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Sued By Calvary SPV?

You’ve just been served with a lawsuit from Calvary SPV, and your first question is …. “who is Calvary SPV?” and your second question is “what do I do now?”.  Let’s address each question in some detail.  For the first question, Who is Calvary? its a pretty simple answer.     Calvary SPV is a very large debt buyer who purchases delinquent credit card accounts for pennies on the dollar and then tries to collect 100% of what is owed.  They purchase these accounts at a substantial discount and then come after consumers like you for the full balance.  These purchases are often made electronically such that a large volume of credit card accounts can be transferred at the touch of a button.  We frequently see sales of 5,000, 10,000,  20,000 or more.  This is a perfectly legal endeavor and it happens on a daily basis.  Credit card companies like HSBC, Capital One, Bank of America and Chase often sell their defaulted credit card accounts rather than pursing individuals through the collection process.  At the time of this writing, Calvary is in what we at our firm call one of the “big 4″…the four largest  debt buyers that we deal with (along with LVNV, Midland Funding and Portfolio Recovery Associates).

The second question, “what do I do now” has a few correct answers, but some are more correct than others.  Let’s start with the WRONG answer.  The wrong answer is to put your head in the sand and do nothing.  Believe it or not, this is a very common response from consumers and frankly I cannot understand it.  If you are being sued, the last thing that you want to do is ignore the lawsuit.  The next WRONG answer is to contact a debt settlement company.  This is also a very common response and I can understand the thinking here.  You hear a great radio ad about this company that can help you get out of debt.  You’ve been meaning to call them and now that you are sued, this is the perfect time to call.  Again, this is the WRONG answer.  Debt Settlement companies, at least 99% of the ones that my clients have dealt with, are not worth the exhorbitant fees that you pay them, or worse yet, are scams.  Granted, there are a few debt settlement companies out there that are legitimate, but in my experience, they are few and far between.  The next WRONG answer is to contact Calvary SPV directly yourself.  This, quite frankly, may be worse that doing nothing.  This puts you in the position of dealing with a debt buyer directly without representation.  You will be taken advantage of, that is a fact.

Now, for the RIGHT answer, you should consult with a consumer attorney, especially here in Pennsylvania.  Any good consumer attorney is going to tell you to defend, defend, defend.  It sounds self serving, I know, but it is the correct course of action 99% of the time.  I mentioned earlier that Calvary buys thousands of these accounts at a time.  Well, when they make these purchases they make them on an AS IS basis.  This means that they have no way of knowing if the information that they receive from the original creditor is legitimate, accurate, or authentic.  On top of that, how much information do you think they get for something that they paid 2 cents on the dollar?

There are limited times when I tell a consumer to settle with Calvary.  The first is if there is an urgency to clean a credit report, say for a job or home purchase.  The second is where the debt is very small.  If they are suing you for $500-600, it may be more cost effective to settle at a discount rather than to defend.  Having said that though, you should still consult with a consumer attorney on any Calvary lawsuit.

As always, we offer free consults on debt buyer lawsuits.  Call our office at 412-823-8003 or email your inquiry using the contact page on this site.


Credit Card Lawsuits

If you are faced with a credit card lawsuit, whether its an original creditor or a junk debt buyer, contact my office at 412-823-8003 right away. We offer a free, no obligation review of any credit card based lawsuit that is filed in PA.

FDCPA Attorneys

Many Debt Collectors threaten people, that's a fact. Threats of wage garnishment, jail, fraud charges and contacting employers, friends and relatives happens every day to people just like you. The truth is that most of these threats are illegal. If a debt collector is threatening you, contact our office at 412-823-8003 for a free initial consultation.