Consumer complaint received 2025-05-01 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Resurgent Capital Services L.P.
State: AL

Complaint narrative:
Introduction I am a consumer with no prior business or credit relationship with LVNV Funding, LLC ( LVNV ) or its affiliates. On XX/XX/year> LVNV placed a collection account on my credit reports with XXXX XXXX XXXX XXXX even though I never authorized any debt with LVNV or its original creditor. This unauthorized account appears to be a case of illegal debt parking, in which a debt buyer reports a delinquent account to credit bureaus without actually contacting the consumer. Federal law and CFPB Regulation F explicitly forbid this practice. LVNVs reporting of this debt is therefore inaccurate and unauthorized, and it violates multiple provisions of the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ), among other laws. 

Applicable Legal Protections and Violations My complaint is based on several federal statutes and regulations governing credit reporting and debt collection : * Fair Debt Collection Practices Act ( FDCPA ) : 15 U.S.C. 1692e ( 8 ) prohibits a debt collector from communicating credit information known or should be known to be false. By reporting a debt I never owed, LVNV has transmitted false credit information. Under 15 U.S.C. 1692e, any false or misleading debt collection communication is unlawful. LVNVs conduct in posting this debt without verifying its validity clearly violates this provision. In addition, FDCPA 807 ( 15 U.S.C. 1692f ) bars unfair or unconscionable collection practices; secretly parking a debt without notice to coerce payment is widely recognized as unfair and deceptive. 
* Fair Credit Reporting Act ( FCRA ) : 15 U.S.C. 1681s2 ( a ) ( 1 ) ( A ) forbids any furnisher of information ( like LVNV ) from providing information to credit reporting agencies if it knows ( or should know ) that the information is inaccurate. LVNV reported an account it had no legal right to report ; this information is false, and LVNV knew ( or should have known ) that it was inaccurate since I have no relation to the debt. FCRA also requires furnishers, upon notice of a dispute, to promptly investigate and correct errors ; I have notified the credit bureaus and LVNV of this error, yet the account remains.

* CFPB Regulation F ( 12 C.F.R. 1006.30 ( a ) ( 1 ) ) : This CFPB rule implements the FDCPA and explicitly prohibits debt parking. It states that a debt collector must not furnish debt information to a credit bureau before first communicating with the consumer about the debt. In other words, collectors can not send a debt to the credit bureaus until after they have mailed or spoken to the consumer. LVNV plainly violated 12 C.F.R. 1006.30 ( a ) ( 1 ) by sending this alleged debt to all three bureaus without any prior contact or validation.

* FTC Guidance : The Federal Trade Commission has warned that debt parking is an illegal practice and that collectors may not post debts to credit reports without first attempting to contact the consumer. LVNVs actions mirror the unlawful scheme described by the FTC : I only became aware of the alleged debt ( when applying for credit ), as many consumers do. This further demonstrates LVNVs use of a prohibited tactic.

* Identity Theft Protections : I am a confirmed victim of identity theft and have been affected by multiple data breaches. Under 15 U.S.C. 1681c2, when a consumer provides proof of identity theft, credit bureaus must block fraudulent items from the consumers report ( within 4 business days ). Despite these protections, LVNV has reported a fraudulent debt as if it were mine. The bogus account should have been blocked as identity theft rather than reported as legitimate. LVNVs failure to recognize and cooperate with this process violates the spirit of FCRAs identity theft safeguards.

Harm and Impact on the Consumer * Credit and Financial Harm : The false account has seriously damaged my credit profile. My credit scores have dropped significantly due to the newly reported delinquency, leading to loan and credit application rejections. This inaccurate negative mark has increased my borrowing costs and jeopardized my ability to secure credit.

* Emotional and Psychological Distress : Knowing that a debt I never incurred is tarnishing my credit causes extreme anxiety. I experience ongoing stress, sleepless nights, and fear that future lending or employment opportunities will be unfairly denied. The ordeal of having to dispute this error ( and possibly deal with identity theft ) has been emotionally exhausting.

* Reputational Harm : The unwarranted delinquency implies financial irresponsibility, which may harm my reputation with lenders, landlords, and even employers who might review credit. I fear LVNVs wrongful report could lead others to view me as having committed fraud or defaulted on debts I never owed.

* Time and Effort : I have spent extensive time gathering documents, disputing the account with the credit bureaus, and seeking to resolve this with LVNV. This has diverted me from work and personal responsibilities, and I have incurred costs ( such as credit monitoring fees and postage ) trying to correct LVNVs error. These harms are concrete and ongoing. The stress and inconvenience reflect the emotional distress that consumers increasingly face from abusive debt collection practices. Moreover, since LVNVs reporting is false, the financial and reputational damages are entirely unjustified.

Precedent and Similar Complaints LVNV Funding and its affiliated debt buyers ( like Resurgent Capital Services ) have faced numerous consumer complaints and lawsuits for similar conduct. The CFPB and FTC have frequently cited debt parking as a violation of consumer protection laws In fact, consumer complaint databases show multiple reports of LVNV placing unverified debts on credit reports ( often referred to by consumers as illegal or fraudulent reporting ). Courts have noted that falsely reporting debts, especially those obtained through questionable assignments, runs counter to the FDCPA and FCRA Although some court decisions focus on standing issues, regulators and advocates consistently view this pattern as unlawful. This context underscores that LVNVs actions are part of a broader abusive practice, not an isolated incident.

Company response to consumer: Closed with non-monetary relief