At present, the internet is teeming with questions and inquiries regarding an unfamiliar name: LVNV Funding. We say unfamiliar, because to the average consumer, it is an unknown corporation and one that they haven’t dealt with before. In the shady world of debt however, they are all too recognizable.

The first time that you heard of LVNV funding might have been when you saw the name at the top of a summons to court. In the attached complaint, this company claims that you owe them an alarming amount of money.

Who are LVNV Funding?

The company itself innocently enlightens us that it “purchases portfolios of both domestic (U.S.) and international consumer debt owned by credit grantors including banks and finance companies, and by other debt buyers”.

In real terms, they buy thousands of old debts from credit card companies, banks and loan companies for pennies and then makes it their business to pursue and collect that old debt with inflated fees.

For example, imagine that you took out a credit card with a department store such as Sears and you use that for some major purchases. You might max out the card to its $3,000.00 limit and then fall on hard times. You fail to make the minimum payments and default. Sears will, of course, try hard to reach a payment agreement with you, make a settlement or retrieve the full amount from you. If all of those attempts fail, after a few years they may write-off the debt, perhaps claiming it as a deductible tax loss.

You would be forgiven for thinking that is the end of the story but unfortunately it’s not. That’s when junk debt buyers such as LVNV Funding come along and buy your debt for a few cents. They are now seen as the ‘new owners’ of the debt and can try to collect it from you.

Adopt a Fighting Attitude

The fact that it’s not the original creditor that is suing you is actually in your favor and may help you win the impending lawsuit so gear up and get ready, because you do have good prospects.

As you can imagine, many people in debt completely panic when they receive a summons. Maybe they don’t know where to look or who to ask for help. Others believe there is no point fighting a big company because the outcome is inevitable. They do not do their research and they may not even bother returning an answer to their summons. This is the kind of consumer that a junk debt buyer loves and is hoping is at the end of a debt because in cases like these the chances of them collecting their money is extremely high.

However, when a defendant chooses to stand up and fight, things get a lot tougher for the plaintiff. In fact, when the junk debt buyer realizes that this consumer will not concede without a tough challenge, they may even choose to give up themselves and concentrate on the 90% of people who don’t fight. Some consumers have reported that after working hard to challenge a lawsuit, the LVNV lawyer did not even appear in court and the defendant won the case by default.

Motion to Dismiss / Demurrer

These are pleadings submitted that challenge the sufficiency of the complaint, cross-complaint or answer. Instead of challenging fact, it challenges issues of law. A demurrer is not requesting dismissal but is an objection to the case. A defendant can file a demurrer or motion to dismiss in objection to a case because the plaintiff did not state a valid claim. It argues there is no legal claim even if the facts offered by the plaintiff are correct.

In some states a demurrer no longer exists and now your only option is a motion to dismiss. Within other states, for example, California, the demurrer is still functioning. Also, be very careful with when you submit a motion to dismiss because laws in each state differ. In some states, you can file a ‘motion to dismiss in lieu of an answer’ meaning that instead of responding to the summons, you file a motion to dismiss. In other states you must always respond to the summons and then file any motions. Some allow you to file both simultaneously.

Look up your local court rules and see what your state allows.

Grounds for Objection

Whether you decide to file for a demurer or a motion to dismiss, you need to research the relevant laws and elements of LVNV’s claim that do not observe them.

Just one example of this may be:

• That the cause of action is barred by a prior judgment or by the statute of limitations;
  This means that the plaintiff does not have the right to file a complaint due to a previous judgment regarding the same claim or because the debt is too old.

Your local court rules will list other grounds for dismissal so do your research and see which grounds you have for dismissal.

The Defendant’s Package gives more examples, instructions on how to submit your motions and sample motions to help you.

Statute of Limitations

As we have already seen, this can be used as grounds for dismissal. Any contract has a given amount of time before it becomes too late for a party to sue. Each state differs in the time allowed and considering that in some states it is as few as 3 years, it is likely that your debt is too old.

Be extremely careful, though. If you make any payments after the statute of limitations has expired, it may be reset and the claim becomes live and legal again. Do not make any new payments!

Keep in mind that LVNV Funding do not want to work hard to collect their money. Instead, they want to pursue cases that lead to default judgments and easy conquests.

If you need helping fighting your case successfully, use The Defendant’s Package.