Debt From Resurgent Capital Services?
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Who Is Resurgent Capital Services
Like many debt collection agencies, the practices of Resurgent Capital Services has come into question on more than one occasion. The company is a debt collector for creditors and a third-party debt buyer. This means they purchase debts for less than what they are worth and then try to make money by collection the full amount of the debt.
Resurgent Capital Services has offices in South Carolina and Ohio, and is a subsidiary of the Sherman Financial Group, one of the largest debt collection conglomerates in the world. According to information from the US Consumer Financial Protection Bureau, there were more than 700 complaints filed against Resurgent Capital Services in the period between July 2013 and September 2014. Those filing complaints stated the debt collector had:
- Made false attempts or representations about debts
- Continued collection efforts on debts that were no longer valid
- Took or threatened to take legal action against debtors
- Continued to make contact with debtors after written requests were made to cease contact
- Shared information improperly with third parties
- Made improper contact about debts
- Refused to provide verification of debts
According to the Better Business Bureau, more than 3000 complaints against Resurgent Capital Services had been closed over the course of three years ending in the fall of 2014. More than 1200 of those cases were closed within a 12 month period. Closed cases indicate the company is question has resolved the issue in accordance with the BBB’s guidelines, but not that a consumer is satisfied with the results.
The BBB listed concerns against Resurgent Capital Services as including issues with billing and collection issues, guarantee and warranty issues, problems with products and services, and issues with advertising and sales (general categories into which violations with the BBB are ordered).
Resurgent Capital Services’ Affiliates
The Sherman Financial Group, the umbrella company under which Resurgent operates, was required to pay $175,000 in May of 2014 to New York State in response to civil penalties and costs due to its improper debt collection activities in the state.
A similar penalty was levied in July 2012 between Resurgent Capital Services, the Maryland State Collection Agency Licensing Board, and LVNV Funding LLC, another of Sherman’s subsidiaries. The companies dismissed 3500 lawsuits it had filed against consumers for more than $7.7 million in Maryland courts. The companies were also required to apply credits of nearly $4 million to the accounts of more than 6200 consumers whose cases were settled or adjudicated. Finally, the companies were forced to pay a penalty of $1 million to Maryland.
What to Do
As a consumer facing debt collection efforts by Resurgent Capital Services, you have several options. The important thing is you not ignore any contact from Resurgent Capital Services, even if you believe a debt to be invalid. Even if you are not responsible for the debt, you must file a response to the action. Failing to do so allows the court will find in favor of Resurgent Capital Services, making you responsible for a potentially invalid debt.
For more information or to schedule a consultation about issues you’re having with Resurgent Capital Services, contact us at 1.800.220.4318 for more information.
What Happens With a Judgment?
Your Bank Account Can Be Frozen and Emptied by Many Judgment Creditors
A Judgment Can Often Cloud Title on Your Homestead Property
A Judgment is Published on your Credit Report as a “Public Record”
With a Judgment, certain property can be sold at auction to pay towards the judgment
Do I Need a Lawyer?
The vast majority of collection lawsuits end up with a judgment against the consumer. This is primarily because the consumer did nothing to protect themselves or they attempted to defend the lawsuit themselves.
Most of our cases are dismissed by the creditor prior to trial or we reach a favorable settlement for our clients depending on the circumstances of their situation.
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