the original account. Multiple class action lawsuits have specifically alleged that Cavalry files suit on time-barred accounts without disclosing that the debt is too old to legally enforce. If Cavalry files suit after the four-year window has closed, you have an affirmative defense — but you must raise it in your written response. It will not be raised for you.
If you are served with a lawsuit from Cavalry SPV I LLC, that is the moment to act.
Learn how to respond to a debt collection lawsuit in California →
Cavalry’s Documentation Problems
Like all debt buyers, Cavalry purchases accounts in bulk. Under California law, an assignee must prove a complete chain of title from the original creditor. Cal. Comm. Code § 9203. California’s Fair Debt Buying Practices Act, Civil Code § 1788.52, requires debt buyers to possess the debt purchase agreement, a copy of the original contract, and account statements before filing suit. Consumer complaints against Cavalry consistently report that the company attempts to collect without providing adequate documentation when requested. In California litigation, a plaintiff must prove its case by a preponderance of the evidence under Evidence Code § 115. If Cavalry cannot produce the original agreement, complete account statements, and an unbroken chain of assignment, it may not be able to meet that burden. Demanding that Cavalry prove its case is one of the most effective strategies available to defendants.
Settling With Cavalry SPV I LLC
Cavalry regularly settles accounts for less than the face amount. Because they purchased the account at a steep discount, they have significant room to accept reduced payment and still profit. Any settlement is governed by California contract law and must be supported by consideration. Civil Code § 1521.
Before a lawsuit, settlements of 40% to 60% of the balance are common. After a lawsuit is filed, Cavalry may still settle — but your leverage is strongest before a default judgment is entered. Any forgiven balance over $600 may be reported to the IRS as income on a 1099-C under 26 U.S.C. § 6050P. Get any settlement agreement in writing before paying anything. The agreement should state the amount being paid, that it constitutes full satisfaction of the account, and that Cavalry will report the account as satisfied to the credit bureaus under 15 U.S.C. § 1681s-2.
Be wary of settlement offers with artificially imposed deadlines. Class action allegations have specifically cited this tactic as a misrepresentation in violation of the FDCPA. A deadline in a settlement letter from Cavalry is a negotiating tactic, not a legal requirement.
Your Rights When Dealing With Cavalry
Cavalry must comply with the FDCPA and the Rosenthal Act in every aspect of their collection activity. Under 15 U.S.C. § 1692c, they cannot contact you at unreasonable hours or after receiving a written cease communication demand. Under § 1692d, they cannot harass or abuse you. Under § 1692e, they cannot make false or misleading representations about the account — including false deadlines or misrepresentations about your right to dispute. Under § 1692f, they cannot use unfair or unconscionable means to collect.
California Civil Code §§ 1788.10–1788.16 sets out additional prohibited conduct under the Rosenthal Act. If Cavalry violates any of these provisions, you may have a claim for actual damages, statutory damages up to $1,000, and attorney’s fees. 15 U.S.C. § 1692k; Civil Code § 1788.30. The one-year statute of limitations under the FDCPA runs from the date of the violation. § 1692k(d).
Frequently Asked Questions
Is Cavalry SPV I LLC a scam?
No. Cavalry SPV I LLC is a legitimate and licensed debt buyer. However, they have a documented history of aggressive and at times illegal collection practices — including suing on time-barred accounts, imposing false settlement deadlines, and contacting consumers without consent. A $24 million TCPA class action settlement and thousands of CFPB complaints reflect that history. The fact that they are legitimate does not mean you owe what they claim or that they can prove it in court.
What happens if I ignore Cavalry SPV I LLC?
If Cavalry has filed a lawsuit and you do not respond, the plaintiff can request a default judgment and the court may grant it. That judgment can be used to garnish your wages under CCP § 706.050, levy your bank account under CCP § 700.140, or place a lien on your property under CCP § 697.310. Ignoring a lawsuit is the worst possible response.
Can Cavalry garnish my wages in California?
Only after obtaining a court judgment. Cavalry cannot garnish your wages without first suing you and winning. Even then, California law caps garnishment at 25% of your disposable earnings or the amount exceeding 40 times the state minimum wage — whichever is less. CCP § 706.050.
How long does Cavalry have to sue me in California?
Four years from the date of your last payment or first delinquency on the original account, under CCP § 337. Cavalry has a documented history of filing suit on time-barred accounts — this practice has been the subject of multiple FDCPA class action lawsuits. If they file after the four-year window, the account is time-barred — but you must raise that defense in your written response.
Can I settle with Cavalry after they sue me?
Yes. Cavalry settles cases regularly even after filing suit. Your leverage is strongest before a default judgment is entered. Get any settlement agreement in writing before making any payment, and confirm the agreement states payment constitutes full satisfaction of the account. Do not treat any settlement deadline in a Cavalry letter as legally binding — that tactic has been the subject of FDCPA class action litigation.
Legal references: 15 U.S.C. § 1692 et seq. (FDCPA); 15 U.S.C. § 1692k; California Civil Code § 1788 et seq. (Rosenthal Act); California Civil Code §§ 1788.30, 1788.52; California Financial Code § 100000 et seq.; California Code of Civil Procedure §§ 85, 337, 697.310, 700.140, 706.050; California Evidence Code §§ 115, 500; California Commercial Code § 9203; California Civil Code § 1521; 26 U.S.C. § 6050P; 15 U.S.C. § 1681s-2. Consumer complaints: CFPB Complaint Database — Cavalry. Class action history: ClassAction.org — Cavalry Portfolio Services.