Both Resurgent Capital Services and LVNV Funding are part of the Sherman Financial Group based in South Carolina. I have been helping people resolve debt with this debt buyer and collection agency for many years. If you are dealing with this company, as far as debt buyers go, it could be worse!
LVNV Funding and Resurgent Capital buy unpaid personal loans from SOFI (and several other online lenders), and also delinquent credit cards. They pay far less than face value for the debts they buy and rely on their sophisticated collection processes to turn a profit.
Now that you know what Resurgent is about… what is your goal?
The first thing I try to establish when helping people resolve collection accounts is to determine what goal they are trying to reach.
Do you just want to understand why you are seeing Resurgent on your credit reports, and how to get them deleted? Are you trying to avoid being sued, or have you already been sued? Are you trying to avoid paying Resurgent completely?
I am going to answer all of those questions in what follows, so be sure to read through to the end. You are welcome to ask questions at the end of the post, request a settlement estimate, and even schedule a strategy phone consult with yours truly.
Resolving Your Debt with Resurgent Capital or LVNV Funding
Because I spend most my time helping people that reach out to me to resolve debts in collection, I default to talking about how to do this first. The fact is, most debt collectors and debt buyers, including Resurgent and LVNV, want to work with you to resolve your debt. Would they like to get paid in full? Sure! Would they like all the money yesterday? You bet! But they also know how unrealistic an expectation that is.
You have an opportunity to come to a workable outcome where you can settle with Resurgent Capital for less than what you owe. Our experience helping people to resolve debt is that having a lump sum of cash to work with can sometimes save more money through a negotiated settlement, than if you must make monthly installments on the settlement.
If you do not have a lump sum to work with, negotiating a good settlement that you can pay over many months is an option. How low your account will go when you need to structure your payments over a longer period of time will vary from one person’s situation to the next.
The results when settling your Resurgent Capital account can also vary by who it is that is collecting on the account.
LVNV Places Your Accounts with Other Collection Agencies
Unlike other large debt buyers, like Portfolio Recovery and Midland Credit who initially buy and collect debts internally, LVNV will predominately place accounts with external collectors. This means you could be seeing Resurgent on your credit reports but hearing from a third party contingency collection agency.
This is a point of confusion for some of us. Why is my bank showing a negative on my credit along with Resurgent? On top of that, why am I hearing from a completely different collection agency or law firm? I provide these details in how duplicate credit reporting works.
If Resurgent Capital has LVNV collecting on your account, or if the typical contingency collection agency currently has your debt, the settlement outcomes we see can often be targeted under fifty percent.
If Resurgent has sent your account to a law firm, whether they have sued to collect or not, negotiated settlements tend to be higher than fifty percent.
For anyone trying to get a grip on what your settlement options are, and provided you have some cash to work with, or can commit to pay monthly, it is important to get a handle on the situation early. We can help you save more money in your settlement, and often get you more time to pay (if that is what you need), the sooner negotiations can start.
They Buy Other Collection Company Debts
Resurgent will sometimes buy unpaid collection accounts from other debt collectors that had already purchased them. This can lead to some confusion, like was the case when they bought most of the old Sallie Mae/Arrow Financial Services accounts.
Resurgent more recently (a couple years ago) bought up most all of the accounts owned by a previous debt buyer Cach LLC.
Chances are, if you have an old Cach LLC judgment in the courts, you will need to deal with LVNV to resolve it. If that is what is happening with you, I suggest scheduling a call with me to talk over your strategy. You can do that by clicking the scheduling box at the end of this article, or the get help button at the top.
You may already have an existing judgment from Resurgent Capital. Here too, it is a good idea to connect with me and take a look at your overall debt situation and how to accomplish your goals for resolving a court judgment from Resurgent.
Prefer to Not Pay Resurgent or LVNV Anything Ever?
Are you passed the statute of limitations (SOL) to be sued in your state? If you are, and you have not been sued by Resurgent yet, you may be able simply let this account go by.
This is made more so if you stopped paying the original loan or credit card more than 7 years ago, as Resurgent would have to stop credit reporting at the same time your bank would. I cover this with more detail in when do collections fall off my credit.
If the time to legitimately sue you has passed, and Resurgent can no longer credit report, there is nothing that would hold me back from sending Resurgent or LVNV a cease communication letter. You may find you have to send a cease communication letter to a collection agency Resurgent sent your account to.
Warning: Be careful using debt validation and cease communication letters if they still have time to sue you in your state. Purchased debts are more easily validated by debt buyers these days, and sending a cease communication letter to a debt buyer that still has time to sue you can be more of an invitation to do so.
Resurgent Capital Credit Reporting and Pay for Delete
In recent years we have started to see some really awesome developments with debt buyer credit reporting policies! If Resurgent Capital is on your credit reports, and still has time within the 7 year derogatory credit reporting life cycle (it has not yet been 7 years since you stopped paying the original creditor), you can pay or settle the debt with them and Resurgent will delete it from your credit!
This is something Resurgent has rolled out as a broad credit reporting policy. It is not something we have to negotiate with them.
Because you do not get anything more beneficial from Resurgent by paying a debt in full vs settling with them for less, I would want to negotiate the best savings I could.
If you must pay a settlement with Resurgent over a period of several months, they are not going to delete the credit reporting until you have fully paid your settlement.
It can take several weeks after your lump sum, or final payment clears, for the credit reporting removal.
This can be tremendously helpful if you are trying to clean up your credit to accomplish a personal goal, like buying a home!
Texts and Emails About Your Resurgent Capital Debt
You may start to see texts and emails from debt buyers like Resurgent Capital and LVNV Funding. This is because there are new national collection rules rolling out near the end of 2021 that allow for new forms of communication.
You will have the ability to opt out, and even opt in, to these different forms of debt collection communications.
If you have an account with Resurgent Capital or LVNV Funding, and would like to talk strategy, need professional help, or just want to get some questions answered, you can schedule a call with me, request a settlement estimate, and even post anonymously in the comment section below.
Settled with Resurgent for 40% of what was owed on approx $34k debt. I wanted to thank Michael for having a call with me to discuss strategy. It worked out and I am super relieved.
I realize this post was 3 years ago but if I came across it today others do as well. You said that collectors can easily validate accounts these days, I think you’re confusing debt validation with debt verification, they are different things, verification is satisfied by giving the name & address of original creditor, balance on the account and name associated with account, validation is proving the validity and accuracy of the account as well as who owns the debt, that is not so easy, collectors will send a copy of a billing statement and an internal account summary, some will send a bill of sale and/or an affidavit but none of these things prove ownership, the only thing that proves who owns the debt is the purchase agreement between the original creditor and the debt buyer, 99.9% of these agreements will state that the original creditor gives no representations as to the accuracy of the accounts sold because of this the collector won’t let you see it, it may prove the collector owns the debt but if the original creditor can’t guarantee it’s accurate how can the debt buyer say it’s accurate.
That strategy has worked from some (not all) people who are defending a law suit all the way to trial.
There are additional costs and time commitments to fighting a lawsuit with no guarantee of the outcome.
Most people do not want to be sued. It is what it is when it happens, and fighting the suit is often the right tactic for a host of reasons, but my experience is that people with a willingness and ability to resolve past debts are better off being proactive than reactive.
Hi Michael!
I am wondering how long it it takes certain creditors to sue on average after the account has been charged off.
I have big loans with…
Discover $35k
Wells Fargo $40k loan and $40k in cards
Sofi $70k
American Express $10 Loan and $3000 in cards
Light Stream $20k
Laurel Road $30k
My last payment for all loans was February of this year.
Sofi and Discover say they are charging off the Loans at the end of this month, June 30th.
I don’t think I look that collectible on paper.
No assets
$78k salary
400 credit score (seriously)
I am basically wondering if they will sue within 6 months from today? So by Jan. 1st 2024.
If so, do you know the best route of postponing the actual court date? I might be able to come up with some money by next year to settle, or be able to file bankruptcy by then.
Thoughts?
Thanks! 🙂
You have collection lawsuit risks galore among that list of creditors. When they will file varies, but the risk begins with collection attorney placement. Among your list, only Amex has a history of sending to collection law firms earlier than around 6 months late. That does not mean they will, just that we see them as early as a couple months.
If you are hoping to delay the outcome of a collection action in the court, in order to reach the point you can file chapter 7, you would typically look to defend the suit. In some states you can get many months of time participating in the court process, whereas others you may only be able to delay a couple months. Small claims courts tend to move faster than civil courts, but your balances are likely higher than your states limits for filing in small claims.
The idea with settling is to do so prior to attorney collection placement. Not that you cannot settle when sued. That happens every day. But you could pay double on the settlement (even more), compared to what may have been possible with a proper plan.
Keep in mind we do settlements with long payment plans on many accounts. You do not have to have a lump sum of cash to lock in good deals.
Thank you for the information. I will look at getting in contact with Amex. I am hoping to make it to Jan 1st (11 months since last payment) on all before being sued.
Maybe I can delay charge offs by enrolling in some hardship programs?
What is your timeline for being able to file chapter 7?
I am not sure I’ll be able to file for chapter 7. I am over the median income for the state of montana. I make 78k.
I will definitely try to do chapter 7, but probably have to file chapter 13.
My timeline is to file in 6 months around January 2024.
Do you have an estimate of what your chapter 13 payment would be? Settling debt outside of a chapter 13 could be a better plan, though not if your settlements are going to take too many years.
If you want to walk through a theoretical settlement path given your accounts and cash flow you can schedule a call with me here: https://calendly.com/debtbytes/15min
I have a collection on my credit report with this company however this is not mine. The reported address is my concern as well because it shows an address of my estranged sister . What do you suggest my next steps should be ?
I would first file a credit report dispute. Post an up update with the results of that and we can go from there.
I have been sued by LVNV for a debt and have responded to the lawsuit. Waiting for court date coming up in October however I received a collection letter from Resurgent For the same debt. Am I to respond to Resurgent even though I’m in a pending lawsuit with LVNV is who’s the debt buyer? Wouldn’t Resurgent know that’s there is a lawsuit pending since they collect for LVNV?
Sounds like a system glitch on their end.
If LVNV was to dismiss the case, how long would that take for them to let the court know?
It can vary based on local court rules, and the attorneys handling the case for LVNV.
Hi there! I paid off a smaller debt and noticed they have some from 16 years ago. They are offering to settle for basically 10% of the bill. Will that help me if I pay them being so old? Or will if hurt me? Or is it just throwing money down the drain?
This would typically be viewed as throwing money away. Check out my video about what to do with super old debt.
Hi Michael, I received a settlement offer from Resurgent and in the letter it states “When payment resolving this account is posted, a request will be submitted to the credit reporting agencies within 30 days to delete he tradeline associated with the account.” Is this basically a pay to delete type situation?
Yes, and pay for delete is now normal with Resurgent.
Hey Michael, we spoke recently regarding my delinquent Credit One account which was just bought by Resurgent. I called them today to talk numbers, and their initial settlement offer was for 85% of the balance owed. The representative said the offer would be good for the rest of the month. I said I would have to see how much I could scratch together and get back to them. I am hoping for a 50% settlement or less. I guess I should call them again in about 30 days to see if they can do better? How long can one typically play this game with them before they bring a lawsuit?
I would continue to try to work this out with LVNV by calling at the end of the month, and then again mid month etc.
I cannot really say how long until they sue, but if they have not placed it with a collection agency yet, I tend to expect that first, before attorney placement. At least at the time of this reply.