Sued by LVNV Funding LLC in Alabama? Here's What to Do Next
Alabama RESPONSE DEADLINE
30 Days
from the date you were served
STATUTE OF LIMITATIONS
6 Years
for typical LVNV Funding LLC debts in AL
WAGE GARNISHMENT
Allowed — up to 25%
What Alabama consumers say about LVNV Funding LLC
In the last 24 months, 2,103 Alabama residents filed CFPB complaints naming LVNV Funding LLC (across Resurgent Capital Services and CL Holdings). 76% of these complaints involve debt collection; 23% involve credit reporting or other personal consumer reports.
Most common complaint categories:
- 835 Attempts to collect debt not owed
- 328 False statements or representation
- 248 Incorrect information on your report
Source: CFPB Consumer Complaint Database , 24-month rolling window through May 2026.
About LVNV Funding LLC
LVNV Funding LLC is one of the largest debt buyers in the United States, operating as a subsidiary of Encore Capital Group. LVNV purchases portfolios of defaulted consumer debt — including credit cards, medical bills, and personal loans — for pennies on the dollar, then attempts to collect the full balance. LVNV is notorious for filing thousands of lawsuits annually against consumers, often with minimal documentation to prove they actually own the debt or that the amount is correct.
Type: Debt Buyer. Parent company: Encore Capital Group. Common debt types: credit card, medical, personal loan, auto deficiency.
CFPB Enforcement History
LVNV Funding and its servicer Resurgent Capital Services rank among the most-complained-about debt collectors in the CFPB Consumer Complaint Database, but the CFPB has not brought a major enforcement action specifically against LVNV or Resurgent. The volume of complaints is itself the documented pattern — consumers should still know LVNV must prove ownership of the debt and follow the FDCPA in every collection action.
Alabama-Specific Defenses Against LVNV Funding LLC
Statute of Limitations Defense
In Alabama, the statute of limitations for credit card debt is 6 years. If your last payment was more than 6 years ago, the debt is time-barred. LVNV Funding LLC has been the subject of CFPB findings related to suing on time-barred debts — check your dates carefully and raise the SOL defense in your Answer.
Lack of Standing / Chain of Title
As a debt buyer, LVNV Funding LLC must prove they actually purchased your specific account. Demand the complete chain of title — the purchase agreement, bill of sale, and assignment documents. In Alabama courts, failing to produce this documentation can result in dismissal.
Challenge the Amount
Demand a complete accounting from the original creditor's last statement through the current claimed balance. Any unauthorized fees, post-charge-off interest, or collection costs not in the original agreement should be disputed line by line.
Alabama Wage Garnishment Exemptions
75% of disposable earnings or 30x federal minimum wage, whichever is greater, is exempt.
Alabama Deceptive Trade Practices Act
In addition to the federal FDCPA, Alabama's Alabama Deceptive Trade Practices Act may provide additional protections and remedies against LVNV Funding LLC's collection practices.
Alabama Court System
Small claims limit is $6,000. Debt cases filed in district court or circuit court depending on amount. Filing fees in Alabama typically range $50-$300.
Common FDCPA Violations by LVNV Funding LLC
- Suing on time-barred debts where the statute of limitations has expired
- Filing lawsuits without proper chain-of-title documentation proving ownership of the debt
- Attempting to collect amounts that include unauthorized fees, interest, or charges not in the original agreement
- Failing to provide adequate debt validation when requested within 30 days
- Misrepresenting the character, amount, or legal status of the debt in collection communications
Statute of Limitations in Alabama
| Debt Type | SOL (Years) |
|---|---|
| Credit Card | 6 |
| Medical | 6 |
| Auto | 6 |
| Personal Loan | 6 |
| Written Contract | 6 |
| Oral Contract | 6 |
Frequently Asked Questions
Who is LVNV Funding LLC?
LVNV Funding LLC is a debt buyer owned by Encore Capital Group. They purchase defaulted debts from original creditors for a fraction of the original balance and then attempt to collect the full amount from consumers, often through lawsuits.
Can LVNV Funding sue me for old debt?
LVNV can file a lawsuit, but if the statute of limitations has expired in your state, you have an affirmative defense. LVNV is known for suing on time-barred debts. You must raise this defense in your Answer — the court will not do it for you.
Does LVNV Funding have to prove they own my debt?
Yes. LVNV must prove the chain of title showing the debt was properly assigned from the original creditor to them. Many LVNV lawsuits are filed with generic affidavits and lack proper documentation. Demanding proof of ownership is a strong defense strategy.
What happens if I ignore an LVNV Funding lawsuit?
If you do not respond by your state's deadline, LVNV will obtain a default judgment against you. This allows them to garnish your wages, freeze your bank accounts, and place liens on your property in most states.
Can I countersue LVNV Funding?
Yes. If LVNV violated the FDCPA — for example, by suing on time-barred debt, misrepresenting amounts, or failing to validate the debt — you may have grounds for a counterclaim. Statutory damages under the FDCPA are up to $1,000 per violation, plus actual damages and attorney fees.
How long do I have to respond to a debt lawsuit in Alabama?
You have 30 days from service to file your Answer with the court. Missing this deadline results in a default judgment.
What is the statute of limitations on credit card debt in Alabama?
6 years from the date of the last payment or charge.
Can they garnish my wages in Alabama?
Yes. Up to 25% of disposable earnings can be garnished after a judgment is obtained.
What courts handle debt lawsuits in Alabama?
District court handles cases up to $20,000. Circuit court handles larger amounts. Small claims court handles cases up to $6,000.
What happens if I ignore a debt collection lawsuit in Alabama?
If you don't file a written Answer within 30 days of being served, the collector can ask the court for a default judgment under Ala. R. Civ. P. 55. That judgment lets them garnish up to 25% of your disposable wages (Ala. Code § 6-10-7), levy your bank accounts, and place liens on non-homestead property. Default judgments in Alabama are good for 10 years and can be renewed. The better path is to file an Answer that denies the allegations and asserts defenses like statute of limitations under Ala. Code § 6-2-34, lack of standing, and failure to validate the debt under 15 U.S.C. § 1692g. Even a short Answer stops the default and forces the collector to actually prove they own your debt, that the amount is correct, and that the chain of assignment is documented. Many debt-buyer cases collapse at that stage because the plaintiff cannot produce the original signed agreement or a complete account history.
Can a debt collector sue me in Alabama for a debt from another state?
Federal law controls where the suit can be filed. Under 15 U.S.C. § 1692i, the collector must sue in the judicial district where you signed the original contract or where you currently live. If you signed a credit card application in Georgia but now live in Mobile, the collector must sue you in Mobile County, not Georgia. Suing in the wrong venue is a per se FDCPA violation that can give you a counterclaim worth up to $1,000 in statutory damages plus actual damages and attorney's fees under 15 U.S.C. § 1692k. The substantive law that applies to the debt may still be the state of contracting (often listed in a choice-of-law clause), but Alabama's six-year SOL under Ala. Code § 6-2-34 applies to the suit itself as the forum state. If the collector picked a wrong venue, raise it immediately in your Answer or by motion to dismiss or transfer.
How does Alabama treat zombie or time-barred debt?
Alabama's six-year statute of limitations on written contracts and open accounts (Ala. Code § 6-2-34) starts to run from the date of default, typically the date of the last payment. Once the six years run, the debt is time-barred and a collector who sues anyway is asserting a claim they cannot legally enforce, which violates 15 U.S.C. § 1692e(2) and § 1692f(1) of the FDCPA and CFPB Regulation F (12 CFR § 1006.26). Be careful: Alabama allows revival of a time-barred debt by a new written promise to pay under Ala. Code § 6-2-13, but a partial payment alone generally does not restart the clock for a fully time-barred debt. If a collector sues you on an old debt, raise the statute of limitations as an affirmative defense in your Answer and consider filing an FDCPA counterclaim.
What property can I protect from a debt collector in Alabama?
Alabama has fairly limited exemptions compared to many states. Under Ala. Code § 6-10-6, you can claim up to $1,000 in personal property as exempt from execution; the state homestead exemption is $5,000 (or $10,000 for a married couple) on up to 160 acres under Ala. Code § 6-10-2. Wages enjoy the federal floor: under 15 U.S.C. § 1673 and Ala. Code § 6-10-7, only the lesser of 25% of disposable earnings or the amount above 30 times the federal minimum wage can be garnished. Social Security, SSI, VA benefits, and most public assistance are federally protected from garnishment under 42 U.S.C. § 407. To assert exemptions after a judgment, file a claim of exemption with the court. Don't wait for the collector to honor exemptions on their own; bank levies often require an affirmative motion to release exempt funds.
Do I need to send a debt validation letter in Alabama?
Yes, and it is one of the most useful tools you have. Under 15 U.S.C. § 1692g, any third-party debt collector must send you a written validation notice within five days of first contact, telling you the amount, the current creditor, and that you have 30 days to dispute the debt in writing. If you dispute within that 30-day window, the collector must stop collection activity until they mail you verification, including documents showing the original creditor, the amount owed, and proof of assignment if the debt was sold. CFPB Regulation F (12 CFR § 1006.34) requires the validation notice to include itemization, statement dates, and a tear-off dispute form. Even if 30 days have passed, you can still dispute under § 1692g(b) at any time, and a written dispute creates leverage when the collector tries to collect or sue. Send disputes by certified mail with return receipt and keep a copy.
Sued by LVNV Funding LLC in Another State?
LVNV Funding LLC files cases nationwide. Select your state for the response deadline, statute of limitations, and state-specific defenses.
Sued by a Different Collector in Alabama?
The 30-day Alabama response deadline applies no matter who sued you. Pick the creditor on your summons for creditor-specific defenses.
This page summarizes public information from the CFPB Consumer Complaint Database, CFPB enforcement records, and Alabama state law. It is not legal advice. Statutes and court rules change — consult a licensed attorney in Alabama for guidance on your specific case.
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