Consumer complaint received 2024-09-18
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Resurgent Capital Services L.P. (NC)

XXXX Department Resurgent Capital Services , L.P . 
LVNV Funding, LLC XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX RE : XXXX XXXX CFPB Case # : XXXX - XXXX Reference Numbers : XXXX, XXXX, XXXX Dear Compliance Department, I am writing in response to your companys recent response, dated XX/XX/XXXX, to my dispute letter dated XX/XX/XXXX. Upon review of your letter and its many attachments, I believe there are clear violations of th

e U.S. Code title 15 of which I will refer to as I proceed with this letter. First, according to 15 U.S. Code 6802 ( a ), a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information unless the institution provides or has provided a notice to the consumer that complies with section XXXX of the same title. To my knowledge, I have neither received any such notice from XXXX  XXXX XXXX, nor XXXX XXXX XXXX  XXXX 
Furthermore, under 15 U.S. Code 6802 ( b ), a financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless the following conditions are met : The institution clearly and conspicuously discloses to the consumer, in writing or electronic form, that such information may be disclosed to third parties. 
The consumer is given the opportunity, before the initial disclosure, to direct that such information not be disclosed to third parties. 
The consumer is provided with an explanation of how to exercise this nondisclosure option. 
I assert that I have not been provided with any clear and conspicuous disclosure regarding the sharing of my personal information with third parties. I further assert that I have not been given the opportunity, before the initial disclosure, to direct that such information not be disclosed to third parties. Additionally, I have not been given the opportunity to opt out of such disclosures, nor have I received any instructions on how to exercise this right. Therefore, you all have illegally and fraudulently obtained my personal information as I did not give any financial institution or any of its affiliates permission to disclose my personal information. If you have evidence to the contrary I ask that that evidence be submitted to me as soon as possible. 
Enclosed in your letter to me it is stated for each account mentioned that The credit application, bill statements, and terms and conditions on file for the account are enclosed for review. I will address each account 's terms and conditions separately. 
According to your letter, the first account, account number XXXX, reference number XXXX, originating with XXXX XXXX XXXX XXXX on XX/XX/XXXX and opened with XXXX was charged off on XX/XX/XXXX with a balance of {$670.00}. LVNV acquired this account on XX/XX/XXXX. 
Financial institutions covered by the Gramm-Leach-Bliley Act must tell their customers about their information-sharing practices and explain to customers their right to " opt out '' if they don't want their information shared with certain third parties. Is your company following the requirements of the Privacy Rule? 
After reviewing the terms and conditions and/or agreement of XXXX XXXX XXXX XXXX the word privacy is not even mentioned. There is no mention on the use of nonpublic personal information of the consumer in the terms and conditions and/or agreement. This is a clear violation of 15 U.S. Code 6803 which states : At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear and conspicuous disclosure to such consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, of such financial institutions policies and practices with respect to ( 1 ) disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 6802 of this title, including the categories of information that may be disclosed ; ( 2 ) disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution; and ( 3 ) protecting the nonpublic personal information of consumers.

( b ) Regulations Disclosures required by subsection ( a ) shall be made in accordance with the regulations prescribed under section 6804 of this title. 
( c ) Information to be included The disclosure required by subsection ( a ) shall include ( XXXX ) the policies and practices of the institution with respect to disclosing nonpublic personal information to nonaffiliated third parties, other than agents of the institution, consistent with section 6802 of this title, and including ( A ) the categories of persons to whom the information is or may be disclosed, other than the persons to whom the information may be provided pursuant to section 6802 ( e ) of this title ; and ( B ) the policies and practices of the institution with respect to disclosing of nonpublic personal information of persons who have ceased to be customers of the financial institution ; ( XXXX ) the categories of nonpublic personal information that are collected by the financial institution ; ( XXXX ) the policies that the institution maintains to protect the confidentiality and security of nonpublic personal information in accordance with section 6801 of this title ; and ( XXXX ) the disclosures required, if any, under section 1681a ( d ) ( 2 ) ( A ) ( iii ) of this title. 
Yet, in XXXX XXXX XXXX XXXX Agreement it states the following : Sale/Assignment/Transfer. We may sell, assign, or transfer all or any portion of your account or any account balances due under your account without prior notice to you This statement is also a violation of federal law 15 U.S. Code 6802 which state : ( a ) Notice requirements Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 6803 of this title.

( b ) Opt out ( 1 ) In general A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; ( B ) the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) the consumer is given an explanation of how the consumer can exercise that nondisclosure option. 
I will be combining my replies to the second and third accounts as they both are from the same original account holder. 
According to your letter, The second account, account number XXXX, reference number XXXX, originated with XXXX XXXX XXXX, XXXX. on XX/XX/XXXX. This account charged off on XX/XX/XXXX with a balance of {$580.00}. LVNV acquired this account on XX/XX/XXXX The third account, account number XXXX, reference number XXXX, originated with XXXX XXXX XXXX, XXXX. on XX/XX/XXXX. This account charged off on XX/XX/XXXX with a balance of {$930.00}. LVNV acquired this account on XX/XX/XXXX After reviewing the terms and conditions of XXXX XXXX XXXX, XXXX. the sections entitled : Collecting, Sharing, and Updating Information, it states as follows : We send you our privacy policy when you open your account and thereafter in accordance with applicable law. It summarizes the personal information we collect ; how we safeguard its confidentiality and security ; when it may be shared with others ; and how you can limit our sharing of this information. You accept the terms of our privacy policy when you use the Account. Contact us or visit XXXX if you would like a copy. 
This clause is a contradiction unto itself. It states in the beginning We send you our privacy policy when you open your account and thereafter in accordance with applicable law. Then at the end of the clause it states, You accept the terms of our privacy policy ( which the consumer has NEVER seen ) when you use the Account. And then the last statement states : Contact us or visit XXXX if you would like a copy. What happened to the first statement? We send you our privacy policy This is willful deception and a violation of the U.S. Code title 18. 
I submit to you that to my knowledge I have never received the privacy policy from XXXX XXXX XXXX. If I did receive one, it most certainly was not before I had an open account with XXXX XXXX Bank. 
This statement is also a violation of 15 U.S. Code 6809 which states : ( 11 ) Customer relationship The term time of establishing a customer relationship shall be defined by the regulations prescribed under section 6804 of this title, and shall, in the case of a financial institution engaged in extending credit directly to consumers to finance purchases of goods or services, mean the time of establishing the credit relationship with the consumer. 
This deceptive use of language in XXXX XXXX XXXX  clause at the time of establishing a customer relationship is not clear and conspicuous, therefore in violation of 15 U.S. Code 6802 ( b ), a financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless the following conditions are met : The institution clearly and conspicuously discloses to the consumer, in writing or electronic form, that such information may be disclosed to third parties. 
Also, according to your letter, each account has been charged off. Account one, XXXX  XXXX XXXX XXXX XXXX off on XX/XX/XXXX. Account XXXX, XXXX XXXX XXXX  was charged off on XX/XX/XXXX. And account XXXX, XXXX XXXX XXXX  was charged off on XX/XX/XXXX. When a debt has been charged off the original account holder files form 1099-C ( Cancellation of Debt ) to write the debt off as income reported to the IRS. The IRS states the following : File Form 1099-C for each debtor for whom you canceled {$600.00} or more of a debt owed to you if : You are an applicable financial entity. 
An identifiable event has occurred. 
As indicated by you, these accounts have all been charged off and therefore these accounts are no longer debts ; they are now income and income is not reported on a consumer report. 
The account ending in XXXX you state in your letter that a judgment was obtained on this account on XX/XX/XXXX in the magistrate court of XXXX XXXX state of Georgia. You also stated that I was served a summons and complaint on XX/XX/XXXX. I never received a summons or complaint. If you say I did, I would like to see a signed document indicating that it was in fact delivered. Regardless, even that account is in violation of the U.S. Code title 15. 


Finally, I am requesting a reinvestigation into the XXXX accounts held by LVNV, according to 15 U.S. Code 1681i : ( a ) Reinvestigations of disputed information ( 1 ) Reinvestigation required ( A ) In general Subject to subsection ( f ) and except as provided in subsection ( g ), if the completeness or accuracy of any item of information contained in a consumers file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly, or indirectly through a reseller, of such dispute, the agency shall, free of charge, conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate and record the current status of the disputed information, or delete the item from the file in accordance with paragraph ( XXXX ), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer or reseller. 
Please acknowledge receipt of this letter and provide a detailed response of the process of the reinvestigation within 30 days. Failure to comply with all of the federal laws mentioned in this letter regarding these XXXX accounts and the deleting of these XXXX accounts from my consumer report may leave me no choice but to seek remedies through appropriate legal channels. 
Thank you for your prompt attention to this matter. 
Sincerely, XXXX XXXX