Consumer complaint received 2026-03-15 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Resurgent Capital Services L.P.
State: IA

Complaint narrative:
I am filing this complaint regarding LVNV Funding LLCs/Resurgent Capital Services, here throughout refered to as LVNV Funding, continued reporting of inaccurate credit information after a legally binding settlement agreement. LVNV Funding previously initiated legal action against me regarding the above account. In early XX/XX/year>, I reached a settlement agreement with LVNV Fundings retained law firm, XXXX XXXX XXXX, to resolve the matter for {$950.00}. During the settlement call, I provided the law firm with my account and routing number and explicitly informed the representative that the account I was providing was a savings account. I specifically asked whether a withdrawal from a savings account would be acceptable, and the representative confirmed that it would not be a problem and that the payment would be withdrawn within approximately XXXX days. The payment was never withdrawn. After noticing that the funds had not been removed from my account, I contacted the law firm to inquire about the status of the payment. At that time, I was informed that the payment had not been processed because they could not withdraw funds from a savings account. This directly contradicted what I had been told during the first settlement call. The law firm did not contact me to notify me that the payment could not be processed or that the payment method was unacceptable. Instead, the legal action simply continued despite the fact that I had already reached a settlement agreement and provided payment information in good faith. After learning this, I immediately transferred the funds into my checking account so the payment could be processed as requested. The settlement payment of {$950.00} was then successfully processed on XX/XX/year>, resolving the matter. The call recordings maintained by XXXX XXXX XXXX should confirm that I disclosed the account was a savings account and that their representative stated that this would not be a problem. The delay in processing payment therefore resulted from the law firms handling of the payment method, not from any failure on my part to comply with the settlement agreement. Despite this settlement and the clear language that the balance was satisfied, LVNV Funding continues to report the account to the credit bureaus as open with a remaining balance of {$260.00}. This reporting is factually inaccurate because the debt was resolved through settlement, no remaining balance is legally owed, and account is now satisfied and closed. Additionally, LVNV Fundings servicer, Resurgent Capital Services, publicly states that when an account is paid or settled after credit reporting has begun, they will submit a request to delete the tradeline from the major credit bureaus once the payment has been successfully processed. My account was settled and paid. Despite this, the account was verified with the credit bureaus as open and showing a balance instead of being deleted. This directly contradicts Resurgents stated policy and results in inaccurate credit reporting. Reporting a balance after a settlement has been completed is misleading and inaccurate under the Fair Credit Reporting Act, which requires furnishers to report information accurately and requires credit bureaus to conduct a reasonable investigation when disputes are submitted. After discovering the inaccurate reporting, I initiated disputes through the credit reporting agencies. In those disputes I clearly stated that the debt had been settled through LVNV Fundings law firm and I provided the payment confirmation number given by the law firm they hired. Despite receiving this information, LVNV Funding repeatedly verified the account as accurate without correcting the balance or upholding their publicly promised settlement policy. Under the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ( b ) ), once a furnisher of information receives notice of a dispute from a credit bureau , it must conduct a reasonable investigation, review the relevant evidence provided by the consumer, and correct any inaccurate information. Verifying the accuracy of a balance that has been legally satisfied after being provided proof of settlement indicates that LVNV Funding either failed to conduct a reasonable investigation or knowingly continued to report inaccurate information. In addition, LVNV Funding is a debt collector and is subject to the Fair Debt Collection Practices Act. Reporting a balance that is no longer owed after settlement misrepresents the amount and legal status of the debt, implicating 15 U.S.C. 1692e ( 2 ) ( A ). Continuing to communicate credit information that is known or should be known to be false also raises concerns under 15 U.S.C. 1692e ( 8 ). The inaccurate reporting has already caused measurable financial harm. During a recent automobile financing process, lenders reviewing my credit report identified the collection account as still showing an outstanding balance. As a result, the financing process became significantly more burdensome and resulted in less favorable lending terms, including higher interest rates. Additionally, the inaccurate reporting caused the dealership to submit my application to multiple lenders in an effort to obtain approval under those conditions. This resulted in several hard inquiries on my credit report that would not have been necessary had the account been accurately reported as settled even, depite the fact there website states deletion after settlement. Had LVNV Funding accurately reported, I would have been aware of my credit standing beforehand and could have avoided applying for financing under inaccurate credit conditions. The inaccurate reporting therefore directly contributed to unnecessary credit inquiries and materially worse loan terms than I otherwise would have received. XXXX of Events XXXX XX/XX/year> Settlement agreement reached with XXXX XXXX XXXX for {$950.00}. XXXX XX/XX/year> Account and routing number provided ; savings account disclosed and confirmed acceptable during settlement call. Late XX/XX/year> Payment not processed ; discovered law firm would not withdraw from savings accounts despite prior confirmation. XX/XX/year> Settlement payment successfully processed after transferring funds to checking. After XX/XX/year> LVNV Funding continues reporting the account as open with a remaining balance of {$260.00}. REQUEST FOR INVESTIGATION DOCUMENTATION Because LVNV Funding verified the accuracy of this account after receiving disputes and documentation showing that the debt had been settled and satisfied, I request disclosure of the investigation conducted in response to those disputes. SPECIFICALLY, I request that LVNV Funding provide : * A description of the reasonable investigation conducted after receiving notice of my dispute from the credit reporting agencies. * Identification of the records reviewed during that investigation. * Identification of the individual or department responsible for verifying the account. * Documentation showing the basis for verifying that a {$260.00} balance remained owed despite the settlement payment made to XXXX XXXX XXXX. * Copies of any account notes, internal communications, or records reflecting the investigation and verification of the disputed information. * * Because I provided proof that the account had been settled and the balance satisfied, I am requesting clarification as to how LVNV Funding concluded that the balance remained accurate after reviewing this information. REQUEST FOR RESOLUTION I request that LVNV Funding immediately update this account to delete the tradeline entirely, consistent with the settlement agreement and LVNV/RESURGENT Fundings reporting obligations. NOTICE REGARDING POTENTIAL LIABILITY LVNV Funding has already received notice of this dispute and has been provided documentation confirming that the account was settled through its retained law firm, XXXX XXXX XXXX, and that the balance was considered satisfied upon payment of {$950.00}. Despite this notice, LVNV Funding has repeatedly verified the account as accurate while continuing to report an open remaining balance. Verifying and continuing to report information that is inaccurate after receiving documentation demonstrating that the balance was satisfied raises serious concerns regarding compliance with the Fair Credit Reporting Act, including 15 U.S.C. 1681s-2 ( b ). Under 15 U.S.C. 1681n and 1681o, furnishers may be held liable for actual damages, statutory damages, and attorneys fees when they negligently or willfully fail to comply with the requirements of the Fair Credit Reporting Act. The inaccurate reporting in this case has already resulted in measurable financial harm, including more burdensome lending conditions, higher interest rates during a recent automobile financing process, and multiple unnecessary hard credit inquiries. Additionally, reporting a balance that has been settled and satisfied may constitute a misrepresentation of the amount and legal status of a debt under 15 U.S.C. 1692e ( 2 ) ( A ) of the Fair Debt Collection Practices Act, as well as the communication of credit information known or which should be known to be false under 15 U.S.C. 1692e ( 8 ). Given the prior disputes, the documentation already provided, and the continued verification of inaccurate information, I am currently evaluating my legal options regarding LVNV Fundings compliance with the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. EVIDENCE PRESERVATION REQUEST Because this matter involves recorded settlement calls, payment records, and dispute investigations, I request that LVNV Funding and its agents preserve all relevant evidence related to this account, including but not limited to call recordings, internal account notes, dispute investigation records, payment records, and internal communications. CERTIFIED MAIL NOTICE A copy of this complaint and supporting documentation is being sent to LVNV Funding LLC and XXXX XXXX XXXX by certified mail with signature confirmation so that there is a clear record of receipt of the documentation referenced above.

Company response to consumer: Closed with explanation