LVNV Funding LLC is one of the largest debt buyers in the United States. If you have received a letter or lawsuit from LVNV Funding or its servicer Resurgent Capital Services, it means they purchased your defaulted account — most likely a credit card, personal loan, or retail 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. LVNV must follow the same federal and California laws that apply to every debt collector. Courts have repeatedly found defects in LVNV’s documentation, dismissed their cases, and held them accountable for illegal collection practices. But those outcomes only happen when defendants fight back.
Who Is LVNV Funding LLC?
LVNV Funding LLC is a passive debt buyer owned by Sherman Financial Group, headquartered in New York. LVNV purchases massive portfolios of defaulted consumer accounts — primarily credit card debt — from banks and other original creditors at a steep discount. LVNV itself does not typically contact consumers directly. Instead, it uses its affiliate Resurgent Capital Services, LP, based in Greenville, South Carolina, to service and collect on the accounts it owns. When you receive a collection letter or a lawsuit, the plaintiff is often LVNV Funding LLC while Resurgent Capital Services handles the day-to-day collection activity.
LVNV is licensed to collect debt in California under the Debt Collection Licensing Act, Financial Code § 100000 et seq. The California DFPI subpoenaed LVNV Funding and Resurgent Capital Services in 2021 as part of an investigation into debt collection practices in California. You can verify LVNV’s license status through the Nationwide Multistate Licensing System (NMLS) Consumer Access at nmlsconsumeraccess.org. As a debt buyer and collector, LVNV 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 LVNV to liability for actual damages, statutory damages up to $1,000, and attorney’s fees. 15 U.S.C. § 1692k; Civil Code § 1788.30.
LVNV Funding and Resurgent Capital Services have accumulated over 8,800 complaints in the CFPB complaint database — you can review them here. The most common complaints involve attempts to collect debts already paid, collection on time-barred accounts, and inaccurate credit reporting.
LVNV’s Enforcement and Litigation History
LVNV has a documented pattern of legal problems that consumers facing their lawsuits should know about. In Maryland, LVNV Funding and Resurgent Capital Services paid $1 million to the state’s licensing board and were required to dismiss 3,654 of their own pending cases after regulators found they had filed false and misleading affidavits in court while operating without a license. A Tennessee appellate court excluded LVNV’s affidavits purporting to establish chain of custody of debt — finding they contained hearsay and were generated for litigation rather than in the ordinary course of business, making them inadmissible.
In California, LVNV Funding v. Rodriguez (Cal. Ct. App. 2024) demonstrated the real-world consequences of LVNV’s bulk purchasing practices — LVNV sued the wrong Yolanda Rodriguez in Fresno County Superior Court, having confused her with a different person of the same name. The case was dismissed only after the defendant proved the debt belonged to someone else with a different date of birth and Social Security number. LVNV’s bulk-purchased portfolios frequently contain errors of exactly this kind.
Federally, McMahon v. LVNV Funding, LLC, 744 F.3d 1010 (7th Cir. 2014) established that sending collection letters on time-barred debt without proper disclosure of the time-bar may itself violate the FDCPA — a holding that directly shapes how courts evaluate LVNV’s collection communications nationwide.
How LVNV Collects Accounts
After purchasing an account portfolio, Resurgent Capital Services — acting on LVNV’s behalf — sends written notices identifying LVNV Funding as the owner of the account and demanding payment. Under 15 U.S.C. § 1692g, the collector 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, collection must cease until verification is provided.
If initial contact does not result in payment, LVNV escalates to litigation through collection law firms. California Civil Code § 1788.17 incorporates the FDCPA’s requirements and applies them to all collection activity in California. Both LVNV and Resurgent must comply.
Can LVNV Funding LLC Sue You in California?
Yes. LVNV files lawsuits regularly in California limited civil court for balances under $35,000 under CCP § 85, and in unlimited civil court for larger balances. But to prevail, LVNV 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. Federal courts have found that LVNV and similar debt buyers routinely attempt to collect on time-barred accounts — and that collection letters on such accounts without proper disclosure may themselves violate the FDCPA. McMahon v. LVNV Funding, LLC, 744 F.3d 1010 (7th Cir. 2014). If LVNV 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 LVNV Funding LLC, that is the moment to act.
Learn how to respond to a debt collection lawsuit in California →
LVNV’s Documentation Problems
LVNV is a passive debt buyer — it purchases accounts but does not originate or service them. 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.
Because LVNV purchases massive portfolios of accounts at multiple removes from the original creditor — passing through Sherman Originator LLC, Sherman Originator III LLC, MHC Receivables LLC, and other intermediate entities before reaching LVNV — the documentation trail is frequently broken or incomplete. Courts have found this chain of title defective. Tennessee courts have excluded LVNV’s affidavits as inadmissible hearsay. A New York court criticized LVNV for using the court system to “force contact with alleged debtors” while having “not a scintilla of evidence.” And LVNV has been required to dismiss thousands of its own cases in multiple states when its documentation failed to withstand scrutiny.
In California litigation, a plaintiff must prove its case by a preponderance of the evidence under Evidence Code § 115. Demanding that LVNV produce its full chain of assignment, the original credit agreement, and complete account statements — and forcing it to prove every element of its claim — is one of the most effective strategies available to California defendants.
Settling With LVNV Funding LLC
LVNV regularly settles accounts for less than the face amount. Because they purchased the account at a steep discount — sometimes as little as one to three cents on the dollar — they have enormous room to accept a 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, LVNV 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 LVNV will report the account as satisfied to the credit bureaus under 15 U.S.C. § 1681s-2.
Your Rights When Dealing With LVNV
LVNV and Resurgent 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. 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 LVNV or Resurgent 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 LVNV Funding LLC a scam?
No. LVNV Funding LLC is a legitimate and licensed debt buyer. However, they have a documented history of filing suits on time-barred debts, suing the wrong consumers due to bulk portfolio errors, filing affidavits courts have found inadmissible, and being required to dismiss thousands of their own cases in multiple states. 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 LVNV Funding LLC?
If LVNV 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. LVNV counts on defendants not responding — that is how they obtain the vast majority of their judgments.
Can LVNV garnish my wages in California?
Only after obtaining a court judgment. LVNV 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 LVNV 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. Federal courts have found that LVNV sends collection letters on time-barred accounts without proper disclosure — a practice the Seventh Circuit held may violate the FDCPA. McMahon v. LVNV Funding, LLC, 744 F.3d 1010 (7th Cir. 2014). If LVNV files suit after the four-year window, the account is time-barred — but you must raise that defense in your written response.
Can I win against LVNV Funding in California?
Yes. Courts across the country — including in California — have dismissed LVNV’s cases for failure to produce adequate documentation, excluded their affidavits as inadmissible hearsay, and found their chain of title defective. In California, LVNV has sued the wrong consumers due to bulk portfolio errors and been required to dismiss. If you respond, assert your defenses, and force LVNV to prove every element of its claim, you may find they cannot meet their burden.
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. Key cases: McMahon v. LVNV Funding, LLC, 744 F.3d 1010 (7th Cir. 2014); LVNV Funding v. Rodriguez, Cal. Ct. App., Fifth District (2024). Consumer complaints: CFPB Complaint Database — LVNV Funding.