Historic $10M Settlement Reached in Debt Collection Class Action

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Greenville, SC: Thousands of people have been forgiven their debts in a historical unfair business class action settlement reached Friday in Maryland. The class action lawsuit was brought by Jason Hauk and Freddy Velazquez who led the class action suit, against LVNV Funding LLC, a Greenville, SC-based company that buys consumer debt.

According to the terms of the settlement some 3,500 people in the class will receive about $2000 each, for a total of $7 million. The total settlement forgives about $10 million in debt, according to filings in U.S. District Court in Baltimore.

Further, LVNV will not pursue the 3,500 debtors in order to collect the debt, nor will they be able to sell those debts to other third party collection agencies. And LVNV have to remove information it gave to the major credit bureaus for each of those debtors, a step taken to improve their credit ratings. The settlement is being hailed as historic, and a major win for the class.

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Reader Comments

Posted by

You do not have to wait for the company to remove the information from you credit files. Send a copy of the lawsuit settlement to all three credit companies with a cover letter and they should be able to remove. Also there is a time limit for each state as to how long a bad or good closed account can state in your file. If the time limit is up the credit companies, Equifax, Transunion ad Experian, will remove the OLD information.

Posted by

Chase sent letter confirming debt forgiveness but LVNV and CACH have not filed to remove judgments they filed back in 2010 & 2011.

They have ruined my friends credit and seem empowered not to give a crap.

What can we do?

Posted by

i keept sending letter proof of dept i never rec'd anything back...they just keept sending collection letters from there sister companies

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