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Settling Debt with Credit Corp Solutions, Inc.

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Are you receiving phone calls or letters about a debt owed to Credit Corp Solutions, Inc.? If you feel like you’re spinning your wheels and making no progress toward getting rid of your debt, you’re not alone. A lot of people are in the same boat, but there is hope. Settling a debt with Credit Corp Solutions, Inc. can be an excellent strategy to achieve financial freedom.

Who Is Credit Corp Solutions, Inc.?

Credit Corp Solutions, Inc. is a debt buyer. They purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit. Their goal is to buy low and collect high.

Credit Corp Solutions, Inc. is a midsized debt buyer. While not quite as large as entities like LVNV Funding or Midland Credit Management, Inc., it still isn’t uncommon to see their name when you have accounts that fall delinquent.

Credit Corp Solutions, Inc. specializes in unsecured consumer debt, including credit card debt, student loan debt, personal loans, and medical debt. They will occasionally collect on auto loans and commercial debt, too.

Most debt buyers purchase debt and then have third-party debt collection agencies contact the debtor to collect payment. These are companies like Transworld Systems, D & A Associates, Inc., or Radius Global Solutions. Alternatively, they may hire a debt collection law firm such as Zwicker & Associates, P.C., or Mandarich Law Group, LLP.

If you’re receiving calls from any debt collection agency or law firm, it’s a good idea to speak with a debt settlement attorney to discover your rights and strategies to overcome your debt.

Is Credit Corp Solutions, Inc. a Scam?

smart phone with incoming call from unknown caller. concept of s

It’s always wise to be skeptical when someone calls you asking for money. Unfortunately, scams are everywhere, and people in debt are commonly targeted. However, if the caller is genuinely from Credit Corp Solutions, Inc., they are a legitimate company.

You can confirm it is them by putting the number they’re calling from into a search engine. It should bring up the website of Credit Corp Solutions, Inc. When you receive a collection letter from them, check to make sure the contact information matches their website.

Here are a few tips for identifying a fake debt collector:

The caller is unable to provide specific information about the debt.

They should be able to provide the original creditor, the current balance owed, and the last four digits of the account number.

The caller says you are being sued and attempts to scare you into paying immediately.

While debt collection lawsuits are possible, be skeptical of collectors who make claims like, “a representative is on their way to take appropriate action today unless you make a payment right now,” and other vague, but threatening comments.

The caller requests payment through unconventional methods.

Legitimate debt collectors will never request payment through Western Union or that you load a gift card. However, if anything comes up that seems odd, investigate further. There’s a chance there’s something fishy going on.

The caller refuses to send anything in writing.

If you reach an agreement to settle a debt, it’s typical to have a settlement letter to outline the terms of the deal. However, if a debt collection agent is unwilling to send anything in writing, it’s a clear warning sign that something is amiss.

Credit Corp Solutions, Inc. Contact Information

If you have debt owned by Credit Corp Solutions, Inc., it helps to know how to contact them. To obtain confident contact information, you may want to go to the company’s website, your credit report, or the Better Business Bureau.

Below is the contact information for Credit Corp Solutions, Inc.

Mailing address: 180 W Election Rd Ste 200, Draper, UT 84020

Website: http://www.creditcorponline.com

Phone: (800) 483-2361

What Is Debt Settlement?

Debt settlement, also known as debt negotiation, is the process of negotiating with creditors to reduce the amount of alleged debt you owe. This can be done individually, but it typically involves working with a third-party debt settlement company or a debt settlement attorney.

The goal of debt settlement is to get out of debt sooner and at a lower cost than you would if you paid your debt in full. The goal is to resolve your debt for less than the amount owed. When you work with a debt settlement attorney, you’ll be able to learn about your rights and the unique risks you face.

Negotiating a settlement is not for everyone. It’s important to understand the risks involved and how they will impact your credit score before deciding if it’s the right choice.

If you’re struggling to make your minimum payments, have high-interest debt, or can’t afford to pay your debts, debt settlement may be a good option.

Can Credit Corp Solutions, Inc. Sue Consumers?

If you have delinquent debt owned by Credit Corp Solutions, Inc., you may be wondering if the company can sue you to collect the money you owe. The short answer is yes, but there are a few things to keep in mind if you receive a summons from Credit Corp Solutions, Inc.

First, it’s important to understand that most debt buyers prefer to work out payment arrangements to collect a debt rather than go to court.

However, if you do not repay the debt or make an arrangement with the debt buyer, they may sue you  to recover what you owe. If you are sued by Credit Corp Solutions, Inc., it’s important to take the matter seriously. Ignoring the summons leads to a default judgment. National Legal Center offers a free consultation specific to individuals facing lawsuits to discuss your case and determine the best course of action for you.

If Credit Corp Solutions, Inc. has a lawsuit filed with the county, it’s crucial to retain an attorney who is familiar with your rights.

How to Negotiate a Settlement with Credit Corp Collections Agency

woman sitting sofa at home talking on mobile phone

Here are some tips for negotiating a settlement with Credit Corp Solutions, Inc. These suggestions apply to other debt collectors, too!

  • Negotiate a settlement you know you can afford. Don’t over-commit yourself and fail to complete the terms of the arrangement.
  • Obtain a letter outlining the terms of the agreement. It should include the amount to be paid and the payment due date.
  • Follow the letter’s instructions. If the settlement agreement is $4,089.98, pay that, don’t pay $4,090! If it is due by the 28th, paying on the 30th doesn’t cut it—if you need an extension on a settlement, you also need a new letter.
  • Maintain your documents. If the account surfaces in the future, you’ll be glad to have a copy of your settlement letter and proof that you paid it as agreed.
  • Remember that their goal is to collect as much as possible on the debt. Even if you are speaking with an attorney about the debt, they are not your attorney, and you should not expect them to provide legal advice that actually helps you.

How Can a Debt Settlement Attorney Help?

Receiving a summons on a debt you owe to Credit Corp Solutions, Inc. is a serious legal matter. It can lead to a judgment, wage garnishment, a lien against your home, and more. Your best move is to consider hiring a debt relief lawyer to help protect your rights and ensure you aren’t taken advantage of or make a mistake during the legal proceedings.

If you decide to work with an attorney, they will likely look at your entire financial situation and work to find a resolution that is affordable for you and minimize your legal risks. They may also identify alternate legal strategies to deal with the debt.

Did you know a debt settlement attorney can help even if you’re not facing a lawsuit?

You don’t have to wait until you receive a debt collection summons to begin working on a solution. By working with a lawyer familiar with debt-related matters, you can minimize the chances of a debt collection lawsuit happening in the first place.

Debt settlement attorneys may be familiar with the bankruptcy code, but they’ll usually pursue non-bankruptcy alternatives such as negotiating settlements with the creditors.

Your Rights When Dealing with a Debt Collection Agency Collecting for Credit Corp Solutions, Inc.

There are several laws that aim to protect consumers from unfair collection tactics. The most prominent is the Fair Debt Collection Practices Act (FDCPA).

The FDCPA regulates how debt collectors and collection agencies attempt to collect on debt from consumers. Among other things, it dictates when and how often a collector can call, prevents them from using explicit language, and more. The FDCPA states that debt collection companies may not state that they are going to take any action that they don’t actually intend to pursue and have the capacity to pursue.

This means that a debt collector cannot say they will have someone sent to your door with a lawsuit unless they intend to have someone come to your door with a summons.

This is where language becomes very important.

Here are two statements that a debt collector might make. In one scenario, the collector is making an empty threat. In the other, they’re really preparing up for a lawsuit.

Can you tell which is which?

“If you don’t enter into a monthly payment plan by the end of the month, I may have no choice but to consider sending your file to the attorney for review.”

“If you don’t enter into a monthly payment plan by the end of the month, the attorney will take legal action.”

As you can see, the first statement uses vague language, while the second statement is more direct.

“I may,” “review,” “for consideration,” and “potential,” are all words that collection agents will use to cover their bases and keep their collection agency out of trouble. They probably don’t intend to file a lawsuit when they use this language.

If you had a debt collector from a law firm say they intend to take legal action, take it seriously. If they used vague, waiver-like language, you might have more time.

If you understand the regulations surrounding collection agencies and law firms that collect delinquent accounts, it’ll be easier to know if their threat of legal action is real or simply meant as a scare tactic.

National Legal Center negotiates with collection agencies and debt buyers regularly. Complete this short form to discover options to deal with a summons from Credit Corp Solutions, Inc. and any other creditors you may have.

If you’re tired of struggling with debt owed to Credit Corp Solutions, Inc., you’ve got options. Call today and let National Legal Center help you #standuptodebt once and for all.

Are you struggling with debt? Use the form below to get in touch with us.

Struggling with debt? There ARE options. Request a free consultation today!

Person looking at a computer - debt

What to Do When You Can’t Pay a Merchant Cash Advance from Blursoft

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Merchant cash advances (MCAs) can seem like a lifesaver for small businesses in a bind. MCA providers like Blursoft, Credibly, and Reliant Funding provide businesses with a lump sum cash injection. The business then repays the advance with a predetermined percentage of their debit and credit card sales. This business financing solution is utilized by early start-ups or small business owners who would be unable to qualify elsewhere, potentially due to a bad credit score rating or unstable revenue.

MCAs are known to have very high fees and often lead the borrower into an unending cycle of debt. In fact, many people and regulators believe the practice should be banned. BUT proponents of MCA’s believe they serve a very real purpose by helping businesses (usually struggling businesses, to be specific) obtain the funding needed to keep the operation alive. They wouldn’t meet traditional lenders underwriting criteria, leaving MCA providers the only viable option.

Let’s take a closer look at this unique business financing solution and what to do when you can’t foot the bill.

What to Do When You Can’t Pay a Merchant Cash Advance from Blursoft

What is a Merchant Cash Advance?

A merchant cash advance, or MCA, provides businesses with access to a lump sum of cash in exchange for a percentage of their future sales. A merchant cash advance is not technically a loan. Rather than a financing agreement, the provider purchases a portion of the business’s future debit and credit card sales for a certain period of time.

Here’s how it works:

A+ Construction Co is six weeks into an 8-week project. Half of the project was funded upfront to cover labor and materials, and the other half is due upon delivery. Five weeks into the project, they hit a gas pipe, and the repair put them $8,000 over budget. This is fine, but the cost left the business owner struggling to cover payroll. They need funding to help them navigate the next two weeks until the project is complete. Since they can’t qualify for a traditional business loan, they reach out to companies that offer business cash advances like Blursoft, Credibly, and Reliant Funding to get the funds to meet payroll. After reviewing the available options, A+ Construction Co decides to get an advance of $10,000 with a 20% holdback. This means that for the next eight weeks, instead of keeping all of their credit and debit card sales, the vendor will take 20% of each sale until they’ve recouped the $10,000 they advanced to A+ Construction Co.

That’s not considering the fee, of course.

In addition to the initial advance, the MCA provider will also charge a fee for the transaction. This fee is usually expressed as a factor rate. For example, if A+ Construction Co gets an advance of $10,000 and pays back 20% of their sales with a 1.35-factor rate, they will pay back about $13,500 by the end of the eight weeks.

The biggest downside to merchant cash advances is that they are very expensive. The fees and repayment terms can translate to rates as high as 350%, which quickly turn what was meant to be a short-term solution into a long-term financial burden. Factor in the risks of a restrictive loan application process and contract, and the MCA proves to be a very risky and expensive form of business funding.

Also, unlike normal credit cards or personal loans, these types of agreements are usually not considered consumer debt. This means federal laws protecting consumers do not usually apply and the collection tactics can be more aggressive than they are with personal or consumer debts.

People looking at computer - debt

What’s in a Name?

When discussing merchant cash advances, we’re talking about an advance of money. As we shared before, they aren’t issuing a loan. Instead, they’re purchasing future sales. If that feels like wordplay, that’s because it is. This creative compliance allows the MCA provider to avoid licensing requirements faced by lenders. For the most part, MCA providers are not lenders, and a merchant cash advance is not a loan.

However

People say what people say.

Several other terms for business “loans” fall under this same umbrella. You may also hear of this approach to business financing referred to as:

business cash advance

business advance loan

business cash loan

business payday loans

vendor cash loan

merchant payday loans

vendor advance loan

small business loan

merchant advance loan

What happens if I can’t pay a merchant cash advance (Blursoft and other vendors)?

If you cannot make payments on your merchant cash advance, you risk several consequences. These can include penalties and fees from the provider, damage to your credit score, seizure of business assets, and legal action, to name a few.

Advances tend to have tense payment deadlines and high-interest rates, so it is essential to carefully consider your options before committing to one.

If you are struggling with your merchant cash advance or are struggling to make payments, there are several steps you can take. These can include exploring other financing solutions (ideally other conventional forms), negotiating with the provider for more favorable terms, or restructuring your business’s budget to accommodate the requirements of your advance.

If you’re still unable to get and stay current, it’s important to seek advice and guidance from a business debt settlement attorney. Do this as soon as possible to assess your business’s risk and find a solution that works for both you and your business.

Work With a Business Debt Settlement Attorney at National Legal Center

If you are struggling with a merchant cash advance or other debt, the experienced business debt settlement attorneys at National Legal Center can help. Our team works with lenders, creditors, and MCA providers to negotiate more favorable terms for your business and find solutions that fit your unique needs. Contact us today to learn more.

Struggling with debt? There ARE options. Request a free consultation today!

Settling Debt with Portfolio Recovery Associates

Settling Debt with Portfolio Recovery Associates, LLC

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If you’re among the millions of people who have received a debt collection letter or are being sued by Portfolio Recovery Associates, LLC, you’ve probably got a few questions hitting you all at once.

Is Portfolio Recovery Associates suing me?

Wait, who is Portfolio Recovery Associates, LLC?

Can I settle a debt with Portfolio Recovery Associates, LLC?

In this article, we’ll answer all those questions and more. We’ll explain the relationship between Portfolio Recovery Associates, LLC and companies like Credit One Bank, Resurgent Capital Services, and Credit Control, LLC. Then, we’re going to explore your options and touch on dealing with debt collectors in general. So, read on for all the information you need to know about settling debt with Portfolio Recovery Associates, LLC. and their affiliated companies.

Tired of dealing with debt alone? We’ll help you #standuptodebt. Request your free consultation. 

Settling Debt with Portfolio Recovery Associates

Who Is Portfolio Recovery Associates, LLC?

Portfolio Recovery Associates, LLC is a debt buyer. That means they purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit. So, naturally, their goal is to buy low and collect high.

Portfolio Recovery Associates, LLC is one of the largest debt buyers in the United States, so it isn’t uncommon to see their name when you have accounts fall behind and go to collections.

Once Portfolio Recovery Associates has acquired a debt, they have a few options that they can exercise right away or in the future. To name a few, they may:

  • Collect on the debt directly
  • Hire a third-party collection agency to pursue collections
  • Place the account with a law firm for collection and/or litigation
  • Do nothing
  • Resell the account to a different debt buyer

Is Portfolio Recovery Associates a Legitimate Debt Collection Company?

Yes, Portfolio Recovery Associates is a legitimate company. In fact, Portfolio Recovery Associates, LLC is one of the largest debt buyers in the United States. Portfolio Recovery Associates, LLC is a subsidiary of PRA Group, Inc. A previous iteration of the company was Portfolio Recovery Associates, Inc.

Just because they are a legitimate organization doesn’t mean you should let your guard down, though. We are a consumer rights law firm, and we encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. The scammers of the world are known to piggyback off of other companies.

Double and triple-check to be sure you are truly communicating with the real Portfolio Recovery Associates, LLC before providing any personal information and falling prey to a scam. If it truly is a call, letter, or lawsuit from Portfolio Recovery Associates, LLC, they are indeed a legitimate debt buyer.

What Is the Relationship between Portfolio Recovery Associates, LLC and PRA Group, Inc.?

There are several entities working within the PRA-ecosystem. For example, when you have a debt that has been purchased by Portfolio Recovery Associates, LLC, you may also see PRA Group, Inc., or PRA Receivables Management, LLC.

With all these companies intertwined, it can get a bit tricky.

Rather than untangle the corporate web behind Portfolio Recovery Associates, LLC, suffice it to say that PRA is a debt buyer who also acts as its own debt collector.

Their various subsidiaries each play a role in their business processes. All have a deviation of the core “PRA” within their names and, for the most part, you’ll primarily see Portfolio Recovery Associates, LLC and PRA Group, Inc.

What Is the Relationship between Portfolio Recovery Associates, LLC, Credit One Bank, and Other Creditors?

Settling Debt with Portfolio Recovery Associates, LLC

Portfolio Recovery Associates, LLC purchases unpaid debt from lenders like Credit One Bank, SoFi, and others.

Once a debt has been purchased by Portfolio Recovery Associates, LLC, it is their right to try to collect on that debt. The original creditor no longer owns the debt, and all communication regarding the account will take place between you (or your debt settlement attorney) and the new owner of the debt or their collector.

Why Is Portfolio Recovery Associates, LLC on My Credit Report?

When Portfolio Recovery Associates, LLC becomes the new owner of your debt, their name will often appear on your credit report alongside the collection account. Their remarks may include their contact information, how long the account will remain on your credit report, and the account status, such as unpaid, paid in full, or settled.

Under the Fair Credit Reporting Act, they are able and expected to report accurate and verifiable information. If it is not accurate, if they cannot verify the information, or if it is not a valid debt, you may be able to remove Portfolio Recovery Associates, LLC from your credit report by disputing the remark. You’ll want to ensure the error is corrected with each of the three credit reporting agencies: Transunion, Experian, and Equifax.

One special thing about Portfolio Recovery Associates and credit reports, right now they have a business policy of asking the credit bureaus to delete any tradelines of resolved accounts from the consumer’s credit report. This means for the time being, once an account is settled PRA will remove their name and account history from the credit file. A business policy is not required, the law does not require this deletion. It does nothing to the original creditor’s tradeline. The policy could change tomorrow, there is no guarantee that they will continue to delete accounts after resolution, but of course we hope that they will!

What Should I Do If I Receive a Letter or Call from Portfolio Recovery Associates, LLC?

If you’re receiving calls or letters from a debt collector at Portfolio Recovery Associates, LLC or PRA Group, Inc., there are actions you can take and rights that protect you as a consumer in debt.

First, read the Attorney’s Guide to Reading a Collection Letter. This will explain the core elements of the letter you received and the laws that collection agencies need to follow when sending letters about collection accounts.

Then, determine your next steps.

Are you sure you owe the alleged debt to Portfolio Recovery Associates, LLC? If not, you might consider sending a debt validation letter. With a bit of research and legwork, you can attempt to do this on your own. If you’d like a free consultation with a law firm familiar with disputing debts, contact our team here at National Legal Center.

If you are sure the debt is valid, can you afford a payment plan to resolve or settle the account? Make sure any arrangement is affordable and doesn’t leave you falling behind on other obligations.

National Legal Center negotiates with companies like Portfolio Recovery Associates, LLC, every day. Complete this short form to discover options to resolve debt with Portfolio Recovery Associates, LLC, and any other creditors you may have on your credit reports.

Is Portfolio Recovery Associates, LLC a Debt Collection Agency?

Yes and no. PRA is a debt buyer. They purchase debt, and then they have their debt collectors call in an attempt to collect the debt. The fact that they own the debt does raise questions on whether they are technically a debt collection agency. The title of being a “debt collector” brings along many requirements under the FDCPA.

If you feel you’ve been harassed or like your rights have been violated by debt collection companies, National Legal Center is here to help.

Can Portfolio Recovery Associates, LLC Sue Me?

Settling Debt with Portfolio Recovery Associates, LLC

Yes, Portfolio Recovery Associates, LLC may be able to sue you for the debt you owe. A debt collection lawsuit can be a frightening experience that you should take seriously. If Portfolio Recovery Associates, LLC sues you, it is important to seek legal assistance as soon as possible.

Failing to respond to a summons can result in a default judgment being entered against you. At that point, you’re susceptible to having wages garnished, money taken from your bank account, seizure of personal assets, and more.

National Legal Center offers a unique consultation specific to individuals facing lawsuits to discuss your case and determine the best course of action for you.

Should You Negotiate a Settlement with Portfolio Recovery Associates, LLC?

When Portfolio Recovery Associates, LLC is contacting you about a debt, negotiating a settlement is one option to resolve the debt.

A settlement is where you pay less than the total amount owed on the debt, either in a lump sum or over several monthly payments. Once you pay Portfolio Recovery Associates, LLC, the account is reported to the credit bureaus as settled in full (or similar), and they should not take further action.

If Portfolio Recovery Associates, LLC has filed a debt collection lawsuit, and you’re considering settlement, things change a bit. Of specific importance is the timing of the settlement.

For example, if the settlement occurs after Portfolio Recovery Associates, LLC issued a summons, you’ll want to make sure you know whether the court hearing was canceled. If not, you may still be expected to appear in court, even if only to share the details of the settlement.

If you settle a Portfolio Recovery Associates, LLC lawsuit after a judgment was entered, you’ll want to have documentation that confirms they will file a satisfaction of judgment with the court.

While you can ask the representative at whatever law firm is handling the matter for Portfolio Recovery Associates, LLC, it’s crucial to remember that they are not your attorneys!

Instead, they represent the other party, so it’s good to be skeptical and confirm anything they tell you. After all, their job is to collect the most funds possible on the accounts they handle.

Negotiating a settlement is an excellent way to resolve a debt. Just make sure to cross your t’s and dot your i’s.

Tips for Negotiating a Settlement with Portfolio Recovery Associates, LLC

Here are some tips for negotiating a settlement with Portfolio Recovery Associates, LLC, or any other debt collection agencies:

  • Negotiate a settlement you know you can afford. Don’t over-commit yourself and fail to complete the terms of the arrangement.
  • Obtain a letter outlining the terms of the agreement, including the amount to be paid and the payment due date.
  • Follow the letter’s instructions. If the settlement agreement is $4,089.98, pay that, don’t pay $4,090! If it is due by the 28th, paying on the 30th doesn’t cut it—if you need an extension on a settlement, you also need a new letter.
  • Maintain your documents. If the account surfaces in the future, you’ll be glad to have a copy of your settlement letter and proof that you paid it as agreed.

How Can a Debt Settlement Attorney Help?

Receiving a summons on a debt you owe to PRA is a serious legal matter. It can lead to a judgment, wage garnishment, a lien against your home, and more. Your best move is to consider hiring a debt relief lawyer to help protect your rights and ensure you aren’t taken advantage of or make mistakes during legal proceedings.

If you decide to work with an attorney, they’ll likely look at your entire financial situation and work to find an affordable resolution for you and minimize your legal risks. They may also identify alternate legal strategies to deal with the debt.

Did you know a debt settlement attorney can help even if you’re not facing a lawsuit?

You don’t have to wait until you receive a debt collection summons to begin working on a solution. By working with a lawyer familiar with debt-related matters, you can minimize the chances of a debt collection lawsuit happening in the first place.

Can the Fair Debt Collection Practices Act Help with a Debt Collection Lawsuit?

Struggling with debt? There ARE options. Request a free consultation today!

How to afford living alone on a fixed income

How to Afford Living Alone on a Fixed Income

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Amid massive inflation and increasing housing expenses, many people can’t afford to live alone on a fixed income. If you’re a senior or a person with disabilities and rely on a fixed income, affording to live alone can seem impossible. But, with some creativity and planning, it’s possible.

You have unique concerns and considerations. You also have unique opportunities and financial strategies available to you. We’ll be looking at all that and more as we explore all the aspects of living alone on a fixed income.

Money Management Is Different on a Fixed Income

Fixed income written in a note.

Managing finances can be a challenging task. It requires careful planning, number crunching, and disciplined spending to stay within your budget. However, managing your finances is especially unique if you live on a fixed income. You usually need to stretch your dollars further and don’t have as much wiggle room or opportunity to increase income.

There are a few key money management tips that are especially important to people living on a fixed income:

Create a budget and stick to it.

Your budget is the foundation of your finances. It tracks income and expenses and gives every dollar a job. When you’re on a fixed income, it’s even more important to track your spending and account for every penny.

Review and reduce expenses regularly.

It’s critical to track your spending and regularly review your expenses so you can make changes where necessary. If you can’t afford to live on your current budget, it’s time to make some changes.

Always be vigilant of scams that target seniors.

Did you know that financial abuse may be costing seniors over $36 billion per year? Constant vigilance is necessary to avoid scams. From holiday scams and romance scams to imposter scams and identity theft, there’s no shortage of creativity when it comes to stealing money.

Make use of local and government programs.

A little bit of help can go a long way. There are several government programs available to seniors and people with disabilities. Some states offer supplementary income beyond SSI and SSDI. Nonprofit organizations can assist with food expenses and housing. Low-cost legal services are available through National Legal Center and Legal Aid.

Keep someone in the loop.

When living alone and managing finances on a fixed income, it’s important to bring someone else into the conversation.

It can be difficult to ask for help with managing finances. However, discussing your finances with someone you trust can make living alone on a fixed income possible. It goes beyond just having a second set of eyes looking over your money. It is invaluable to have a partner to brainstorm financial strategies with, monitor signs of fraud, and keep you accountable for your spending habits and savings goals.

Are you a family member or caregiver who helps someone with their finances? Get your free e-book: “How to Talk to Seniors about Finances.”

Emphasize your emergency fund.

Living on a fixed income can be unpredictable. Your monthly budget may be fine, but you could quickly find yourself in trouble if an unexpected expense pops up. That’s why it’s important to have an emergency fund that covers at least three to six months of your regular expenses.

How to Afford Living Alone on a Fixed Income

The Current Rental Situation in America

It’s no secret that housing expenses are on the rise. Unfortunately, that and inflation seem to be the talk of the town!

Rent.com recently published a powerful study that looks into the cost of rent across the country. The study reviewed ninety-seven different markets to compile a confident data set. According to the study, 97.7% of real estate markets saw an average increase in rental rates of 24.4% for one-bedroom apartments. One hundred percent of real estate markets saw an increase in rental rates for two-bedroom apartments, with a national average increase of 21.8%. That’s a lot of money to spend on rent, especially if you’re living on a fixed income!

  • The average rent across the country for a one-bedroom apartment is $1,684.
  • The average rent across the country for a two-bedroom apartment is $1,997.
  • The most affordable markets for a one-bedroom apartment are Montgomery, Alabama, at an average of $676 per month, and Toledo, Ohio, at $732 per month.
  • The most expensive markets for a one-bedroom apartment are Jersey City, NJ, at an average of $3,757 per month, and Boston, MA, at $3,664 per month.

What may be more concerning is that this high cost of rent is pushing people out of their homes and into suburban and rural areas. The suburbs and rural America have always been seen as more affordable options. With the current state of affairs, though, that’s not always the case.

How Much Rent Can You Afford When Living on a Fixed Income?

This answer largely depends on your unique financial situation. However, you can do a few things to get an idea of how much rent you can afford.

One option is to calculate your total monthly income and subtract all your regular monthly expenses. This will give you an idea of how much money you have left each month to put towards rent.

Another option is to follow the 30% rule to determine housing costs. Financial experts have often said that you should spend no more than 30% of your income on housing. Considering that the average SSI benefit is $1,657 per month, this would leave around $500 per month to allocate toward an apartment or house expense. Not very easy given the state of rental costs in our nation today.

How to afford living alone on a fixed income

Security Deposits, Utility Bills, and Other Expenses to Expect When First Living Alone

You should expect some additional costs when living by yourself for the first time. For example, you’ll likely have to pay for your utilities, internet, and cable, which can easily add an extra $100 or more to your monthly expenses. If you like to cook at home, be prepared to spend a bit more on groceries than when you were splitting them with someone else. This is especially true in the beginning, as you’ll need to stock up on staples and essentials.

Here are some common expenses when first living on your own:

  • Security deposit
  • First and last month’s rent
  • Pet deposit (if applicable)
  • Utility bills and deposits, depending on credit
  • Cable/internet/phone installation fees
  • Renter’s insurance
  • Groceries
  • Household supplies (toilet paper, detergent, etc.)
  • Furniture (dining table, bed, couch)
  • Moving expenses (packing supplies, moving truck rental, etc.)

Create a Budget to Afford Living Alone on a Fixed Income

One of the best ways to afford living on your own is to create a budget. When you create a budget, you’ll see how much money you have coming in and going out. This will help you determine what you can afford to spend on rent and other living expenses.

Several online tools and apps exist that can help you create a budget. These tools often ask for information about your monthly income and expenses. They then provide a breakdown of where your money is going and offer tips on saving more money. Budgeting apps are excellent for those who prefer to use technology to manage their finances.

If you’re not comfortable creating a budget online, you can also do it the old-fashioned way—with a pen and paper. Start by listing your monthly income from all sources. Next, list your monthly expenses, such as rent, utilities, groceries, transportation, and debt payments. Finally, list any one-time expenses you may have in the upcoming month, such as car repairs or holiday gifts.

Once you have your budget created, find where you can make cuts. For example, can you reduce your cable bill or car insurance? Can you cook more meals at home instead of eating out? Can you find cheaper ways to get around town? If so, put that money aside to pad your emergency fund or put it toward your monthly rent.

If your goal is to live alone, you should build your budget around that goal. First, focus on ensuring that you have enough money to confidently live alone. Does your income support the cost of living alone? If not, what monthly expenses can you reduce?

Will you need to earn more money to afford to pay rent on your own? What options do you have for earning income beyond social security? Considering these items when creating a budget can help you live on your own without relying on help from others to meet your financial responsibilities.

How to afford living on a fixed income alone

Increase Income and Save Money to Afford Living Alone

If you’re not quite ready to live on your own, or if you need to save up some money before making the jump, there are a few things you can do to increase your savings. While the budget you’ve created will help your financial stability, you’ll want emergency savings that you can rely on. When you have a savings cushion, you’ll be less likely to stress about monthly bills and unexpected expenses.

One way to increase your savings is to make small tweaks to your budget. For example, if you can find ways to cut back on your spending by even $10 a month, you can save an extra $120 over a year. You can also automate your finances, automatically transferring money into savings every month. This way, you won’t have to worry about forgetting to save or accidentally spending your entire paycheck.

Another way to increase your savings is to take on a side hustle. A side hustle is a job or project that you do in addition to your regular job. It is usually less formal than traditional part-time employment. Your side hustle can be anything from dog walking to freelance writing. Whatever you choose to do, the important thing is that it brings in extra money each month.

Several websites can help you find side hustles. Here are three resources worth considering that can help you earn extra money each month:

  • Uber.com is a website that connects drivers with people who need a ride.
  • Fiverr.com is a website where you can offer services starting at $5.
  • TaskRabbit.com is a website that connects people who need tasks done by people who are willing to do them for a price.

Our world is more connected than ever, and we have seemingly endless ways to find supplemental income. If you’re determined to live alone, finding ways to bring in more money each month is crucial in making that happen. Just be careful to consider your earning limitations when you receive SSI.

Be Cautious with Debt and Credit Cards

Living alone can be expensive, and if you’re not careful, it’s easy to fall into debt. Credit card companies are experts at getting people to spend more than they can afford. Before you know it, you’ve racked up thousands of dollars in debt that you’ll need to pay back with interest.

The best way to avoid credit card debt is to not have a credit card in the first place. If that’s not an option for you, be careful about how much you charge each month. Make a plan for how you will pay off your balance each month, so you’re never carrying a balance from one month to the next. This is also helpful for your credit rating. Keeping your balances low is an important factor in overall credit health.

If you’re already in debt, there are several things you can do to get out. One method is to create a debt repayment plan. This plan outlines how much money you will put towards your debt each month and how long it will take you to pay it off. Having a concrete plan will help you stay motivated and on track.

You can also speak with our team at National Legal Center about options to help you deal with debt. Our law firm offers several approaches to help people overcome financial struggles without bankruptcy, including low-cost options specifically designed for individuals on a fixed income.

How to afford living on a fixed income alone

Be Frugal, Live Well

One of the best ways to manage finances on a fixed income is to live frugally. This doesn’t mean you have to forgo all the things you love. It just means finding ways to enjoy life without breaking the bank.

Here are a few tips for living frugally and living well:

Cook at Home

It can be tricky to cook for one, so people who live alone tend to eat out more often. But, eating out is expensive, typically more difficult to keep healthy, and it’s easy to overspend on food. When you cook at home, you can control the ingredients, the portion size, and the cost. Enjoy these tips from a Registered Dietitian who lives alone about cooking for one.

Shop Second-Hand

There are several ways to save money by shopping second-hand. From clothing to furniture to appliances, shopping used can save you a lot of money. Don’t hesitate to purchase gifts second-hand, too. The holiday season can be hard on anyone’s budget, but that’s especially true for those who live alone on a fixed income. Items at thrift stores range from well-used to new-in-box.

Join a Club or Group

One way to have fun and save money is to join a club, group, or senior center. Though some require membership fees, others can be entirely free of charge. These organizations often offer free activities or have discounted rates for members. You can also take advantage of group discounts on travel, entertainment, and more.

Be Creative with Your Leisure Time

There are many free things to do in your community and beyond. Get creative with how you spend your leisure time. Explore your city (visitors centers are a great resource to find local attractions, and often offer discounts, too!), take nature walks, visit the library, or take up a new hobby. The more you do things on your own terms, the less you’ll rely on spending money.

Embrace Your Public Library

One of the best things about living alone on a fixed income is that you have more time to explore the truly important things to you. Embrace this “you time” by exploring your interests and finding new ways to entertain yourself. One of the best ways to do this is visiting your local public library. Libraries offer a wide variety of free activities, from book clubs and music lessons to seminars and social gatherings. You can borrow books, games, DVDs, and CDs. Some libraries even have culture passes that allow you to access a local attraction like a zoo or museum at no cost.

Living alone on a fixed income can be difficult, but it’s not impossible. With a few tweaks to your budget and some creative strategies, you can make living on your own reality.

How to afford to live alone on a fixed income

What to Do When You Can’t Afford to Live Alone on a Fixed Income

So what can you do if you want to live alone but can’t afford to pay the high rent prices? Well, there are a few things you can do:

Rent a Room (Occasionally)

Suppose you have some extra space and are not opposed to an occasional house guest, renting a room now and then is a great way to save on rent money. Platforms like Airbnb allow people to rent entire houses or even just a couch for a few nights to travelers looking for a place to stay.

Move to a Less Expensive Area

If you’re willing to relocate, you may find it easier to live in a less expensive market. Rent.com‘s study found that the most affordable markets for a one-bedroom apartment are Montgomery, Alabama, and Toledo, Ohio. However, that doesn’t mean you need to uproot and move across the country. Your current area may even have neighborhoods that can be much more affordable than others. A real estate agent familiar with your local area will be a valuable person to speak with.

Rent a Room (Always)

If you’re not comfortable having a stranger stay with you occasionally, rent a room long-term to someone you know. Having a roommate may mean you don’t have your own apartment, but when you pay only half the expense, it can be worth sharing space to save the extra money.

Live with Family or Friends for a Few Months

Don’t worry, we aren’t going to give up the idea of living alone entirely!

Suppose your financial situation doesn’t allow for single living yet. In that case, you might consider living with family or friends for a few months. You may need to contribute financially to living with others, so make sure you talk openly about finances before making any agreements. However, living with family or friends may allow you to save the money needed to get your own place.

Get Your Own Place (Occasionally)

Let’s say getting a place of your own is not financially feasible. You still can’t quite make the numbers work even with building a budget, reducing expenses, and getting a side gig. In that case, maybe you can get your own place on occasion. Rent a room at a local hotel for a week. Put the money toward a vacation just for you. By recharging from time to time, you may increase your quality of life while avoiding the major expense of renting your own apartment.

How to afford to live alone on a fixed income

Laws May Protect Your Fixed Income

In addition to good money management, it also helps to be aware of the laws that protect you and your income. For example, suppose you were to fall behind on your credit cards or other monthly bills. In that case, you could certainly face some consequences, but did you know that federal law protects Social Security income? Non-government entities cannot garnish it. If you manage your money carefully, you can also prevent protected income from being levied, or taken, from your bank account by a judgment creditor.

We don’t want you to fall behind on your bills, but if you’ve already fallen behind or are going to fall behind soon, it’s crucial to know how to best protect your income.

For additional information on protecting your income and assets when you’re on a fixed income, reach out to National Legal Center. Our knowledgeable attorneys can help you through your unique situation.

In Summary

Living alone on a fixed income can be difficult, but it’s not impossible. With some creative thinking and financial planning, you can find ways to make it work for you.

When you do make it out on your own, it’s important to enjoy your newfound freedom. It’s also crucial to be smart about your finances. Follow the suggestions we shared earlier about ways to save money and increase your net income while on a fixed income. Monitor your statements and be on the lookout for fraud and scams. Do all this, and you’ll be living comfortably in no time!

If you’re living on a fixed income and are struggling to keep up with your bills, reach out to National Legal Center for assistance. Our experienced debt relief attorneys can help you create a plan that will provide relief from your debt. Don’t suffer in silence – call us today!

Struggling with debt? There ARE options. Request a free consultation today!

Talking to debt collector

Best Tips for Speaking with Debt Collectors

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Debt collectors have a reputation for being intimidating, uncaring, and unethical. While that may be the case for some, this is a great example where the extreme minority cast a shadow over the majority. In many ways, debt collectors and the debt collection agencies that employ them have earned their reputation. Still, most individuals in the Account Receivables Management (ARM) industry are genuinely good people.

If you are in a situation where you need to deal with a debt collector, our team of expert professional negotiators is here to share their wisdom and help you.

Debt settlement companies will often infer that a consumer cannot negotiate with debt collectors directly. This is not true! DIY debt settlement is possible, though we do recommend working with a reputable state-licensed debt settlement attorney near you to ensure that the debt settlement agreement is honored.

Would you rather not negotiate with debt collectors directly? We’ve got you.

National Legal Center has helped thousands of people #StandUpToDebt, and we’re at the ready for you, too.

Woman on the phone talking to debt collector

When to Use These Tips for Settling with a Debt Collector

Note that the following suggestions should work for just about any type of debt you are attempting to settle. While we’ll get into some technicalities, these strategies are more ‘soft’ negotiation skills. They can be utilized for unsecured debt, like credit cards and medical debt, and with any type of collector, whether it be an original creditor, collection agencies, or debt collection law firms.

Kindness Gets You Farther than Being Rude

Lisa Fuerstenberg, a 13-year debt negotiation veteran, suggests kindness. “I remind myself that they have a job to do also, and that kindness gets you farther than being rude.”

This spectacular suggestion goes far beyond just dealing with debt collectors. We can apply this throughout life! 

It’s true: a debt collector is more likely to work with you if they feel that you are reasonable and cooperative. This isn’t to say you need to become their best friend (but hey, why not?) and share a ton of information with them, but civility and kindness go a long way.

A debt collector’s job is to collect on the debt. That’s how they put food on the table and keep a roof over their head. Yes, sometimes some collectors will resort to bullying tactics and other unfair methods to collect. If you believe a collector is violating your rights, our consumer rights attorneys can help turn the tables and take action against them. However, the past 15 years have brought about a significant shift, and debt collection agencies seem to be attempting to clean up their act.

Collection agencies have also realized that kindness is more effective in collecting debt. You’ll probably be treated with respect more often than not, especially if you show respect to them.

Walk Away from the Phone

If you’re feeling overwhelmed or panicked, sometimes the best thing you can do is take a break by stepping away from the phone. Don’t worry. You’re not abandoning the negotiation —you’re just taking a break.

“I’m sorry, I need to put you on hold for a moment,” is a perfectly polite and acceptable way to pause a conversation to allow yourself a moment to gain your composure. The pause gives you some time to clear your head, take a few deep breaths, and recall your negotiation goals.

You’re not obligated to stay on the phone with the debt collector if you feel uncomfortable or pressured. This is YOUR negotiation, and you should never feel like you need to do something you’re not comfortable doing.

Treating Debt Collectors Respectfully and Calmly Can Sometimes Work Wonders

Kelsey Holmes, a legal assistant in the debt resolution division of National Legal Center, encourages respect. She shares that “Treating them respectfully and calmly can sometimes work wonders. They’re used to being yelled at, so it’s a relief for them to talk to someone that treats them ‘well’. ”

Kelsey is especially referring to call-center situations that consumers might encounter when calling a phone number found on a debt collection letter. Collectors working for larger collection agencies that deal with a significant volume of inbound and outbound calls will often spend the day being hung up on, cursed at, and belittled. However, when you’re polite and understanding, it can ‘work wonders’ and be a breath of fresh air for a collector. It makes sense that a debt collector who has a reprieve from being beaten down all day might be more willing to go to bat for someone who treats them with respect for a change.

You Share a Common Goal with the Debt Collector

It might not feel like it at times, but you and the debt collector both want the same thing: to resolve the debt. Of course, you want to resolve it for as little as possible, and they want to collect as much as possible. Aside from that, though, you’re ultimately trying to achieve the same big picture goal.

Remembering this can help ease some tension and make the conversation feel more cooperative. Adversarial negotiations aren’t just less comfortable, they’re less successful. A successful negotiation happens when both parties walk away satisfied with the deal. You’re both working towards the same goal, so there’s no need for hostility or hatred.

Bonus Tip: Ignore your credit report.

This can be a real challenge, but skip the part of the call where you ask them to remove the item from your credit report. Contrary to popular internet theory, a debt collector will very rarely have any control over what is or is not reported on your credit report. The company will either systematically update your report or choose to no longer report the account. They cannot misrepresent the debt and, if they continue reporting on your credit report, they are required to update the account to show it has been paid through a settlement agreement and has a $0 balance. Time is money, so a collector will probably appreciate you skipping this part of the conversation.

Stay Calm

Know Your Debt Settlement Numbers before You Negotiate

This negotiation is all about numbers: the amount of debt, the monthly payment, the numbers behind your hardship, etc. So before you even pick up the phone to start negotiating with a debt collector, make sure you know your numbers inside and out. This way, you can confidently discuss payment options without having to stop and do math in your head, making you seem unprepared, an easy target, or divulge information they can use against you.

Some helpful numbers to know before you start negotiating include:

  • The total amount of debt
  • The monthly payment you can afford
  • Any lump sum you can put toward settling the debt
  • Your hardship (unemployment, underemployment, medical bills, etc.)
  • Your monthly income
  • Other debts you owe, including debts like back taxes and child support
  • A detailed breakdown of your monthly expenses
  • How much you would like to settle for
  • How much you can afford to settle the debt for (monthly or in a lump sum)
  • Your state’s statute of limitations on debt collection

If ever there were a time to spend an extra few moments in preparation, this is it! Take the time to write this information down. An additional 30 minutes to gather information can make a tremendous difference in your negotiations, translating to actual financial savings. You can enter into negotiations with confidence and a clear goal in mind by being prepared with these numbers.

Want to know the secret no debt settlement company would want you to know? You can usually get bona fide legal representation for the same cost charged by debt settlement companies. Get a free consultation today!

Know Your Rights under the FDCPA, FCBA, and FCRA

While we suggest respect, kindness, and negotiating with debt collectors as allies instead of enemies, we also want you to keep your guard up. Remember, the industry earned its reputation. There are numerous consumer protection laws enacted by the Federal Trade Commission and other government entities that aim to protect you from unfair activity by any collection agency you might deal with.

Fair Debt Collection Practices Act (FDCPA)

The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits third-party debt collectors from using abusive, unfair, or deceptive practices when they collect debts. This law only applies to third-party debt collectors. First-party creditors, like your credit card company or original lender, do not fall under the FDCPA, though individual states may have laws that do include first-party creditors.

Some actions prohibited under the FDCPA include:

  • Making threatening statements
  • Misrepresenting the debt
  • Using profanity
  • Lying about how the debt will affect the consumer’s credit history
  • Applying debt payments to the wrong account

This comprehensive law was recently updated to include language that discusses when and how a collection agency and its representatives can contact consumers through social media.

Fair Credit Billing Act (FCBA)

The Fair Credit Billing Act (FCBA) is a federal law that protects consumers from unfair billing practices and gives them the right to dispute errors on their credit card bills. This provides consumers with a way to dispute fraudulent or unfair transactions on their statements directly with their credit card issuers.

While in dispute, the consumer is only required to make a partial payment on their card. They are only required to pay on what is known and agreed to be legitimate debt. Then, the consumer will either see the disputed amount waived or they will be responsible for resuming timely payments on the debt if the investigation determines that the disputed transactions are legitimate.

The credit card issuer will be required to cease collection activity while they investigate, respond within a specific time, and may need to make certain written remarks on the consumer’s credit reports.

Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that regulates credit reporting agencies and how they report information about consumers’ credit histories. The FCRA gives consumers the right to know what information is being reported about them, dispute inaccurate information, and have inaccurate or unverifiable information deleted from their credit reports.

When you know your rights, you can be more assertive and confident when speaking with a debt collector. If they are threatening or using any tactics you feel violate your rights under the FDCPA, FCBA, or FCRA, you have options and can take action. Document the violations and contact our firm for a free consultation. Their violations can result in money being awarded to you as damages for the offense.

Reviewing Debt Options

Using Debt Settlement Companies to Negotiate with Debt Collectors

Debt settlement companies have done a great job at marketing their services. They can be very effective in negotiating with debt collectors, but they do charge a significant fee for a process you can technically handle on your own.

If you believe you need help negotiating with debt collection agencies, you will be best served by retaining a debt settlement attorney. The cost of representation is often less than what is charged by debt settlement companies, and a licensed debt settlement attorney near you can also represent you if a debt collection lawsuit or if a debt collector violates your rights.

Sometimes we need help and that’s okay. The important thing is to get the right help for your specific situation. Our team can help you outline your debt priorities, create an affordable payment plan to deal with your unsecured debt, and guide you through the negotiation process every step of the way.

In Summary

While dealing with debt collectors can be stressful, remember to be kind, walk away if you need to, and treat them with the respect they deserve —after all, they’re just doing their job.

If you decide that you don’t want to deal with them, or if the debt collector is being too pushy and doesn’t seem to be following the Fair Debt Collection Practices Act, you should reach out to a qualified debt settlement attorney. National Legal Center offers free consultations and can help you get started on your way to becoming debt-free!

Struggling with debt? There ARE options. Request a free consultation today!

Man on phone - debt collector

Settling Debt with LVNV Funding, LLC

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Key Highlights

 

  • LVNV Funding, LLC is a debt buyer. They purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit 

  • Once a debt has been purchased by LVNV Funding, LLC, they (or their collecting arm, Resurgent Capital Services) try to collect on that debt by sending letters, making phone calls, and filing debt collection lawsuits

  • If you’re receiving calls or letters from a debt collector at LVNV Funding, LLC or Resurgent Capital, there are rights that protect you and actions you can take like settling the debt, disputing the debt, or responding to a LVNV Funding, LLC lawsuit

Tired of debt?

Rise above debt without the hassle of bankruptcy. Request your free consultation below.

 

If you’ve received a letter or lawsuit about a debt owed to LVNV Funding, LLC, you probably some questions.

What is LVNV Funding, LLC?

How do they operate?

Can I settle a debt with LVNV Funding, LLC?

In this article, we’ll answer all those questions and more. We’ll explain the relationship between LVNV Funding, LLC and companies like Credit One Bank, Resurgent Capital Services, and Credit Control, LLC. Then, if you owe them money, we’re going to explore your options and touch on dealing with debt collectors in general. So, read on for all the information you need to know about settling debt with LVNV Funding and their affiliated companies.

Who Is LVNV Funding, LLC?

Smartphone with Incoming Call on Display

LVNV Funding, LLC is a debt buyer. That means they purchase unpaid debts from other companies for a fraction of the amount owed. They then try to collect on those debts to earn a profit. So, naturally, their goal is to buy low and collect high.

LVNV Funding, LLC is one of the largest debt buyers in the United States, so it isn’t uncommon to see their name when you have accounts fall behind and go to collections.

Once LVNV Funding, LLC has acquired a debt, they have a few options that they can exercise right away or in the future. To name a few, they may:

  • Collect on the debt directly
  • Hire a third-party collection agency to pursue collections
  • Place the account with a law firm for collection and/or litigation
  • Do nothing
  • Resell the account to a different debt buyer

One thing to keep in mind is that LVNV Funding, LLC is not a lender and they do not directly collect debts they purchase. Because of this, the collection activities of the consumer facing collecting entity- Resurgent Capital Services- are subject to the Fair Debt Collection Practices Act. The FDCPA is a series of laws that protect consumers from unfair tactics by debt collectors.

Is LVNV Funding, LLC a Legitimate Debt Collection Company?

Yes, LVNV Funding, LLC is a legitimate company. LVNV Funding, LLC is one of the largest debt buyers in America.

Just because they are a legitimate organization doesn’t mean you should let your guard down. We are a consumer rights law firm, and we encourage you to treat any call or letter asking you for money with a healthy amount of skepticism. The scammers of the world are known to piggyback off of other companies. Double and triple-check to be sure you are truly communicating with the real LVNV Funding, LLC before providing any personal information and falling prey to a scam. If it truly is a call, letter, or lawsuit from LVNV Funding, LLC, they are indeed a legitimate debt buyer.

What Is the Relationship between LVNV Funding, LLC, Resurgent Capital Services, and Sherman Financial Group?

Midland Funding LLC

There are several entities working with LVNV Funding owned debts. For example, when you have a debt that has been purchased by LVNV Funding, you may also see Resurgent Capital Services, Sherman Financial Group, or Sherman Acquisitions.

With all these companies intertwined, it can get a bit tricky.

Rather than untangle the corporate web behind LVNV Funding, LLC, suffice it to say that Resurgent Capital is the front-line collection agency, LVNV’s name is on most of the credit reports and paperwork, and Sherman Financial Group and Acquisitions tend to stay behind the scenes.

What Is the Relationship between LVNV Funding, LLC, Credit One Bank, and Other Creditors?

LVNV Funding, LLC purchases unpaid debt from lenders like Credit One Bank, SoFi, and others.

Once a debt has been purchased by LVNV Funding, LLC, it is their right (or that of their collecting arm, Resurgent Capital Services) to try to collect on that debt. The original creditor no longer owns the debt, and all communication regarding the account will take place between you (or your debt settlement attorney) and the new owner of the debt or their collector.

Why is LVNV Funding, LLC on My Credit Report?

Magnifying glass on colourful pie chart with "Credit report" tex

When LVNV Funding, LLC becomes the new owner of your debt, their name will often appear on your credit report alongside the collection account. Their remarks may include their contact information, how long the account will remain on your credit report, and the account status, such as unpaid, paid in full, or settled.

Under the Fair Credit Reporting Act, they are able and expected to report accurate and verifiable information. If it is not accurate, or they cannot verify the information, you may be able to remove LVNV Funding, LLC from your credit report by disputing the remark.

What Should I Do If I Receive a Letter or Call from LVNV Funding, LLC?

If you’re receiving calls or letters from a debt collector at LVNV Funding, LLC or Resurgent Capital, there are actions you can take and rights that protect you as a consumer in debt.

man reading letter - debt

First, read the Attorney’s Guide to Reading a Collection Letter. This will explain the core elements of the letter you received and the laws that collection agencies need to follow when sending letters about collection accounts.

Then, determine your next steps.

Are you sure you owe the alleged debt to LVNV Funding, LLC? If not, you might consider sending a debt validation letter. With a bit of research and legwork, you can attempt to do this on your own. If you’d like a free consultation with a law firm familiar with disputing debts, contact our team here at National Legal Center.

If you are sure the debt is valid, can you afford payments to resolve or settle the account? Make sure any arrangement is affordable and doesn’t leave you falling behind on other obligations.

National Legal Center negotiates with companies like LVNV Funding, LLC, and Resurgent Capital Services every day. Complete this short form to discover options to resolve debt with LVNV Funding, LLC, and any other creditors you may have on your credit reports.

Can LVNV Funding, LLC Sue Me?

court summons legal form

Yes, LVNV Funding, LLC may be able to sue you for the debt you owe. A debt collection lawsuit can be a frightening experience that you should not take lightly. If LVNV Funding, LLC sues you, it is important to seek legal assistance as soon as possible. National Legal Center offers a unique consultation specific to individuals facing lawsuits to discuss your case and determine the best course of action for you.

Should You Negotiate a Settlement with LVNV Funding, LLC?

When LVNV Funding, LLC is contacting you about a debt, one option to resolve the debt is negotiating a settlement.

A settlement is where you pay less than the total amount owed on the debt, either in a lump sum or over several monthly payments. Once you’ve paid the settlement, the account is reported to the credit bureaus as settled in full (or similar), and LVNV Funding, LLC should not take further action.

If LVNV Funding, LLC has filed a debt collection lawsuit and you’re considering settlement, things change a bit. Of specific importance is the timing of the settlement.

For example, if the settlement occurs after LVNV Funding, LLC issued a summons, you’ll want to make sure you know whether the court hearing was canceled. If not, you may still be expected to appear in court, even if only to share the details of the settlement.

If you settle an LVNV Funding, LLC lawsuit after a judgment was entered, you’ll want to have documentation that confirms they will file a satisfaction of judgment with the court.

While you can ask the representative at whatever law firm is handling the matter for LVNV Funding, LLC, it’s crucial to remember that they are not your attorneys!

Instead, they represent the other party, so it’s a good idea to be skeptical and confirm anything they tell you, because their job is to collect the most funds possible on the accounts they handle.

Negotiating a settlement is an excellent way to resolve a debt. Just make sure to cross your t’s and dot your i’s.

Tips for Negotiating a Settlement with LVNV Funding, LLC.

Here are some tips for negotiating a settlement with LVNV Funding, LLC. These suggestions apply to any other debt collector, too!

Here are some tips for negotiating a settlement with LVNV Funding, LLC, or any other debt collector:

  • Negotiate a settlement you know you can afford. Don’t over commit yourself and fail to complete the terms of the arrangement.
  • Obtain a letter outlining the terms of the agreement, including the amount to be paid and the payment due date.
  • Follow the letter’s instructions. If the settlement agreement is $4,089.98, pay that, don’t pay $4,090! If it is due by the 28th, paying on the 30th doesn’t cut it —if you need an extension on a settlement, you also need a new letter.
  • Maintain your documents. If the account surfaces in the future, you’ll be glad to have a copy of your settlement letter and proof that you paid it as agreed.

How Can a Debt Settlement Attorney Help?

Receiving a summons on a debt you owe to LVNV Funding is a serious legal matter. It can lead to a judgment, wage garnishment, a lien against your home, and more. Your best move is to consider hiring a debt relief lawyer to help protect your rights and ensure you aren’t taken advantage of or make a mistake during the legal proceedings.

Debt settlement

If you decide to work with an attorney, they will likely take a look at your entire financial situation and work to find a resolution that is affordable for you and minimize your legal risks. They may also identify alternate legal strategies to deal with the debt.

Did you know a debt settlement attorney can help even if you’re not facing a lawsuit?

You don’t have to wait until you receive a debt collection summons to begin working on a solution. By working with a lawyer familiar with debt-related matters, you can minimize the chances of a debt collection lawsuit happening in the first place.

Can the Fair Debt Collection Practices Act Help with a Debt Collection Lawsuit?

A debt collection company often walks a very fine line when trying to get a consumer to repay a collection account. Most collection agencies are cautious about following the laws that oversee debt collections, such as the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and other consumer protection laws. However, sometimes an untrained or unruly debt collector can violate your rights.

Among many other things, a debt collector may not:

  • share inaccurate information during phone calls
  • provide legal advice
  • lie about what type of legal action they can take
  • misrepresent the debt
  • pursue time-barred debt without proper notification
  • disclose your debt to third parties

If a representative of a debt collection agency has violated your rights and then you are facing a debt collection lawsuit, you may be able to file a counterclaim against them. A successful counterclaim on a debt collection lawsuit can lead to many outcomes. For example, it may result in dismissal of the lawsuit brought against you, a waiver of the debt owed, removal of the account from your credit reports, money damages to you, and more.

Contact Information for LVNV Funding, LLC

If you have an account that is owned by LVNV Funding, LLC, it helps to know how to contact them. To obtain confident contact information, you may want to go to the company’s website, your credit report, or the Better Business Bureau.

Below is the contact information for LVNV Funding, LLC as well as Resurgent Capital Services.

**Important**

At the time of this article’s publication, LVNV is requesting that all inquiries and communication be directed to Resurgent Capital Services. Be sure to verify payment instructions with any debt collection agency before making any payments.

LVNV Funding, LLC

Phone: (864) 248-8700
Fax: (864) 467-0163

Resurgent Capital Services

Correspondence Phone: 1-888-665-0374

Correspondence Address:
Resurgent Correspondence
PO Box 10497, Greenville, SC 29603

Payment Address:

Resurgent Capital Services
PO Box 10466, Greenville, SC 29603

Dispute and Complaint Address:
PO Box 1269, Greenville, SC 29602

Dispute and Complaint Email

officeofCCO@resurgent.com

Dispute & Complaint Phone: 1-866-572-0262

National Legal Center negotiates with debt buyers and debt collection agencies regularly. Complete this short form to discover options to deal with a summons from LVNV Funding, LLC and any other collections account you may have.

If you’re tired of struggling with debt, you’ve got options. Call today and let National Legal help you #standuptodebt once and for all.

Are you struggling with debt? Use the form below to get in touch with us.

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Disputing Cell Phone Bill

Disputing an Incorrect Charge On Your Cell Phone Bill

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Disputing an incorrect charge with a cell phone provider can be frustrating and time-consuming. However, if you follow the steps outlined in this article, you’ll have a much better chance of getting a refund for an incorrect charge on your cell phone bill.

Identifying Errors on Cell Phone Bills

Before you can dispute an incorrect charge with a cell phone provider, you’ll need to identify any errors on your bill.

There are several different types of errors that can appear on a cell phone bill:

  • random charges from third-party vendors (like those app-store purchases made by your toddler!)
  • duplicate charges for services or products you used only once
  • actual billing errors for your cellular service

It’s important to go through your cell phone bills carefully to identify any potential errors so that you have a complete list of all the charges you disagree with.

Additionally, if possible, it’s best to have one or more past bills available. This will help show how long the error has been occurring on your bill and just how much money is at stake with each disputed charge.

Disputing an Incorrect Charge On Your Cell Phone Bill

Contacting a Cell Phone Provider to Dispute an Error

Once you’ve identified errors on your cell phone bill, it’s time to contact your cell phone provider to dispute the charges.

You can do this by calling the customer service number listed on your monthly statement or in the online user portal for your account. Or, you can email them or send a message through that customer service portal.

To keep frustration low, you might find electronic methods of communication to be best.

If you choose to call customer service, have your bill and a list of disputed charges available to help expedite the process. It can be hard to get someone on the phone, so be prepared for the call. Once you’re speaking with a representative from your cell phone provider, explain which charges on your bill are incorrect and state that you’d like them refunded as soon as possible. They’ll probably request whatever supporting documentation you have, another reason you might want to begin with electronic communication.

If you choose to email or message your cell phone provider, take your time to state your case! Explain the issue and what you’d like them to do about it. Provide copies of your statements with the items of concern highlighted, and give them a total amount that you’d like refunded.

During your call, be sure to keep notes. Things you’ll want to record are:

  • The date of the call;
  • Who you spoke with;
  • What you explained;
  • Their reasoning for the disputed cell phone charge;
  • The outcome of the call;
  • If they agreed to refund you for the incorrect cell phone charge, the amount and method of refund.

Hopefully, this will solve the matter, but it may take more than one round of communication to get to the bottom of things.

Keeping good records will help you in the future if the account goes to a collection agency. It can be alarming if you receive a collection letter for a cellphone bill, but you’ll be well prepared.

Disputing an Incorrect Charge On Your Cell Phone Bill

Escalating Your Dispute with a Cell Phone Provider

If your cell phone provider still isn’t doing something about the disputed charges after you’ve taken all of the above steps, try escalating things to a higher level.

First, see if you can get an actual person on the phone by calling during off-peak hours when customer service lines are usually less busy. Whether you’re dealing with Verizon, T-Mobile, Boost, AT&T, or others, first thing in the morning tends to be best.

Once you connect with a representative directly, explain that you’ve already done everything they requested, but the charges are still on your bill. Next, ask for help getting in touch with a billing department manager. Depending on the company, a manager may review your bill and resolve concerns quickly.

Consider filing a complaint with the Federal Communications Commission (FCC) if this doesn’t work. Call the FCC toll-free at 888-CALL FCC (888-225-5322) or go online to www.fcc.gov.

Dealing with Past Due Cellphone Bills

Our debt relief law firm has spoken with many people who have past-due cellphone bills. These are often an interesting outlier compared to most other accounts because many of these are behind, not because the person could not repay the debt but because the person felt the charges were incorrect.

When cellphone bills aren’t paid, the provider might send the account to a third-party collection agency to collect on the account. Verizon, AT&T, and T-Mobile have internal processes to collect the debt, but they often send them out to debt collection agencies, too. Likely the largest collector of unpaid cellphone debt is Enhanced Recovery Corporation (ERC).

When an account goes into collections, be it internal or external, you have two main options: dispute the cell phone debt or negotiate a settlement of the cellphone bill.

Disputing Cell Phone Debt with a Collection Agency

When you’re dealing with a collection agency, be it ERC or another company, you’ll want to know that while they aren’t going to be able to confirm or deny any billing errors. However, you do have the ability to dispute the validity of the debt.

Debt collectors must adhere to consumer protection laws, specifically the Fair Debt Collections Practices Act (FDCPA). One provision of this law states that you can dispute the balance or a portion of the balance owed.

Here’s how you can dispute a debt with a collection agency.

Taking that action is one more effort to see the account balance reduced to the proper amount. Once the account balance is corrected, you can repay the past-due cellphone bill in full.

Disputing an Incorrect Charge On Your Cell Phone Bill

Negotiate a Cellphone Bill Settlement

If disputing the debt is unsuccessful, or you are outside of the timeframe to do so, you can attempt to negotiate the debt instead.

A settlement is when you come to an agreement with a creditor or collection agency to reduce the amount owed. They will usually consider this not based on a disputed charge but due to financial hardship. It can be difficult to “let go” of the inaccurate charges, but if the goal is to pay a fair amount, this may be another avenue to reach that end.

When you call to make the settlement request, be ready to provide them with your financial information. You may be able to negotiate a settlement over several monthly installments versus or with one lump sum payment. You’ll sometimes get a better deal by paying all at once.

Once you reach an agreement, be sure to get a settlement letter that outlines that you are settling the cellphone bill.

The letter should include:

  • The account number;
  • How much they claim you owe;
  • The amount they’ve agreed to accept as settlement;
  • The date the payment(s) is due.

This letter will protect you in case anyone tries to collect after you pay the settlement.

Getting Legal Help to Resolve Incorrect Cellphone Charges

If you cannot reach an agreement with them that meets your needs, it might be time to contact a debt settlement attorney. A qualified attorney can review your situation and help you decide on the best course of action.

An attorney may be able to work with your cellphone provider, attempt to negotiate a settlement on your behalf, or even file a lawsuit against them if they determine the collection agency has violated your rights.

National Legal Center has helped thousands of people across the country overcome debt and credit issues. Contact us today if you need help figuring out what options are available to resolve your past-due cell phone bills and other accounts.

Complete the form below to #StandUpToDebt today.

Struggling with debt? There ARE options. Request a free consultation today!

Trust a debt professional and keep it simple.

5 Times To Call A Debt Settlement Attorney

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Debt settlement lawyers are your best friend when you’re deep in debt.

These professionals help with debt negotiation and ensure that creditors know they can’t take advantage of you. We’re going to review:Call for help from a debt settlement attorney

  • When you should hire a debt settlement attorney
  • Why it is a better option than using a debt settlement company
  • Essential things to consider along the way

Let’s go!

 

What is a debt settlement attorney?

Debt settlement attorneys have a great understanding of contract law and the power of negotiations. They may directly negotiate on your behalf or have professional non-attorney negotiators who assist them in negotiating your credit card debt.

The team at National Legal Center will review many elements of your financial situation and create a plan of action. They may consider factors like your income, assets, who the creditors are, the state you reside in, and more. Knowledge of consumer rights laws puts attorneys a step ahead of the game in knowing what to look for. For example, they’ll know what a debt collector can and cannot do when collecting on a delinquent account.

When you’re falling behind on your accounts, hiring one of these professionals is the best way to ensure that collectors cannot take advantage of you.

 

Debt settlement versus bankruptcy

Debt settlement is often the preferred option, particularly when it comes to credit card debt. Many creditors and collection agencies have a history of being willing to settle debt for less than the full amount owed. Given the long-lasting implications of bankruptcy, debt settlements may be the better option.

However, bankruptcy has a place, and sometimes it makes sense.

By speaking with a debt settlement law firm, you’ll be able to get a confident understanding of your options.

 

Debt settlement & your credit

When you’re trying to settle outstanding debt, the first thing that comes up is how it will affect your credit rating. A debt relief attorney has a good understanding of this and should provide insight into the implications of your options.

Nearly any action you take on your accounts will affect your credit score. The same goes for bankruptcy and debt consolidation, too.

When you cannot make the minimum payments on your credit cards, your credit will be affected. An impact on your score is unavoidable when you fall delinquent, don’t be surprised when you see that happen.

Your credit score is important, and we can help improve your credit report. But, there are more significant issues to tend to first. Above all, you need a way to deal with this unaffordable debt. A plan created by National Legal Center will provide you with a way to deal with all of your debts.

 

When It’s Time To Call A Debt Settlement Attorney

Even the savviest of DIY’ers will want to know their boundaries. Take replacing your roof, for instance. Sure, you might be able to do it yourself. But, you also might not.

You have to consider the roof, your tools, if you have enough money to buy the materials, the time, and more. There are so many things to consider when replacing a roof. Then, what if it leaks? What if you had the best of intentions, planned as best you could, and used the right tools, yet somewhere along the line, you goofed. Now you have a leaky roof that can potentially cause further damages, possibly even mold.

And that’s with something relatively straightforward compared to negotiating with creditors and collectors!

When you face settlement negotiations, you would be wise to hire professionals to handle the tough stuff. Keep it simple.

The best thing about working with a law firm like National Legal Center? Professionals who have had years of practice dealing with creditors and collection agencies will assist you. They will be able to make sure all the t’s are crossed, and i’s are dotted, so a collector doesn’t try to come back after you in the future.

An attorney can help you navigate the legal complexities that might come up along the way, too. For example, what if you receive a summons? What if a collector offers a great deal, but you don’t have enough money to take the deal? What if the collector says they will not settle? These are the situations that come up regularly when accounts are delinquent on unsecured debt. You’ll be grateful to know who to reach out to for legal advice when these things come up!

 

Are debt settlement companies less expensive than debt settlement attorneys?

Surprisingly, debt settlement lawyer fees are often comparable in pricing to a debt settlement company.

Even though they generally charge about the same amount, there are so many things that a debt settlement company cannot do for their clients. Because a debt settlement company is not a law firm, they cannot offer legal advice. They cannot provide direct answers to your questions about lawsuits while settling debt. They cannot discuss an account’s statute of limitations. They cannot advise you on limiting your risks to protect yourself in the event of a credit card lawsuit.

The attorney-client relationship is incredibly valuable to consumers. A part of this relationship includes diving a bit deeper than you could with a non-attorney, specifically on your legal risks. Additionally, you receive a level of confidentiality that the attorney-client relationship protects. The level of privacy and legal strategy simply cannot be provided by a debt settlement company. We’ll be upfront and transparent about everything from the tax consequences of the settlement process to the risks and rewards.

So, while debt settlement companies charge about the same as a debt settlement law firm, you get tremendously more value from working with an attorney who can speak to all of these matters.

Okay, now that we’ve covered all the groundwork, on with the show!

 

It’s Time To Call A Debt Settlement Attorney When…

Your are facing an overwhelming amount of unsecured debt.

Suppose you have 1 or 2 delinquent accounts that are smaller, or your total debts is mostly comprised of medical bills or is under $10,000. In that case, it probably doesn’t make sense to hire an attorney for debt relief. A debt management plan may be more suitable when you need a bit of a helping hand to lower your interest rates or monthly payments. The larger your balances are, the greater your opportunity for savings becomes. When you factor in legal fees and other considerations, it is generally suggested that you only consider hiring a lawyer for debt settlement work if you owe more than $10,000 in unsecured debt.

 

You know you cannot meet your minimum payments.

If you are making minimum payments each month and are seeing progress, stay the course! We want you to become debt-free with as few drawbacks as possible. An affordable payment plan may take a long time, but traditional repayment will help avoid late fees while you pay the balances you owe.

Stand Up To Overwhelming Debt.

Are you struggling to make those minimum payments and falling further into crushing debt? Or maybe you received a collection letter with an offer you wished you could take, but just can’t afford it. If so, it’s time to consider all available options for dealing with the situation. You can request help from a lawyer to settle your accounts as a means to pay them down in a more affordable manner.

Pay the entire debt if you can. If you cannot, then speak with a case analyst at National Legal Center who has extensive experience with the options that are available.

 

You consider bankruptcy for debt relief.

Avoid Bankruptcy with debt settlement
 

Many of our clients are surprised to learn that they do not need to file bankruptcy to deal with overwhelming debt. There are many options to consider. For example, you may negotiate a settlement, request the collector validate the debt, or take another approach that is the right solution for you.

Are you considering a bankruptcy filing but would prefer to avoid it? If so, this is an excellent time to consider hiring a debt relief attorney. To be confident with whatever decision you choose, it is a good idea to consult with a bankruptcy attorney, too. This way, you can have a complete understanding of your available options.

Our firm employs many attorneys who practice bankruptcy. If not, we know many bankruptcy attorneys who offer a free consultation. We’ll be glad to make the connection.

 

You are facing a debt collection lawsuit.

Attorney for credit card lawsuit

Debt collectors make a lot of wild claims. Sometimes it can be hard to tell when they’re trying to scare you and when they really mean business.

Sometimes creditors will file a lawsuit on unsecured debts. Unfortunately, this can sometimes push consumers right into filing bankruptcy prematurely. Let’s face it—lawsuits are scary! You DO have options, though.

If you had to stop making payments on your debt and are facing a debt collection lawsuit, National Legal Center is here to help. We can provide legal information about the risks associated with the lawsuit. Even if you don’t have a lump sum to negotiate with them right now, we are very familiar with settling debts even after they’ve gone to a lawsuit.

It can be easy to focus solely on the lawsuit, but it is essential to remember your other debts, too. We’ll help you create a plan of action to deal with all of your creditors. Time is of the essence with debt collection lawsuits, though, so please connect with us right away to discuss the details of your case.

 

You’re worried about wage garnishment.

Attorney for credit card garnishment

When a creditor obtains a judgment against you, they may attempt to garnish your wages. In addition to wage garnishment, they can also try to levy money from your bank account, place a lien against your real estate, or seize personal assets. If a judgment has been entered against you, don’t ignore it. Speak with the professionals at National Legal to come up with a plan of action to deal with the matter.

 

Need professional help? Talk to a debt settlement lawyer.

These situations are certainly difficult. There is hope though!

 

When you’re struggling to keep up with payments, it can be challenging to determine which actions you should take. If you’re wondering “is debt settlement right for me?”, National Legal Center is ready to help. Contact us today at 800-728-5285, or complete the short form on this page for a free consultation. Let’s talk about your debt relief options. We’re ready to help you Stand Up To Debt!

Attorney Reading Collection Letter

An Attorney’s Guide to Reading a Collection Letter

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An Attorney’s Guide to Reading a Collection Letter

Collection letters are a scary thing for most people. So, we’re bringing you a debt relief attorney’s guide to reading a collection letter. They can be intimidating and confusing to read, but not if you follow these simple steps! Once you understand what the creditor wants from you, you’ll be ready to #standuptodebt with confidence.

We’re diving in deep to show you exactly how to read a collection letter from start to finish.

Have a specific item you’re curious about?

Follow these quick-links to the attorney’s guide to reading a collection letter to get you right to your answer.

What Does “Current Owner” Mean on a Collection Letter?
What Does “Charge-Off” Mean on a Collection Letter?
What Does ‘You have 30 days to dispute the validity of this debt’ Mean?
What Does “the Law Limits How Long You Can Be Sued On This Debt” Mean On A Collection Letter?

Let’s begin the attorney’s guide to reading a debt collection letter by looking at:

What Does “Current Owner” Mean on a Collection Letter?

When you first look at a collection letter, you’ll notice a few things. Near the top you’ll usually see details about the account. This may include: 

  • whom you owe
  • how much the claim you owe
  • who the current creditor or dent owner is
  • reference number
  • invoice numbers
  • the mailing address of the debt collection agency

An attorney's guide to reading a collection letter answers "what is a current creditor?"

First, we’ll dive in on the “current owner” portion of the details section. This may also appear as a “current creditor.” The terms can be used interchangeably.

What is a Current Owner or a Current Creditor?

If you have received a collection letter and are left asking yourself:

“What is a Current Owner/Creditor”

“Who is Midland Credit Management?”

“Who is Portfolio Recovery Associates?”

“Who is LVNV Funding?”

Or if you have some other company you’ve never heard of saying you owe them money—read on!

Who are these companies?

How could there be anything but the original creditor involved here?

Understanding the players involved will help you make informed decisions. In addition to understanding what a current owner is, we’ll also address how to know if you are dealing with a reputable company.

What is an Original Lender?

Before we jump into the current owner, let’s start from the beginning. The attorney’s guide to reading a collection letter is intended to be thorough, after all!

Among those details found near the top of a collection letter will usually be a reference to the original lender. The collection letter may also refer to the “creditor,” “lender,” or similar. Simply put, this is the company that you owed money to. This is the financial institution that initially issued the credit card, loan, or line of credit.

Examples include big banks such as Bank of America, Chase, or Discover, smaller local community banks and credit unions, and other lenders.

What is a Current Owner?

When someone falls behind on a debt, the account is considered “delinquent” or “in default.” A debt that falls behind goes through a rather expected lifecycle of delinquent debt.

One part of the lifecycle of delinquent debt is that the account may eventually be sold to a debt buyer. These are companies that purchase an inventory of delinquent debt for less than the total amount owed across all accounts. A lot less, according to the Federal Trade Commission.

Once they have purchased your debt, this debt buyer is now the owner of your account. Their goal is to collect as much as they can, on as many accounts as possible, to maximize their profit.

This company, the debt buyer who purchased your debt from the original creditor, is the “current owner” of the account. They have received the rights to the debt and can now pursue collections. They can attempt to collect directly, or they too can hire a third-party collection agency to collect on the debt.

Are They Legitimate?

If there is one thing the attorney’s guide to reading a collection letter wants to deliver, it is peace of mind. If you ever receive a letter from a company that is unfamiliar to you demanding money, pause! There are tons of scams out there, and they love to target vulnerable individuals.

If you have had debt trouble in the past, your debt may have been sold to a debt buyer. If the information regarding the debt is familiar to you, and you had trouble in the past, take it seriously, but confirm their credibility before paying.

If you are not familiar with the debt, or are not confident that this is a legitimate company attempting to collect on a legitimate debt, you have rights. You can research the company with a bit of online research. A bad BBB rating doesn’t mean they are illegitimate. Honestly, that is a bit expected for their industry.

Note that some types of debts, such as personal loans and payday loans, do have a higher tendency to attract scam artists. If this is the type of debt that the supposed collector is trying to collect, be extra wary.

If you still aren’t sure who this company is or are unsure that they’re legitimate, consider disputing the validity of the debt. You can do this on your own or with the help of an experienced attorney like you can find at National Legal Center.

Next in the Attorney’s Guide to Reading a Collection Letter:

What Does “Charge-Off” Mean on a Collection Letter?

Next, we’ll move on to another phrase often found when you read a collection letter.

Many collection letters will include the term “charge-off.”

Like credit reports, collection letters are full of terms that mean something other than what you might assume. Of all the odd terms found on collection letters, this one likely raises the most questions from clients receiving our debt resolution service.

So, what does “charge-off” mean on a collection letter?

Is it as bad as the collection letter makes it out to be?

Let’s take a look at that and also consider different perspectives based on your unique goals.

What Prompts it, and When?

The only time an account will charge off is if payments are delinquent.

Even if you are making partial payments, the creditor may charge off the account. Therefore, you need to make the minimum payment to avoid falling behind.

A charge-off will generally occur after about 180 days of non-payment. There may be some variation based on the type of debt, according to the FDIC. It can sometimes happen as early as 120 days after missing the first payment, but the 180-day mark is the normal timeframe for credit cards.

The Credit Bureau’s Perspective

Let’s start by looking at the way Experian defines it.

According to Experian, “Charge off” means that the credit grantor wrote your account off of their receivables as a loss, and it is closed to future charges. When an account displays a status of “charge off,” it means the account is closed to future use, although the debt is still owed.”

As you can see, this refers more to the creditor than the debtor.

Yes, a charge-off is considered a negative remark on a credit report. And, yes, it can affect the way the debt is collected. However, it more has to do with a creditor’s internal accounting.

Probably one of the most critical points their definition makes is that the debt is still owed.

The Collection Definition

Collection letters will often make statements such as “if you do not make arrangements to repay this debt, it may result in the account being charged off….”

They intend for this to sound scary.

It should come as no surprise that a collector will do whatever they legally can to collect on a past-due debt. Turning an accounting term into a scare tactic is just another example of how they tend to operate.

It can help to know that this is a normal part of the collection process.

That is worth repeating.

A charge-off is a normal part of the collection process.

In many cases, a charge-off can be helpful because the lender or any third-party debt collector that may become involved may be more willing to make a deal to resolve the debt.

Further, among the most helpful benefits of a charge-off is that it prevents late fees from continuing to accrue on the account. It may go without saying that this can be incredibly helpful when trying to get out of debt.

Friend or Foe?

So, what is the real takeaway here?

Most people think of charge-offs in a very negative sense. Sure, it is a negative remark on a credit report. In all reality, though, it is more of a ‘matter-of-fact’ occurrence. By the time you have an account that reaches this point, it is probably no surprise that the debt is behind.

That is the real issue- the delinquency. Making a single payment to prevent that charge off is just a band-aid. You’ll still have the same struggle to deal with next month or on another account.

Rather than viewing the reference to a charge-off as a call to take action on that particular account, use it as a jumping-off point to work on bettering your entire financial situation.

Rather than attempting to prevent (or, more likely, delay) a single account from charging off, you will be better off making a plan to resolve all of your debts.

Easier Said Than Done?

Dealing with trouble debt and credit is hard. But, you don’t have to go it alone. We will lend a few suggestions, but always consider your unique big-picture to determine the best steps to reach your goals.

If you’ve just recently fallen behind, consider working with a reputable non-profit credit counseling agency. They can help you create a budget and make a plan to repay all of your debts.

We don’t want you just to read the attorney’s guide to reading a collection letter. We want you to take action. 

If you are at the point of seeing your accounts charge off, you need a solution. This is an urgent situation, and you’ll want to create a plan of action to deal with the charge-off. The legal team at National Legal Center can assist you in doing exactly that.

One of the biggest focuses of the Attorney’s Guide to Reading a Collection Letter:

What Does ‘You have 30 days to dispute the validity of this debt’ Mean?

Collection letters come in all shapes and sizes.

They’re full of scary language and fine print. Or, maybe they say they’re on your side and want to be your friend. They may say the balance is due in full right away or that you must call their office to take advantage of some great offer. Sometimes they even have an entire second page with nothing but disclosures.

One of those disclosures, in particular, is very common. It usually accompanies the first letter a company sends after acquiring an account. This disclosure reads: “You have 30 days to dispute the validity of this debt.”

 

An attorney's guide to reading a collection letter answers "what is debt validation?"

What does it mean?

What happens after 30 days?

Why are they giving that deadline?

What if you don’t do whatever it is they’re saying to do?

We’re going to dive in on all that and more.

This information is not just for clients enrolled in our Debt Resolution Legal Services but for anyone who needs to know how to read a debt collection letter. It shouldn’t take a legal degree to understand your consumer rights. We’re here to break it down for you so you can #standuptodebt, once and for all.

A Notice Of Your Rights

The first thing to know is that this is not a scare tactic.

People are sometimes concerned after reading this particular disclosure. They think that if they do not do this “thing,” they might be sued or face some other consequence.

The disclosure: “You have 30 days to dispute the validity of this debt.” is informing you of a right afforded to you under the Fair Debt Collections Practices Act (FDCPA). The wording may sound a bit doom-and-gloom because of that 30-day “deadline” that it seems to express. However, it is meant to help you!

Legal-Speak

According to the Federal Trade Commission, the particular provision of the FDCPA extending the right to dispute the validity of the debt is:

If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

Yes. That is quite a run-on sentence.

Real Talk

This disclosure explains that under the FDCPA, you have the right as a person in debt to essentially say “this is not mine,” “I don’t believe I owe this,” or “that balance is not correct.”

If you do that within 30 days from the date you receive the collection letter, the collector should stop collecting until they validate the debt. That means they are not supposed to call, email, send letters or pursue other means of collection until they have provided you—the debtor— with proof of the debt.

There is so much upside there. Validating a debt can be a powerful tool for a person in debt, which is why it is one that debt settlement attorneys often use.

The Window Closes… Sort Of

Everything seems to center around this 30-day timeframe.

So, what happens after 30 days?

According to the Consumer Financial Protection Bureau, you can lose important rights if you do not act within the allotted time. Our experience shows that many reputable collection agencies and debt collectors will choose to stop collecting until they’ve provided validation of the debt, even if it is after the 30-day timeframe. However, as the CFPB points out, they are not likely under a legal obligation to do so.

It is always best to act within the timeframe specified under the FDCPA. However, if you do not believe the debt is valid, it may be worth disputing even if that window seems to have closed.

When To Send A Debt Validation Letter

The purpose of this provision of the FDCPA is to allow consumers to set the record straight. If you are receiving collection notices about a debt you don’t owe, this is your first chance to put it to rest. However, this right is not meant to get you out of debt that you legitimately owe.

Be mindful when disputing a debt- it could work against you.

The particular details of your situation will determine whether or not you should consider disputing a debt. For example, if you really do owe the debt, and you know you owe it, it may not be worth making the collector jump through the hoop of validating the debt.

Responding to their letter confirms a few things for them.

  1. you are alive
  2. they have the correct address
  3. you are aware of the debt
  4. the debt is bothering you

In addition to the information above, you have also forced them to gather statements and other documentation they may not have had to get. You’ve prompted them to put energy and expense into your debt.

Many of the documents needed to validate the debt also happen to be the same ones that assist a collector in filing a lawsuit to collect the debt.

So, again, be mindful.

What To Write In A Debt Validation Letter

The specific language one should use when writing a debt validation letter is specific to the details of the situation.

For example, our debt relief attorneys may send one letter when a balance seems different from what the client believes they owe. For example, we might send a different letter for a client who believes the debt was not theirs at all.

The CFPB provides several sample letters that can be quite useful.

For more specific guidance, speak with one of our knowledgeable Case Analysts to see how our debt settlement attorneys can help you.

What Will I Receive In Return?

If you are taking the time to write a letter to a collector, you might expect some sort of response. Per the FDCPA, their only requirement is to stop collecting until they can validate the debt. Assuming this is within that 30-day window, of course.

In some instances, they will send a letter confirming receipt of your request for debt validation. Beyond that, they should top collecting or send what they believe is proof.

A full validation will likely include credit card statements, a signed contract, and other documents to the effect.

Sometimes, they will send a haphazard letter or explanation claiming the debt is valid without giving much “proof.” In instances like this, our attorneys will often engage them through several rounds of communication. They may explain why they don’t believe the validation was accurate or thorough, among other approaches.

And sometimes, the collectors won’t respond at all.

They may genuinely cease collecting on the debt, conceding that they cannot prove that it is valid. In some instances, they may even send a letter confirming that they could not obtain appropriate documentation and will discontinue collecting the debt.

Well, What is a Debtor to Do?

As is so often the case, it depends.

Debt matters are so situational that attempting to provide a cookie-cutter response would be a disservice to you and a risk to your financial future.

Before sending a letter on your own:

  1. Arm yourself with all the information you can.
  2. Read more.
  3. Review example letters.
  4. Make sure you understand the specifics of your debt situation and how aggressive or consumer-friendly the collecting entity is.

Each item should help you decide whether or not to take action after reading that now not-so-scary disclosure- “You have 30 days to dispute the validity of this debt.”

Last, but not least, in the Attorney’s Guide to Reading a Collection Letter:

What Does ‘The law limits how long you can be sued on this debt’ Mean on a Collection Letter?

Sometimes it can be hard to tell what a collection letter is really trying to say. For example, is the collector sharing a notice that they are required to share by law? Or are they trying to frighten the reader into making a payment?

If you have ever come across the phrase “The law limits how long you can be sued on a debt” on a collection letter, it is crucial that you understand the meaning. This one sentence may entirely change the way you choose to deal with the account.

An attorney's guide to reading a collection letter answers "what is a debts statute of limitations?"

Simple Notice or Scare Tactic?

When this disclosure appears on a collection letter, it is most assuredly not a scare tactic.

It can be alarming to see any phrasing that refers to being sued, which sends many people into a bit of a panic. In this situation, though, the entire sentence and context is very important. They are explaining that they cannot, or will not, sue you because of how long the debt has gone unpaid.

So, this is a win!

Eliminating this risk takes away one of the biggest concerns of debt falling delinquent.

In some places, law dictates that collection agencies and other collecting entities tell debtors that they cannot sue them. This crucial factor allows the consumer to make informed decisions on how to deal with the debt.

The paragraph may include other vital points for you to be aware of. For example, they may also explain situations where they can regain the option to take legal action, such as when the debtor agrees to make a payment. So, be sure to read the letter closely. Sometimes it helps you understand what not to do!

What is a Statute of Limitations?

A statute of limitations is how long a person or entity has to take legal action against another person or entity for a grievance.

Statutes of limitations apply to many different situations. For example, it can come into play in criminal, corporate, or civil matters.

Generally, a collector will not sue on a debt that has passed the statute of limitations. However, there are times when they may still do so. When that happens, they may be unaware of the passing of the limitation, or they may be hoping that the consumer isn’t aware of their legal rights.

Suppose someone is sued after the statute of limitations has passed. In that case, the debtor then has a solid legal defense should a creditor take legal action against the individual.

State Laws Regarding Debt Collection

Regarding debt collection, some laws are established under federal laws, and others under state laws. For example, the FDCPA (Fair Debt Collection Practices Act) is established under federal law, whereas individual states determine the statute of limitations applicable under civil contract law.

Each state dictates its own statute of limitations regarding debt litigation. While the time frame generally falls around 5-6 years, there is a great deal of nuance from one state to the next and one type of debt to the next. For this reason, it is essential to review this legal matter with a debt attorney who is familiar with the laws of your state.

Examples of the nuance that often come up which can complicate the interpretation of the statute of limitations on a collection letter are:

  • Did you move to a different state than when you opened the account?
  • What state law did the original agreement say it would use?
  • Has there ever been a lawsuit filed on this account before?
  • Was this a revolving line of credit, like a credit card, an installment loan, or some other type of debt?
  • Was there a co-borrower on the account?
  • Did you agree to make a payment after initially falling behind?
  • Did you actually make a payment after initially falling behind?
  • In some locations, did you acknowledge that yes, you owe that debt in writing?

These are just a few examples of facts to consider when determining what it means when you see “The law limits how long you can be sued on a debt” on a collection letter.

There is a good chance that seeing that language on a collection letter means the collector should not file a lawsuit. However, it is imperative to speak with a licensed debt attorney to be sure. They will be able to help you interpret the document correctly and guide you on the next steps.

What Starts The Clock?

In many jurisdictions, the account starts counting down toward the statute of limitation when the last transaction occurred. That, of course, does leave plenty of gray area, which is why it is best to err on the side of caution.

Reviewing your credit report can help you identify the date the creditor reported to the credit bureaus as the last payment date, as well as when the account charged off.

Continued Implications

When you see “The law limits how long you can be sued on a debt” on a collection letter, a deep sigh of relief is warranted! This is because the legal risks on the account are likely much less when that statute has passed.

While this is wonderful news, it also helps to know that there are continued implications to having the debt remain outstanding.

Credit Report

When an account is delinquent, it will be reported to the credit bureaus as being behind. The statute of limitations does not have any tie to how long an account appears on your credit report.

Accounts generally remain on credit reports for seven years from the initial delinquency. So, even if you live in a state with a short statute—say three years—it will likely continue to appear in your credit report until the end of that seven-year time frame.

Collection Activity

In addition to appearing on your credit report, you may still experience collection activity on the account. Even if the collector cannot sue, they can call and send letters as long as they wish, up until you tell each new collector to stop in writing. An entire subset of the debt purchasing industry focuses on purchasing debt long past the statute of limitations.

If they continue calling and sending letters, your risks are not likely to change as long as you do not do something that resets the statute of limitations. Some ways you can unintentionally do this are by making a payment or even just a promise to make a payment on the debt in some states.

Speaking with a debt attorney will help you understand how to handle ongoing collection activity on post-statute accounts. In fact, several laws govern the collection of this kind of debt. Suppose they are not adhering to these regulations. In that case, you may be able to take action against them, possibly leading to your receiving money from the collector.

Financing Hurdles

If you are in the market for a home or a mortgage refinance, the debt may pose a hurdle to you. Sometimes they will require the borrower to resolve the debt even if it is past the statute of limitations.

You may have the option of settling the debt, or they may require that you pay the balance in full to complete the financing.

What to Do

Now that you understand what it means to see “The law limits how long you can be sued on a debt” on a collection letter, what’s next?

Sometimes inaction is the best strategy.

Suppose you confirm that the account is truly past the statute of limitations, congratulations! Aside from a pesky remark on your credit report and occasional letters or calls, you are not likely to have much more trouble with this account. Even if the account isn’t actually past the statute of limitations, save the letter. If the same collector later files suit you can produce that in court to show why the case should be dismissed, because you relied on their assertion.

Given that this is a state law with quite a bit of nuance, we suggest speaking with a debt attorney familiar with your state laws to ensure correct interpretation of the letter. The legal professionals at National Legal Center are glad to discuss your available options to help you move forward with confidence.

An Attorney’s Guide To Reading a Collection Letter

While we hope that this information and the resources provided are helpful and maybe even actionable, we do not want you to take it as legal advice.

If you have received a collection letter, don’t panic!

This is a letter. You can take your time to read it carefully and understand what you are being asked to do. And you should.

If you have any questions, please submit a request for a consultation or call our office. We can help read through the collection letter you’ve received. Become confident as you navigate the collections process with a law firm by your side. Reach out so we can stand up to debt, together!

Senior Older Americans Debt Collection

How Can Older Americans Combat Debt Collection Trouble?

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Older Americans are struggling, possibly more than ever.

In 2019, the Congressional Research Service completed a study that found that 61% of households led by an individual aged 65 or older are dealing with a median debt of $31,500. Given that the average social security benefit is roughly $1,500 monthly, there is quite a gap to overcome.

With finances so tight for older Americans on a fixed income, it is not uncommon for accounts to fall behind. This leads to debt collection trouble. From phone calls and collection letters to late fees and high interest charges, it can be a lot to deal with.

The team at National Legal Center advocates for older Americans and helps them overcome debt collection trouble.

If you are an older American dealing with debt collection trouble—or care for someone who is— a few action items can make a world of difference.

Acknowledge and Assess

First, get a complete understanding of the situation.

Obtain a free copy of your credit report from AnnualCreditReport.com. Usually, you can obtain one free copy per bureau per year. However, at the time of this writing, you can get free reports weekly due to the pandemic.

Once you have the report, compare the information on your credit report with what the debt collectors claim you owe. If anything does not match up, make a note of it so you can consider disputing the debt when you develop your action plan.

Know Your Rights

Second, know your rights.

It may be helpful to speak with a debt attorney or do some careful research to understand what a debt collector can or cannot do or say. Many consumer protection laws are meant to prevent a debt collector from doing and saying certain things. Many of these are provisions of the FDCPA (Fair Debt Collections Practices Act).

Just because it is a law, though, doesn’t mean they don’t step over the line from time to time. Knowing your rights will help you know when a collector is in violation, potentially allowing you to take action against them.

Know Your Risks

In addition to knowing what your rights are, it helps to know what risks you may be facing.

When the legal team at NLC speaks with older Americans about their debt, we spend a lot of time understanding their risk. This will help determine the most appropriate approach to dealing with debt.

An older American on a limited, fixed income who does not own property will likely have different risks than a homeowner working a part-time job.

These details, and many others, will determine what a creditor can and cannot do in their efforts to collect on a debt. By understanding your risks, you can then see if there are ways to minimize them proactively.

Develop a Plan

Lastly, make an action plan.

Once you understand the details of your situation and your rights and risks as a person with delinquent debt, you can make a plan of action to deal with the situation.

Your plan may simply be to make payment arrangements with the collectors. In other situations you may want to write letters to dispute the debt or inform them of your hardship and your inability to pay. If you aren’t sure, consider speaking with an attorney familiar with state and federal laws surrounding debt to help you develop your plan of action.

Stand Up To Debt

Whatever your action plan proves to be, ensure it is achievable and affordable. Affordability is especially important for older Americans who are dealing with debt on a fixed income. Follow these steps, and you’ll have the best chances of success. We wish you luck in standing up to debt!

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