Settling Old Debt with Northland Group and LVNV Funding
My financial troubles started in '06 at which point i could no longer pay my debts, including a personal loan and a couple cards. I won't bore you with details but I still haven't made any headway towards paying off this debt. No payments have been made and no contact has been made between myself and these creditors. At this point I have over 30, 000 in debt, most of which is student loans. As i understand it, the statute of limitations on my credit cards and personal loan has come and gone, so I don't have to worry about being sued. I think much of this debt should come off my credit report in the next year or two if I just sit tight. Please correct me if any of my assumptions are incorrect. Recently I received a letter from Northland Group Inc. informing me that I owe lvnv funding llc 1, 015.00, (citibank being the original creditor). The letter goes on to say that if I were to pay them 152.28 they would send me a letter confirming that the debt has been resolved.
I was wondering if it would be in my best interest to take this offer at this point?
—rande
Northland Group regularly collects debt on behalf of LVNV. Both companies can be considered debt collectors in their own right, but LVNV Funding is often viewed as more of a debt buyer.
Update as of 6/2018: Northland Group recently changed their name to Radius Global Solutions.
Resolving debts with a collection agency like Northland Group or LVNV Funding
I am responding to your question about settling with LVNV Funding, through their collection agency Northland Group, while considering others will be reading this page later. As a result, some of what I am sharing will be general information that is mixed in with feedback specific to your offer to settle from Northland Group.
Citibank (and many other credit card issuers) regularly sell off debts that go unpaid more than 6 months. Your Citibank credit card sounds like it has gone unpaid for 5 or more years. If you are only now hearing from Northland Group with an offer to settle the Citibank account (on behalf of its owner LVNV Funding), I really doubt that LVNV bought the debt from Citibank. It is more likely that your Citibank credit card was sold to a different debt buyer originally, and maybe even exchanged hands several times, before landing with LVNV Funding. This is not uncommon. It also means, if my assumption is accurate, that LVNV will have paid bargain basement pricing to purchase the right and ownership of your Citibank account.
- What are your future credit and financing needs for the next 1 to 2 years while you are waiting for the Citibank charge off entry on your credit report to fall off from age?
- Is LVNV reporting this collection account on your credit report too?
If you do have immediate or near term future credit goals, and with as much debt you mentioned having that has not been paid for years, settling with Northland Group, even if LVNV is reporting a collection item on your credit report, will have little to no value to your credit report. However, if you take a more broad approach to the outstanding debts, like settling other revolving consumer debts (credit cards and personal loans) with other collection agencies and debt buyers, than settling the old Citibank credit card with Northland Group would make sense.
If you do have other credit goals, and are interested in what it would take to start to improve your credit report, and get your debt to income ratio on your credit report in line with what lenders look for, post your other debts, balances owed, and who is collecting on them, in the comment section below (this goes for anyone reading this page too). I will give some targeted feedback to help you.
What is a normal settlement offer from a collection agency like Radius Global Solutions?
The settlement offer letter you received is not all that normal. I am pointing this out for later readers. The amounts you shared mean Radius Global Solutions is offering to settle with you for about 15% of what they say is now owed to LVNV. That likely has more to do with them recognizing the debt is past the statute of limitations in your state to legitimately sue you in order to collect. T
his also means you could just tell them to pound sand (figuratively).
A typical target for settling a collection account with a debt buyer like LVNV, or with a collection agency like Radius Global, is going to be multiples of that percentage when there is still room to sue and get you to pay.
Is it a great settlement offer? You bet it is. Should you take them up on it? Maybe not.
Settling with one collection agency can wake up other debt collectors.
With someone in your situation who has many debts outstanding, and in the hands of debt collectors, settling one account may breathe new life in to the collection efforts on your other old debts. This is not always the case, and certainly less so if your other collection accounts are past the SOL to sue, but this is a legitimate concern.
If a collection agency like Radius Global, or a debt buyer like LVNV Funding, is showing up on your credit report now; and you settle with them; and that settlement is updated and reflected on your credit report; other collection agencies paying attention may come out of the wood work. For you, that could lead to receiving more debt collector phone calls, and receiving debt collection letters, where all of that had mostly died down to this point. For someone who is not past the SOL with some of their collection debts, it can mean breathing life into debts that reach the point of aggressive collection actions, where that may have not been the case otherwise. If you’re going to potentially call attention to yourself by settling one debt, it is best to have a plan in place to resolve other debts that are not yet past the SOL to sue you.
Based on the little information I have to go on, if I were in your shoes, unless I had some specific credit goals I wanted or needed to accomplish in the next 2 years, I would not take Radius Global up on the offer. If I did have some goals in mind, like qualifying for a mortgage, I would first want to have a strategy for all other debts in place, and not just settle the LVNV account because it is a great offer.
For readers who are not past the SOL to be sued for collection, settling with Radius, LVNV Funding, or any collection accounts for that matter – when set beside credit goals like qualifying for a home loan, refinancing a mortgage, accessing new student loans – settling these types of collection debts for less, and getting a zero balance owed reflected on your credit report – makes a ton of sense.
You shared that much of the 30k in total debt outstanding is from student loans. Part of any strategy would be to look at bringing the student loans out of default if they are government backed student debt. Those are not going to go away regardless of whether they are on the credit report or not. Ignoring them for now if you cannot get them out of default can make sense from a pure monthly budget, and being light on cash flow perspective. But long term avoidance on government backed student loans is not a good idea. You could end up having tax refunds held back and other surprises later on.
If you can answer my question in the comments below, I can offer additional feedback. Anyone reading this page can post questions and specific details about dealing with Radius Global Solutions or LVNV Funding for feedback.
If you would like to talk over your situation on the phone you can reach me at 800-939-8357, choose option 2, or submit my consult request form.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
Hi! I received a settlement letter from Radius and it list the account balance and next to it the settlement amount
When I went online to pay it doesn’t show the settlement amount it shows original amount- Do they need to update their website or will the letter suffice as arranged settlement? I would feel more comfortable paying online instead over the phone but the online amount showing is higher
Please advise
If I have a letter outlining the settlement, and I am paying it by the due date, I would be okay with that. I would also be okay paying by phone.
Is Radius collecting a debt for LVNV?
Wow – this was very informative. Thank you for that. We live in Texas and received a letter today from Radius Global for an offer to settle a $999 debt for $349. This was a debt to Synchrony Bank for an Old Navy account where the last payment was made in October 2013 and it was charged off in March of 2016. (Not proud of it – my husband and I were both unemployed for a lengthy period of time.) If my calculations are correct, this debt is roughly six and a half years old.
We have been working for awhile now to repair credit and the last thing we want is for this to be reported. (It may be too late but not seeing anything right now.)
Do you have any thoughts on the matter?
Thanks in advance…
If it were me, and the debt was passed the SOL to sue me in my state, and either not on my credit, or 6 months (like it sounds) from falling of my credit, I would just let things lay.
I’ve been served on Saturday in Texas by lvnv funding .I owe credit one bank but have not worked in a year and half. The amount of claim is 2200.00 dollars which 500 is lawyer fees. Papers say I have 14 days to reply should I contact lawyer for settlement or take to court for a settlement there. I do not have any lump sum to give but may be able to pay a little a month. If I show up in court to give a response would I be charged court costs fees as well . Thanks for any help you give
Check out more details about settling when sued. If it is workable, I would defend the suit to buy time to save up and settle out of court.
I have to appear at court to file a written answer what or what shouldn’t I say to help me to try and buy myself a little more time to save up money to settle case if law firm wants to continue with the suet. I have limited funds for a lawyer. I hope they don’t have all their paperwork or don’t show. Please help
I would still encourage you to consult with an experienced debt collection defense attorney in your state. Where are you located? I can email you contacts to some who offer a no cost initial consult if you you like?
It can help to go look up similar cases that were defended in your court and read through the court filings. The process will not seem as foreign to you after that, and it could lead build your confidence about how to proceed.
I have a judgement for a credit card debt dated back in 2009. I’ve had health problems, and was unemployed since then; therefore, unable to pay it off. Two weeks ago 11/2016 I started a job, and right away a debt collector (LVNV FUNDING, LLC) has being calling me, even at work and very unprofessionally threading to garnish my salary.
Due to the amount of years of this debt, and my financial situation not being the best, do I have any choices to handle this situation before they contact my job to garnish my wages? I could even get fired if they force my company to garnish my salary.
If it is a legitimate judgment, LVNV can look to garnish your wages, levy your bank account, or lien property, as is allowed by your state.
The better outcome, unless you are exempt from wage garnishment, is to negotiate a lump sum pay off for less than the balance owed, or proactively set a payment plan you know you can succeed with. That way they leave your employer out of it.
I have a judgment from LVNV Funding. It’s for $23,000! I think it was a credit card debt. That was put on me in 2012. I was never served and I just found out about it when I got my credit report 6 months ago. It was filed in Florida. I now live in Maryland. My only income is Social Security disability. I believe it’s too late for a motion to vacate. I want to get a USDA mortgage within a year so I’m considering settling. I’m scared and don’t know where to start.
Should I make an offer or let them make an offer? Does it matter what state I hire an attorney in?
You may not need an attorney, or at least not yet. Can you pull together 30 to 50 percent of the balance owed in order to settle?
My husband has a judgement against him from a really old debt, about 8 years ago. The debt was sold to LVNV Funding. We have not heard anything concerning the debt for a long time. However I would like to negotiate a settlement with them and pay the judgement and get it removed from our local court . How should I go about contacting them and negotiating with them?
Judgment debts can be negotiated and settled for less with LVNV. You often will have to work that out with a third party that LVNV places your account with. My feedback will change from one collector to the next. Give me a call at 800-939-8357, ext 2, or fill in the talk to Michael form in the right column of this page so we can email each other in order to schedule a time that works to connect on the phone.
I received a letter from First National Collection Bureau, Inc and it says the current creditor is LVNV Funding LLC. This letter is for a debt that is over 7 years old and is not even showing up on my credit report. They have been mailing letters to my Mother In Laws home in Ohio and I live in California and have for many years. It says that unless I notify them within 30 days and dispute the validity of this debt they will assume the debt is valid. If you notify this office in writing within 30 days after receiving this notice that you dispute the validity of the debt or any portion of it this office will obtain verification of the debt or obtain a copy of a judgement and mail you a copy of such judgement or verification. But at the end it says they will not sue me because the debt is too old. It does not say when the debt was from I think I remember having this account over 7 years ago. I have not contacted them but should I send them a letter to have them verify the debt even if it is so old and not on my credit report or should I talk to an attorney?
That catch all language that First National used is found in most collection notices in use nationwide. It is there as a CYA for the collector.
If the debt is more than 4 years unpaid it is highly unlikely that LVNV Funding will sue, as that is now time barred in California (4 yr SOL). The debt is further too old to appear on your credit reports in anyway, which qualifies this as zombie debt.
If you want collection notices and calls to stop I would suggest responding with a cease communication letter sent certified mail.
LVNV sued me over a debt owed originally to a furniture store. They won, and there is now an Abstract of Judgment against me. The amount is for $5800. That was more than 10 years ago and the judgment no longer appears on my credit report. However, it is still held against me (Lien) in that I have to pay it before I can sell my home. I haven’t heard anything on this debt for quite a while but, last month, received a letter from a law office/credit collector reminding me that they can have the judgment put back on my record and that I should contact them and set up payments for the debt – which they claim is $12,000 now. This is not the same firm that handled the suit for LVNV and sent me letters and settlement offers in the past. BTW, the last settlement letter I received from the original law firm was for $6912.00.
Should I contact LVNV, the original collection office or the current collection office to negotiate a settlement? How do I ensure that the Abstract of Judgment is removed so that I can sell my house? I am not sure in which order to do things.
You will likely have to negotiate the settlement with the collector LVNV sent your account to.
A product of negotiating your judgment will result in the court being updated that the judgment has been satisfied. The court record is what matters. Title will clear with that.
Be careful what you say to the debt collector. If you want help with this you can call me at 800-939-8357, option 2 rings to me.
Thank you for your reply, Michael. Unfortunately the only way I can see my fiance coming up with this money is through a personal loan. Because it is 8 years old it has fallen off his credit and he has a 640 which isn’t great, but isn’t terrible. . He has another debt with a credit card and due to his financial status and the money he spends on his insulin monthly, that collection agency said he qualified for a low payment of $33.17 a month. If we cannot get a personal loan to make the $4300, do you think he can ask for a low monthly payment like the $33 even if he is stuck paying it off for many years to come or until he can come up with the money and ask for the original settlement deal? Also we want to see the original judgement so should we ask for that first to buy us time to see if he can get a personal loan?
Thank you so much for you help.
Seeing the judgment does not really buy you time at all. It just is what it is.
If it were me I would not want long term payments. I would save up to settle in a single lump sum or close to it. Let me know what comes of the personal loan and how long it will take to save up if that does not go through.