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Merchants Credit /LVNV


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Ok I have a collection notice from

Merchant's Credit Guide. And I'm a little confused.

It says on the top Merchant's Credit Guide

Account # xxxxxx

Our Client LVNV Funding LLC

Original Creditor Providian Financial Corp

Original Account Number XXXXX

Just looked at all my credit reports and currently it is not being reported on my credit reports that i pulled last night thu True Credit. The original creditor is not even on my credit reports.

Now i want to send a DV letter but whom do i send that to? Merchant's credit or LVNV.

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Division of Credit Practices

Bureau of Consumer Protection

September 16, 1993

Stuart K. Pratt

Director, State Government Relations

Associated Credit Bureaus

1090 Vermont Ave., N.W.

Suite 200

Washington, D.C. 20005-4905

Dear Mr. Pratt:

This is in reply to your letter of August 16, 1993 concerning whether a debt collector is covered by the Fair Debt Collection Practices Act when it purchases defaulted accounts from the original creditor.

We consider the purchase of a defaulted account “. . . an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another." See Section 803(4) of the Act. As such, we do not believe that such a purchase removes the debt collector from Act coverage with respect to that account because it does not make the debt collector a creditor under Section 803(4). I hope this has been helpful.

Your interest in writing is appreciated. Please be aware that since this is only the opinion of Commission staff, the Commission itself is not bound by it.


John F. LeFevre


Division of Credit Practices

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Load the gun and take them OUT!!!

A holder who does not give value cannot qualify as a holder in due course.

UCC 3-303;1(1).

a national bank, under federal law being limited in its powers and capacity, cannot lend its credit by guaranteeing the debts of another. All such contracts entered into by its officers are ultra vires” Howard & Foster Co. v. Citizens Nat’l Bank of Union, 133 SC 202, 130 SE


[a) ultra vires] ~ Black Law 7th edition pg 1525 unauthorized beyond the scope of power allowed or granted by a Corporate Charter or by Law. Officers was liable for the firm’s ultra vires action .

the bank is allowed to lend money upon personal security; but it must be money that it loans, not its credit.” Seligman v. Charlottesville Nat. Bank, 3 Hughes 647, Fed Case No.12, 642, 1039

Provide Copy of [Collateral] Agreement for Alleged Loan’s

“In the federal courts, it is well established that a national bank has no power to

lend its credit to another by becoming surety, endorser, or guarantor for him.”

Farmers and Miners Bank v. Bluefield Nat ‘l Bank, 11 F 2d 83, 271 U.S. 669.xdancex

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Send your DV letter to Merchant's Credit Guide. Chances are that the account will be retuned to LVNV Funding who will assign the account to another collection agency. Then DV the next collection agency. If you send the DV to LVNV Funding you may force the JDB to take a closer look at your account...

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I'm a little confused about the two posts by Roco.

I'll address this subject one time only;

There is a group of fringe wackos who have come up with the spin that banks are stealing money from you and the Fed when they issue credit cards.

They claim that when you get a credit card, the bank generates a phony promissory note in the amount of your credit line and uses that to borrow money from the Fed, then uses that money for their own purposes.

Then, they go on to claim that since the bank has done this, you don't really owe them any money when you make a charge on your credit card because your using your own money.

The scheme varies according to whichever nutjob is telling the story, but that's pretty close.


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My advice has always been to DV the JDB who owns the debt and not their hired gun CA, especially in the case of LVNV. If you DV the CA they will go away and then LVNV will simply pass it on to another CA ad infinitum and legally so. If you directly DV LVNV CMRRR then they will be guilty of continued collection activity if they once again pass it to another CA. Believe me folks, LVNV does not want to see the light of day and if you point out to them in your DV that passing it on constitutes continued collection activity they stop. Let them know up front you know what you are talking about.

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