What is LVNV Funding and how do I remove it from my credit reports?

Woman sitting at her kitchen table with her laptop open, reading through her credit report and learning about LVNV fundingImage: Woman sitting at her kitchen table with her laptop open, reading through her credit report and learning about LVNV funding

In a Nutshell

LVNV Funding is a debt buyer — a company that buys defaulted debts from banks and other lenders. You may see it on your credit reports if you have an account in collections.
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LVNV Funding LLC is a company that buys charged-off accounts from companies like credit card issuers and personal loan lenders.

A charge-off is a debt that the original creditor has given up trying to collect on after you’ve missed a number of payments. But just because the original creditor has written the debt off doesn’t mean you don’t have to pay it anymore. If your creditor sold the debt, you’ll then owe the outstanding debt to the company or debt collection agency that bought it — in this case, LVNV Funding.

Here’s what you need to know about why LVNV Funding could be on your credit reports and what to do next.

Why is LVNV Funding on my credit reports?

When LVNV Funding buys your debt, the account could start showing up on your credit reports as an account in collections, in addition to the charged-off account with your original lender.

LVNV Funding contracts with another company called Resurgent Capital Services that’s responsible for actually collecting on the debt. That means while you may see LVNV Funding on your credit reports, if you hear from a debt collector, it’ll probably be Resurgent that contacts you.

Whether you’re contacted by a debt collector or you see a collection account on your credit reports, your first step should be to verify the debt and make sure that the debt collector has the right to collect on it. Get information about the debt in writing from the debt collector and make sure you know your rights from the Fair Debt Collection Practices Act.

What to do if a debt in collections is legitimate

There are a few options for you to consider if a debt that’s gone into  collections is legitimate.

Pay it off. If your debt has been sold to one company that’s contracting with yet another company to actually collect on it, it can be confusing to figure out who and what you’re paying. It’s a good idea to do your research before you contact the debt collection agency.

Look into credit counseling. Look for a credit counselor who has been accredited by the National Foundation for Credit Counseling. They can help you create a plan to manage your debt. 

Be careful with debt settlement. Debt settlement companies may claim that they can settle your debt for a lump payment that’s less than the total amount you owe. In some cases, this could be true. But be careful: The Federal Trade Commission warns that these claims aren’t always true. It’s generally a good idea to avoid companies that make guarantees or try to get you to pay fees before your debts have been settled.

How to remove LVNV Funding from your credit reports

If you’ve verified that the debt was correctly reported, the account in collections will likely stay on your reports until it falls off, about seven years.

You may have heard of a tactic known as “pay-for-delete,” in which the debt collector agrees to remove the collections account from your reports if you make a lump payment. There’s no guarantee that this will work — according to the Federal Trade Commission, debt collection agencies are legally required to report accurate information to the credit bureaus. So it’s generally illegal for debt collectors to knowingly report inaccurate information. You should be very wary of any agency that claims you can pay to remove a collections account from your credit reports.

Also, even if the debt collector were able to remove the collections account by falsely reporting it as inaccurate, the derogatory mark from the original charged-off account won’t be removed.

But if the debt isn’t legitimate, it could be a sign that somebody has stolen your identity. If there’s an account you still don’t recognize after you look into it, reach out to the three major consumer credit bureaus and dispute the debt.

The credit bureaus are required to investigate disputes and send your information about the error to the debt collector. The debt collector is obligated to investigate that information and must notify all three of the credit bureaus about any inaccuracies it finds so that your reports can be corrected.

Can you remove late payments from your credit reports?

Next steps: What to do if there’s an account you don’t recognize on your credit reports

It can be scary to have a collections account appear on your credit reports. While you’ll likely see an impact on your credit, you can take proactive steps to build your credit over time.

But if the account in collections is wrong, start by disputing the inaccuracy and then consider adding credit monitoring to your financial routine. Regularly monitoring your credit may help you catch any other inaccuracies or signs of possible fraud in case your identity has been stolen. You can access your credit reports periodically from all three major consumer credit bureaus for free at annualcreditreport.com.

About the author: Casey Hollis is a managing editor at Credit Karma, specializing in credit card reviews and education. Throughout her career in writing and editing informational content — from health news and advice at Healthline.com … Read more.