Consumer complaint received 2022-07-13
Company: Resurgent Capital Services L.P.
State: FL
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
LVNV FUNDING LLLC is attempting to collect an alleged debt that is uncollectable for the following reasons : 1. Creditor is in breach of any alleged agreement that it claims I am bound by.

2. Creditor failed to make full disclosure in its credit card agreement prior to soliciting my application to be bound by it.

3. Due to the breach and lack of full disclosure, you are attempting to collect an alleged debt from me, you are committing false, deceptive, or misleading representations or means, in violation of Section 807 of the FDCPA, 15 U.S.C. 1692e, committing fraud.

4. Creditor has failed to fully disclose the fact that it sold its credit card receivables relating to the alleged account that you claim I am bound by. This transaction is a securitization. 
5. Due to the securitization of the initial outstanding balances of the alleged account, creditor is not a holder in due course, and therefore has no rights or interest in the receivables you are attempting to collect.

Law in support of the above : THE TRANSACTION In a credit card securitization transaction only the receivables are sold, not the accounts that generate the receivables. The financial institution retains legal ownership of the credit card accounts and can continue to change the terms on the accounts. Accounts corresponding to securitized loans are typically referred to as the designated accounts ( or sometimes trust accounts ). The initial outstanding balances on the designated accounts are sold to the trust as are the rights to any new charges on the designated accounts. Subsequently, as cardholder purchase activity generates more receivables on the designated accounts, these new receivables are purchased by the trust from the originating institution/seller/transferor. The trust uses the monthly principal payments received from the cardholders to acquire these new charges or receivables. When the securitization is initially set up, the originating institution/seller adds sufficient receivables to support the principal balance of the certificates plus an additional amount ( seller 's interest ) that serves to absorb fluctuations in the outstanding balance of the receivables. The originating institution/seller will make subsequent additions to the trust in order to keep the seller 's interest at the required level. ( Emphasis added ) See : XXXX XXXX XXXX XXXX XXXXXXXX. An originator of a typical securitization ( the transferor ) transfers a portfolio of financial assets to an SPE, commonly a trust. In " pass-through '' and " pay-through '' securitizations, receivables are transferred to the SPE at the inception of the securitization, and no further transfers are made ; all cash collections are paid to the holders of beneficial interests in the SPE. In " revolving-period '' securitizations, receivables are transferred at the inception and also periodically ( daily or monthly ) thereafter for a defined period ( commonly three to eight years ), referred to as the revolving period. During the revolving period, the SPE uses most of the cash collections to purchase additional receivables from the transferor on prearranged terms.

75. Beneficial interests in the SPE are sold to investors and the proceeds are used to pay the transferor for the assets transferred. Those beneficial interests may comprise either a single class having equity characteristics or multiple classes of interests, some having debt characteristics and others having equity characteristics. The cash collected from the portfolio is distributed to the investors and others as specified by the legal documents that established the XXXX. 
See XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX. XXXX, XXXX XXXX XXXX XXXX, XX/XX/2000 ( XXXX XXXX ) Please provide the following : 1. Agreement with your client that grants you the agent authority to collect on this alleged debt.

2. Agreement that bears the signature of the alleged debtor wherein he/she agreed to pay XXXX XXXX XXXX, and or an agreement showing I agree to pay a creditor and or their agent.

3. A copy of your oath of office confirming you are not violating 15 USC 1692 ( e ) 3 and establishing your legal standing to collect anything from me.

4. Any insurance claims been made by any creditor regarding this account.

5. Any judgments obtained by any creditor regarding this account that gives you the right to collect anything from me.

6. Name and address of alleged original creditor.

7. Name on file of alleged debtor.

8. Alleged account number.

9. Address on file for alleged debtor.

10. Amount of alleged debt and what it is for.

11. Date this alleged debt became payable.

12. If the account is charged off, the date of original charge off or delinquency.

13. Verification that this debt was assigned or sold to collector.

14. If this debt has been assigned to collector, please provide the commission amount if collection efforts are successful.

15. If this debt has been sold to collector, please provide the price for which it was sold, and proof of sale. Include all trailing documents identifying the SELLER you purchased it from and ALL PREVIOUS OWNERS.

16. A true and correct copy of the transfer instrument that was used to transfer the initial outstanding balances from this alleged account into the Special Purpose Entity ( SPE ) trust, as described on the FDIC website above.

17. Agreement between your agency and I of any contractual or debtor/creditor arrangement.

18. Complete accounting of alleged debt showing how you specifically calculated the entire amount of what you say I owe.

19. Copies of any and all account level documents that show I agreed to pay what you say I owe to include original signatures.

LVNV FUNDING LLLC offices has continued fail to respond to this validation request all references to this account must be deleted and completely removed from my credit files with the credit reporting agencies, and a copy of such deletion request shall be sent to me immediately. You are to cease all collection efforts as delineated under 15 USC 1692g Sec. 809 ( b ) of the FDCPA until proper validation is provided.

Company response to consumer: Closed with non-monetary relief