Average personal loan debt: $8,018. Personal loans are unsecured debt governed by the original loan agreement and state law. If in collections, FDCPA applies. Many collection agencies lack original documentation.
Common Cavalry SPV Violations
Filing lawsuits without proper documentation
Misrepresenting amount owed due to added fees
Failing to dismiss cases when debt is validated as incorrect
Personal Loan Debt Dispute Strategies
1
Demand debt validation under FDCPA
2
Check statute of limitations in your state
3
Verify the amount is correct
4
Negotiate settlement if valid
5
Dispute credit reporting errors under FCRA
Tips Against Cavalry SPV
Cavalry is a special purpose vehicle — demand proof of debt purchase
Always answer lawsuits — default judgments are hard to overturn
Request dismissal with prejudice if they can't produce documentation