LVNV Funding is one of the largest debt-buyer creditors in the country and part of the Resurgent Capital Services umbrella. LVNV frequently sues consumers in New York and New Jersey and uses a wide variety of debt collection law firms such as: Forster & Garbus, Tromberg Morris & Poulin, Kirschenbaum & Phillips, and Fein Such Kahn and Shephard. LVNV often obtains default judgments leading to additional judgment interest and marshal’s fees to accrue. They commonly freeze bank accounts, garnish wages, and even place liens on real property if the debt is high enough. It is extremely important to prevent a default judgment by submitting an answer and defenses against LVNV which forces them to prove the merits of their case. Alternatively, if a default judgment is obtained then a Order to Show Cause to Vacate the default judgment must be filed within 1 year after learning about it. A meritorious defense and reasonable excuse must be shown to vacate the default judgment and re-open the case.
Recently, we were retained by a client who had a default judgment placed against her by LVNV Funding. Forster and Garbus was the law firm representing LVNV in this case and it seems as though the process server who was hired to serve the original lawsuit served the incorrect address cause a default judgment to be entered. We filed an order to show cause to vacate the default judgment showing that service was improper and that our client had multiple defenses including standing and privity. Her primary defense was that LVNV funding was not a creditor she knew or obtained any debt from and did not believe that they would be able to provide the necessary assignment documents proving ownership of the debt. However, Forster and Garbus contacted us to resolve the matter via settlement before the court date came around. We were able to reduce the balance owed by almost 70% and the client did not have to spend additional fees on litigation or risk losing the case.