Who is Resurgent Debt Collector?
Resurgent Capital Services, often simply referred to as Resurgent, is a subsidiary of Sherman Financial Group, one of the largest and most diversified companies in the consumer finance industry. Founded in the late 1990s, Resurgent has quickly grown to become a significant entity in the debt buying and collections sector.
Here’s a deeper dive into their operations:
Business Model
Resurgent’s primary operation revolves around purchasing charged-off consumer debt. This means they buy debts that original creditors have deemed uncollectible and have written off their books. By purchasing these debts at a fraction of the original owed amount, Resurgent aims to profit by collecting more than what they paid.
Type of Debts
Resurgent deals with a variety of debts, including credit card debt, medical bills, personal loans, and more. Their vast portfolio allows them to tap into different segments of the debt market.
Operational Reach
While headquartered in Greenville, South Carolina, Resurgent operates across the United States. Their wide reach means they deal with a diverse range of consumers and debts.
Affiliations
As mentioned, Resurgent is a subsidiary of Sherman Financial Group. This affiliation provides them with a robust infrastructure and resources to operate on a large scale. Sherman Financial Group has other subsidiaries and operations that complement Resurgent’s business, creating a comprehensive ecosystem in the debt buying and collections world.
Consumer Interactions
Resurgent is known for its consumer-centric approach. They offer various options for consumers to settle their debts, including payment plans and sometimes debt reductions. However, like all debt collectors, they have faced criticisms and complaints, which is not uncommon in the industry given the nature of the business.
| Fact | Description |
|---|---|
| Founded | Late 1990s |
| Headquarters | Greenville, South Carolina |
| Parent Company | Sherman Financial Group |
| Types of Debt | Credit card, medical bills, personal loans, etc. |
| Operational Reach | Nationwide |
It’s essential for consumers to be informed about any entity they interact with, especially in the financial sector. If you ever find yourself dealing with Resurgent or any other debt collector, understanding their background and operations can provide a clearer picture and better equip you to handle the situation.
The Tactics They Use
Debt collectors, including Resurgent, employ a range of tactics to recover the amounts owed. While many of these methods are standard and legal, it’s crucial for consumers to be aware of them to ensure they’re not being subjected to any unfair practices. Here’s a breakdown of some common tactics used by Resurgent and other debt collectors:
Initial Contact
Resurgent typically starts the collection process by sending a letter to the debtor. This letter outlines the original creditor, the amount owed, and provides a window (usually 30 days) for the consumer to dispute the debt.
Phone Calls
If the debt isn’t disputed or settled after the initial letter, phone calls begin. Resurgent’s representatives will call the debtor to discuss the debt, offer payment plans, or negotiate a settlement.
Payment Plans
Recognizing that not everyone can pay off their debt in one lump sum, Resurgent often offers payment plans. These plans allow debtors to pay back their debt in installments over a specified period.
Settlement Offers
In some cases, Resurgent might offer to settle the debt for less than the full amount owed. This is especially common for older debts where the chances of full recovery are slim.
Credit Reporting
If a debt remains unpaid, Resurgent may report it to the major credit bureaus, which can negatively impact the debtor’s credit score.
Legal Action
As a last resort, if the debt is substantial and there’s a reasonable chance of recovery, Resurgent might opt for legal action. They could file a lawsuit against the debtor, seeking a judgment that allows them to garnish wages or levy bank accounts.
Skip Tracing
If Resurgent can’t reach a debtor because they’ve moved or changed their contact information, they might employ skip tracing. This involves using databases and other resources to locate individuals.
Table: Common Tactics Used by Resurgent
| Tactic | Description |
|---|---|
| Initial Contact | Letter outlining the debt details |
| Phone Calls | Discussing, negotiating, or setting up payment plans |
| Payment Plans | Allowing debtors to pay in installments |
| Settlement Offers | Offering to settle for less than the owed amount |
| Credit Reporting | Reporting unpaid debts to credit bureaus |
| Legal Action | Filing lawsuits for debt recovery |
| Skip Tracing | Locating hard-to-find debtors |
It’s essential to note that while these tactics are standard in the debt collection industry, there are laws in place, like the Fair Debt Collection Practices Act (FDCPA), that protect consumers from harassment, misrepresentation, and other unfair practices. If you believe a debt collector is violating your rights, it’s crucial to document the incidents and consider seeking legal advice.
Consumer Rights Against Debt Collectors
Resurgent, like all debt collectors in the U.S., is regulated by the Fair Debt Collection Practices Act (FDCPA). This federal law provides protections to consumers against certain aggressive or deceptive debt collection practices. Here’s what you should know:
Initial Contact
When a debt collector first contacts you, they must send you a written “validation notice” within five days. This notice should tell you how much you owe, the name of the creditor, and what to do if you believe you don’t owe the money.
Disputing the Debt
If you believe you don’t owe the money or the amount is incorrect, you can send the debt collector a letter disputing it. Once they receive your letter, they must stop all collection activities until they send you proof of the debt.
Harassment or Abuse
Debt collectors cannot harass, oppress, or abuse you. This includes making threats of violence, using obscene language, calling repeatedly to annoy you, or calling at inconvenient times (before 8 a.m. or after 9 p.m. unless you agree to it).
False Statements
Debt collectors cannot lie or make false statements. They can’t falsely claim to be attorneys or government representatives, claim you’ll be arrested, or misrepresent the amount you owe.
Unfair Practices
Debt collectors cannot engage in unfair practices. This includes trying to collect any amount not permitted by law, depositing a post-dated check early, or threatening to take your property unless they can legally do so.
Third-party Contact
They can’t discuss your debt with anyone other than you, your spouse, or your attorney. However, they can contact other people to find out your address, home phone number, or where you work.
Stopping Contact
If you send a letter to the debt collector asking them to stop contacting you, they must stop, with a few exceptions. This won’t erase the debt, but it will stop the contact.
| Consumer Right | Description |
|---|---|
| Right to Validation of Debt | Collectors must provide written validation of the debt upon request. |
| Right to Dispute the Debt | Consumers can dispute the debt if they believe it’s not theirs or the amount is incorrect. |
| Protection from Harassment | Debt collectors cannot harass, oppress, or abuse any person while attempting to collect a debt. |
| Protection Against Misrepresentation | Collectors cannot lie or use deceptive practices to collect a debt. |
| Right to Privacy | Collectors cannot discuss the debt with anyone other than the debtor, their spouse, or attorney. |
| Right to Cease Communication | Consumers can request that collectors stop contacting them, except to notify of legal action. |
| Protection from Unfair Practices | Collectors cannot use unfair or unconscionable means to collect a debt. |
| Right to Sue | Consumers can sue a collector in court if they believe their rights have been violated. |
It’s essential to be aware of these rights. If you believe a debt collector, including Resurgent, has violated any of these rights, you can take legal action against them. Additionally, you can report any issues to the Consumer Financial Protection Bureau (CFPB) and your state’s attorney general office.
Controversies and Legal Battles
Debt collection agencies, including Resurgent, often find themselves in the spotlight due to various controversies and legal battles. These issues typically arise from alleged violations of consumer protection laws, especially the Fair Debt Collection Practices Act (FDCPA).
Alleged Harassment
One of the most common complaints against debt collectors is harassment. Some consumers have reported receiving multiple calls a day, often at inconvenient times, even after requesting the calls to stop.
Misrepresentation of Debt
There have been instances where debt collectors allegedly inflated the amount owed or tried to collect on debts that had already been paid or were past the statute of limitations.
Lawsuits and Settlements
Resurgent, like many other debt collection agencies, has faced lawsuits from consumers and regulatory bodies. These lawsuits often revolve around alleged violations of the FDCPA, such as not providing debt validation or using prohibited collection tactics.
Communication with Third Parties
Another area of contention is the unauthorized communication with third parties. The FDCPA prohibits debt collectors from discussing a consumer’s debt with anyone other than the consumer, their spouse, or their attorney. However, there have been reports of collectors contacting neighbors, employers, and even family members.
Threats of Legal Action
Some consumers have reported that they received threats of legal action, wage garnishment, or property seizure, even when such actions were not legally permissible or intended.
It’s essential to note that while there are many complaints and controversies surrounding the debt collection industry, not every claim results in a finding of wrongdoing. However, the frequency of these issues underscores the importance of consumers knowing their rights and being vigilant when dealing with debt collectors.
How to Deal with Resurgent
Navigating the waters of debt collection can be intimidating, especially when dealing with large entities like Resurgent. However, being informed and proactive can make a significant difference. Here’s what you should know:
1. Know Your Rights: As mentioned earlier, the Fair Debt Collection Practices Act (FDCPA) provides consumers with a range of rights. This includes the right to dispute a debt, the right to demand debt validation, and the right to limit communication methods.
2. Keep Records: Whenever you communicate with Resurgent or any other debt collector, keep a record. This includes saving letters, noting down the date and time of phone calls, and even recording calls (with proper consent, as per your state’s laws).
3. Request Debt Validation: If you’re unsure about the legitimacy of the debt or believe there might be an error, you have the right to request validation. Resurgent must then provide proof of the debt.
4. Negotiate: If the debt is legitimate and you’re in a position to pay, consider negotiating. Many debt collectors, including Resurgent, might be willing to settle for a lesser amount or offer a payment plan.
5. Avoid Admitting to the Debt Over the Phone: Until you’re sure about the debt’s legitimacy and your next steps, avoid making any admissions over the phone. This can be used as an acknowledgment of the debt.
6. Seek Legal Counsel: If you believe Resurgent is violating your rights or if you’re facing a lawsuit, it might be wise to consult with an attorney specializing in consumer rights or debt collection defense.
7. Report Violations: If you believe Resurgent or any other collector is violating the FDCPA, you can report them to the Consumer Financial Protection Bureau (CFPB) or your state’s attorney general.
Understanding the tactics and strategies of debt collectors can empower consumers to handle such situations more confidently. Remember, while debts should be addressed, consumers also have rights that protect them from harassment, misrepresentation, and other unfair practices.
In the complex world of debt collection, knowledge truly is power. By understanding who Resurgent Debt Collector is, their tactics, and your rights as a consumer, you can navigate any interactions with confidence and clarity. Remember, while it’s essential to address outstanding debts, it’s equally crucial to ensure you’re treated fairly and within the bounds of the law. If you found this article enlightening, be sure to explore our blog for more insights into finance, consumer rights, and other pertinent topics. And if you believe this information can benefit others, don’t hesitate to share. Knowledge shared is empowerment multiplied!
