LVNV Funding filed a frivolous lawsuit to collect the “remaining balance” two years after the consumer paid Leading Edge Recovery Solutions, LLC, a collection agency acting on LVNV’s behalf, according to a complaint alleging that both of the debt collectors violated the Fair Debt Collection Practices Act (“FDCPA”).
The lawsuit alleged that the consumer paid Leading Edge Recovery Solutions the requested $ 5,144.77 on an alleged debt of $ 7,349.63 allegedly owed to LVNV Funding.
The complaint alleged that the collection agency’s letter promised “we will consider the account SETTLED IN FULL.”
According to the Fair Debt lawsuit, LVNV sued the consumer in small claims court seeking the approximate difference between the amount consumer paid Leading Edge Recovery Solutions and the amount originally claimed to be owed to LVNV.
The consumer filed a response stating “I would like for this company [LVNV] to do what they said they would do as I have already done.”
The complaint against LVNV alleges that, instead of dismissing the case with prejudice as “an honorable debt collector would have immediately” done, LVNV refused to dismiss the lawsuit.
The Fair Debt complaint alleged that the consumer had to hire a lawyer to defend him against LVNV’s collection lawsuit.
The consumer alleged that LVNV attempted to dismiss its small claims collection case without prejudice (rather than with prejudice) because LVNV intended to be able to sue the consumer again in the future or to sell or assign the alleged debt to a collector who would then attempt to collect from consumer. The court denied LVNV’s motion.
The complaint alleged that LVNV’s lawyer did not show up for the trial and the court dismissed LVNV’s collection lawsuit with prejudice.
The factual allegations in the complaint against LVNV and Leading Edge Recovery Solutions collection agency are just that — alleged facts. The consumer’s allegations have not been proven in court.
The facts alleged by the consumer demonstrate some of the hazards of paying debt collectors and the importance of getting it in writing before the consumer pays.
Consumers should also save the letter containing the offer to accept less than the full balance along with proof that the collection agency received the payment(s) on time.
Consumers can not ignore any lawsuits seeking to collect old accounts, not even settled or paid off accounts. Consumers should consider hiring a lawyer to defend against collection lawsuits by debt collectors, especially cases where the consumer believes the debt collector’s case may be frivolous.
In Florida, a collection agency would be liable for the consumer’s attorney’s fees if the consumer proved that consumer paid off the account before the collection agency filed its lawsuit attempting to collect more money.
If you are receiving letters or telephone calls demanding that you pay money allegedly owed to LVNV Funding, Resurgent Financial, or Leading Edge Recovery Solutions, you are welcome to contact me using the Contact Form in the right hand column. If you are a Florida resident, you are also welcome to call my office. I will contact you to discuss your situation, your rights and responsibilities, and how I may be able to help.
If you live outside Florida, I will try to provide you with the name of a Fair Debt lawyer licensed in your state and whose office is located in your state or provide you with a resource to assist you in obtaining a local lawyer.
(C) 2011 – 2013 Donald E Petersen
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