Lawsuits Accuse LVNV Funding of Illegal Debt Collection Practices

LVNV Funding LLC has been hit with multiple lawsuits in recent weeks over its debt collection practices, which target consumers with credit card debt. The lawsuits accuse the company of violating the Fair Debt Collection Practices Act (FDCPA) by failing to inform third parties when a consumer closes a debt dispute.

LVNV Funding is a debt collection company that buys old credit debt from credit card companies or banks. Like other collections firms, LVNV will buy the debts for pennies on the dollar and then file lawsuits against consumers to collect on the original debt.

In two separate lawsuits filed last week, a pair of Florida residents, Avyatar Alfassi and Eric Weiner, accuse LVNV of communicating false information with third parties by failing to close the existence of the plaintiffs’ dispute with third parties.

The FDCPA prohibits the use of “any false deceptive or misleading representation or means in connection with the collection of any debt.”

What is the Fair Debt Collection Practices Act (FDCPA)?

The FDCPA was passed by Congress in 1978 to combat the unfair debt collection practices used by many creditors and debt collectors. Although debt collection is perfectly legal, the FDCPA has established rules for the collection of consumer debts and provides protections to debtors by enabling them to challenge creditors and determine the validity and accuracy of asserted debts.

Despite these debt collection laws, many debt collectors reportedly engage in illegal conduct in an attempt to collect on debts. If a debt collector is found to have violated the FDCPA, the debtor is entitled to receive $1,000 in statutory damages, plus any actual damages that they have suffered, for each violation.

The plaintiffs are both seeking all actual damages, statutory damages of $1,000.00, and punitive damages for LVNV Funding’s alleged violation of the FDPCA and all reasonable court costs. Both Alfassi and Weiner have demanded jury trials for their cases.

The LVNV Funding FDCPA Debt Collection Lawsuits are Avyatar Alfassi v. LVNV Funding LLC, a Delaware limited liability company, Case No. 0:14-cv-62537 WPD, U.S. District Court, Southern District of Florida and Eric Weiner v. LVNV Funding LLC, a Delaware limited liability company, Case No. 0:14-cv-62535 BB, U.S. District Court, Southern District of Florida.

Join a Free Unfair Debt Collection Class Action Lawsuit Investigation

If a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

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DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.