Consumer complaint received 2025-07-10 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Resurgent Capital Services L.P.
State: TX

Complaint narrative:
To Whom It May Concern, This letter is a formal dispute and demand for validation pursuant to my rights under federal law. I am writing in regard to the continued reporting of a negative item associated with the above-referenced account by LVNV Funding LLC to the credit reporting agencies. I believe this reporting is inaccurate, unverifiable, and in violation of several federal consumer protection statutes and tax regulations. 

XXXX. Alleged Debt Was Charged-Off Tax and Legal Implications It is my understanding that this account was previously charged off by the original creditor. According to IRS Publication 4681 and the Internal Revenue Code ( 26 U.S.C. 61 ( a ) ( 12 ) ), when a creditor charges off a debt and issues a Form 1099-C for cancellation of debt income, they may no longer claim the debt as an asset. If this debt has been charged off and sold to LVNV Funding for pennies on the dollar, the original creditor has likely taken a tax benefit or write-off, which raises significant questions about whether the debt has any legitimate collectible value. 

Furthermore, IRS guidance confirms that debt which has been charged off and forgiven can not be resold as a legitimate collectible asset without full documentation and legal transfer. As such, LVNV Funding must prove that the alleged debt was not forgiven, settled, or otherwise discharged for tax purposes. 

XXXX. Ownership and Standing Green v. Portfolio Recovery Associates In the case of Green v. Portfolio Recovery Associates, LLC, 2:15-cv-00483, the court emphasized that a debt collector must show evidence of ownership of the alleged debt in order to have legal standing to collect or report it. Simply alleging ownership is insufficient. 

You are hereby requested to provide documented proof that LVNV Funding owns this alleged debt and has legal standing to report or collect it. This includes : Forward Flow Agreement between the original creditor and LVNV Funding Chain of Assignment and transfer records from the original creditor through any intermediate entities to LVNV Purchase Agreement with a breakdown of the portfolio and this specific account Proof of Insurance Claim filed on this alleged defaulted debt, if applicable Signed Contract or Agreement bearing my signature indicating my consent to the terms of the original debt and any alleged assignment XXXX. Failure to Meet FDCPA and FCRA Requirements Under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g, and the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( b ), debt collectors are required to : Provide proper and timely validation of the debt upon request Accurately report only verified and substantiated debts to credit bureaus Refrain from reporting unverifiable or disputed debts LVNV Funding has failed to provide such verification, yet continues to report this account, which may constitute willful noncompliance under FCRA 1681n and FDCPA 1692e for misleading representation.

4. Request for Immediate Action Accordingly, I am formally requesting the following : Immediate deletion of the disputed account from all credit bureaus ( XXXX, XXXX, XXXX ) A complete validation package, including all requested documentation listed above Cease and desist all collection efforts until proper documentation is provided If you are unable to provide these materials within 30 days, or if you continue to report this unverifiable item, I will not hesitate to pursue all available legal remedies, including but not limited to complaints to the Consumer Financial Protection Bureau ( CFPB ), Federal Trade Commission ( FTC ), and my State Attorney General. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation