After Fernando received a notice in the mail, he appeared at the courthouse in the next town over. He showed the judge a notice from LVNV, a debt collection company. LVNV’s letter said he owed over $3,000 on a loan he’d taken out from Cross River Bank more than three years ago. But Fernando hadn’t borrowed money from Cross Bank. It was a case of identity theft.
According to NerdWallet, Cross River Bank issues credit cards to people without confirming their identity. According to the Wall Street Journal, the Federal Deposit Insurance Corporation (FDIC) found in 2023 that Cross River Bank had engaged in “unsafe or unsound banking practices”—around the same time LVNV took over the loan in Fernando’s name.
The judge listened to Fernando’s story. Then, he postponed the hearing and referred Fernando to Lone Star Legal Aid.
Yolanda Gongora works in LSLA’s Waco Office. When Fernando called, he spoke to her in Spanish. Ms. Gongora also speaks Spanish. She was able to translate Fernando’s needs to attorney Christopher Chance. Gongora is a paralegal. She and Chance decided to work together on the case.
Fernando needed help completing an Affidavit of Identity Theft – in English. Under the supervision of attorney Chance, Gongora helped Fernando complete the form. She also notarized the form and sent it to LVNV’s attorney with a request for proof of receipt.
This kind of debt “is called Zombie Debt,” says attorney Chance. Because it’s “old debt brought back to life.” Companies like LVNV buy old debt and try to collect on it.
According to the New York Times, debt collection lawsuits are on the rise. “LVNV Funding more than tripled its filings from 2019 to 2024, [one] report said. The increase ‘far outpaces any other debt collector in our data set,’ January Advisors reported.”
Fernando received a letter about a loan he never took out, never even applied for. He followed the correct procedure and appeared before the court. Thankfully, the judge understood that Fernando was likely the victim of identity theft. The judge referred Fernando to Lone Star Legal Aid.
With the help of LSLA attorney Christopher Chance and paralegal Yolanda Gongora, Fernando was able to show that he was not responsible for repaying the mysterious debt. He was able to return to his life without suffering punishment for something he didn’t do.
Learn more about identity theft at Texas Law Help, here.