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Melissa2379 · Posted: Wed Apr 09, 2008 7:29 pm

I was left a card by this legal servicing agency. I called her up and she told me that I am being sued for this bad debt by CitiFinancial. The weird thing is that this debt is old like back in 1997 or 1998. Well, it is not even listed on my credit report but there is an LVNV Funding (Factoring Company) and the balance is not even the same it was a while back..it appears less like 1208.00. Also, it shows it was reopened in 2006! I don't recognize this. Can I be sued?? The lady who is going to come by and give me the papers on Saturday wants to give me time to write a certified letter telling them to stop contact with me and that the debt is out of the statue of limitations. She said the company is in Ozark, Arkansas. I live in Texas. Does anyone know how the law works? I don't want to go to court. I am scared. I was told that I can report them to the FTC. Is this true? I am not familiar with consumer laws. I've been doing research and it seems like my rights have been violated but I want to be sure. I also read that I should ask for validation of debt. I would appreciate any insight. Thank you!

Posted: Wed Apr 09, 2008 8:21 pm

OK, first things first. LVNV Funding is not a factoring company, they are junk debt buyers. They purchase old, mostly time-barred accounts from wherever, for pennies on the dollar or less. Then they try real hard to scare or coerce payment at face value.

Here's a good template for a DV letter: http://www.debtconsolidationcare.com/collection-agencies/better-struct ure.html

Customize it to your situation, and send it out immediately, certified mail, return receipt requested. It may not arrive in time to stop a suit. If you are sued on this, request validation in discovery. Five bucks says they can't validate. That can get the case dismissed.

There are a number of FDCPA violations in what they've sent you. You can sue them for those violations, and recover $1,000 per violation in statutory damages.

Melissa2379 · Posted: Wed Apr 09, 2008 9:13 pm

First off, I would like to thank you on responding. You don't know how scared and nervous I have been. I have been nauseated and just scared out of my wits!!I plan to write the letter but I need the documents first and I won't get them until Saturday. I was told over the phone that it is in JP, a civil suit and that I have 10 days to respond to the creditor. If I ask for validation of debt will the lawsuit come to a halt? I was told that they need to respond within 5 days to verify the information and stop with the court proceedings? Will I most likely have to go to court?

Posted: Thu Apr 10, 2008 3:54 am

Don't sweat JP court. From what I remember [I lived in Texas a long time ago], it's quite informal.

I'm gonna hold off on giving you specific advice on JP procedings. Like I said, it's been decades for me. I have hollered at another member here, who can help you with specifics on that if needed.

The bottom line is this, though. Texas statute of limitations for open accounts [which is what cards are] is four years. You will need to go to court, and raise that as a defense yourself. The judge will not do it for you. That should get the case thrown out. If not, request validation. I believe you can do this right there, at the time, in JP court.

Stay calm. There'll be somebody else along with some more specific answers in just a bit.

Posted: Thu Apr 10, 2008 4:26 am

I'm going to throw down some additional juicy information here.
You said it was listed as open, a factoring company account, and it was opened in 2006. Get a copy of your credit report from each of the 3 major credit reporting agencies. Each of those (open, open date, factoring) violates the following sections of the Fair Credit reporting Act:
1.Violation of § 623A 15 U.S.C. § 1681s-2, knowingly supplying inaccurate information
2.Violation of § 617.[15 U.S.C. § 1681o], negligent noncompliance.
If you can stick them with both of these and the same 3 false entries appear on each credit report then you have them for 18 violations, plus at least one violation of the Fair Debt Collection Practices Act § 807.(5) for filing suit for an action that cannot be legally taken as this is a time barred debt.

You can get this thrown out of court because the Statute of Limitations has certainly passed being 10-11 years since the date or last activity and file a nice counter claim between $10,000-$19,000.

Posted: Thu Apr 10, 2008 4:27 am

If you could answer the following questions for me I can verify if the SOL has indeed expired.

1. What type of account is it?
2. When was the last time you paid on this account?
3. What state do you live in?

ReBorn Rides · Posted: Thu Apr 10, 2008 8:46 am

Do a search on this site for LVNV in Texas. I had a case in JP Court and it went VERY well. LVNV didn't even show up.

Be sure to read the Texas Rules Of Evidence and the Texas Rules Of Civil Procedure regarding affidavits that must be filed by you if you want to bring up certain defenses. Keep in touch with the court clerk to see what has been entered into the file. In my case it was only the original complaint. I guess they didn't have anything else.

JP Court is very informal and you shouldn't be worried.

Posted: Fri Apr 11, 2008 6:38 am

Hi! I live in Texas and as a matter of fact, have a pending lawsuit against LVNV. JP court is just like small claims, except Collectors can’t sue in small claims so they have to use justice court. Don’t sweat it. Now. First you need to call the court and see if there is in fact a case against you. I assume you haven’t been served yet?

Texas has some –nice- consumer laws. You have a good case with the federal, but you also could have them by Texas law as well, since if you demand validation, they have 30 days to comply or they –have- to remove the entry from the credit report. BUT it shouldn’t even be on your credit report since it is –way- over the 7 year mark. This sounds like a classic case of reaging and that is a big no-no!

Texas allows you to demand validation and they have to comply within 30 days or remove the entry from your credit report.

But if they already filed, then DV might be moot at this point so your best bet is to go to court and simply use the 4 year SOL as a defense. So when you get served, be SURE to answer! Use the SOL as a defense. You also want to do discovery, you can serve on them interrogatories (up to 25 questions basically) demanding they produce documentation of this alleged debt. You want to see the original contract signed by you, all statements for the life of the account and bond information! This discovery period is:

(i) 30 days before the date set for trial, or
(ii) nine months after the earlier of the date of the first oral deposition or the due date of the first response to written discovery.

The discovery must be signed and include address and phone number, plus fax if available, otherwise it can be stricken.

LVNV is known for producing ‘affidavits’ that basically say some person has factual information and knowledge about your account. DON’T accept it! Object to it, or better yet, subpoena the signer of the affidavit because it is bogus, no one in the office could possibly have knowledge of this debt since they were not around to witness your signing the papers, or making purchases on a card and so on.

When you get the summons, post some of it here and we can guide you through the whole process. Keep in mind that I have never been sued, this is just what I have learned from my research into Texas state laws and for my own lawsuit against that stupid company.

Posted: Fri Apr 11, 2008 6:47 am

Hmm Is CitiFinancial part of LVNV? They have so many little companies under their umbrella I have no idea. Is it possible that what you have listed on your credit report is something different from what you are being sued for?

Posted: Fri Apr 11, 2008 10:03 am

I know Citi has sold a bunch of accounts [my wife's included] to LVNV. At least, that's what Resurgent claims. Still waiting on validation [

] to find out if they actually own the account.

Guest · Posted: Sun Apr 13, 2008 4:42 am

why did they have to sell the accounts?..couldn't you at least commit to some sort of agreement before screwing up your credit score?

Melissa 2379 · Posted: Mon Apr 14, 2008 4:04 pm

Okay first thing's first. To the guest who said coudn't I have committed to paying them before screwing up my credit score. I did try to work with them through a payment arrangement plan but they wouldn't accept it. They have done nothing but harrass me and I don't need to justify myself to you.

As for the others who have responded, I want to thank you for your responses. I really appreciate it. I have to apologize becaue the LVNV is not the one I thought was suing me, but it is in fact, Citifinancial Services. In fact, I received the documents today by the legal processor I mentioned last week. The company that bought the account is Ozark Capital Corporation and if you are not familiar with them I will give you a bit of history. I found out that they are a fraudluent company who purchases old accounts for pennies on the dollar and they basically try to screw anyone whose account happens to be in the package sold to them. Well, this attorney who works with other supposedly "attorneys" manufacture papers to appear like the real thing or they appear in court but they are 80% of the time unprepared. They are considered scumbags. His name is Hosto and he is some insurance agent but works hard to collect the old debt to get money. He even wants me to pay all of the court costs!! I am not paying one cent. In fact, Citifinancial Services is not on my credit report and I have heard that when the accounts are old they should fall off the report which has happened for this specific account. Does anyone have any idea about what to do here? I have 10 days to respond and I was advised to file for a motion of discovery. I would appreciate any response. Thank you!

Posted: Mon Apr 14, 2008 4:15 pm

Posted: Mon Apr 14, 2008 4:34 pm

Melissa, when was the last time you paid on this account? I have a feeling it's pretty old from what you've said so far. So old in fact that it may be a time barred debt.

Also what state do you live in? With the answers to these two questions I will be able to determine if they are indeed time barred. If so, that alone could be enough to get your case dismissed.

Melissa 2379 · Posted: Mon Apr 14, 2008 5:04 pm

Okay first thing's first. To the guest who said coudn't I have committed to paying them before screwing up my credit score. I did try to work with them through a payment arrangement plan but they wouldn't accept it. They have done nothing but harrass me and I don't need to justify myself to you.

As for the others who have responded, I want to thank you for your responses. I really appreciate it. I have to apologize becaue the LVNV is not the one I thought was suing me, but it is in fact, Citifinancial Services. In fact, I received the documents today by the legal processor I mentioned last week. The company that bought the account is Ozark Capital Corporation and if you are not familiar with them I will give you a bit of history. I found out that they are a fraudluent company who purchases old accounts for pennies on the dollar and they basically try to screw anyone whose account happens to be in the package sold to them. Well, this attorney who works with other supposedly "attorneys" manufacture papers to appear like the real thing or they appear in court but they are 80% of the time unprepared. They are considered scumbags. His name is Hosto and he is some insurance agent but works hard to collect the old debt to get money. He even wants me to pay all of the court costs!! I am not paying one cent. In fact, Citifinancial Services is not on my credit report and I have heard that when the accounts are old they should fall off the report which has happened for this specific account. Does anyone have any idea about what to do here? I have 10 days to respond and I was advised to file for a motion of discovery. I would appreciate any response. Thank you!

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