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How to Settle a Sherman Financial Group Lawsuit

George Simons | January 29, 2025

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: To settle a lawsuit with Sherman Financial Group, respond to the Summons promptly, request proof of debt ownership and timeliness, and negotiate a repayment plan. Solo can help with all this and more.

Debt collection is a standard process that creditors or third-party agencies like Sherman Financial Group use to recover money owed by individuals. When you fall behind on payments, debt collectors contact you and try to settle the outstanding balance. While this is part of their responsibility, it's important to understand your rights and how the process works.

For instance, when a debt collector takes you to court, the burden of proof is on them to show that you indeed owe the debt. Often, they are unable to provide enough evidence. When you ask them to prove the debt, you may be able to resolve the situation in your favor.

Instead of ignoring a lawsuit or feeling overwhelmed, take action. Respond to the court notice and ask the debt collector to prove their claim. This article will discuss how to respond to Sherman Financial Group’s lawsuit and settle the debt outside of court.

Settle debt with Sherman Financial Group

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

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What is Sherman Financial Group, and who do they collect for?

Sherman Financial Group, LLC is a massive debt collection company that purchases and administers consumer debt that has gone into default. The company buys the debt from credit card companies, phone companies, student loan providers, mortgage banks, and other businesses with consumers who cannot pay their bills.

They acquire these debts at a discounted price and then work to collect them through their subsidiaries, including LVNV Funding and Resurgent Capital Services. These subsidiaries may handle the day-to-day collection efforts or may hire other third-party collection agencies to pursue the debt further​.

Sherman Financial Group also plays a role in legal actions associated with debt collection, often filing lawsuits and pursuing garnishments for unpaid debts. Their contact information is as follows:

Address: 335 Madison Avenue, 23rd Floor, New York, NY 10017

It pays for the debt at a very low price (often pennies on the dollar) and makes its money by keeping the difference once it gets the money from the debtor. Not surprisingly, that business plan motivates Sherman Financial to be persistent in collecting from debtors.

Sherman Financial Group is owned by Sherman Capital, and it owns many debt collection subsidiaries including Sherman Originator and Sherman Acquisition. Also, it is affiliated with companies called Resurgent Capital Services, LVNV Funding, and Allegis Group.

Are you confused by all the companies? You should be. Many financial organizations operate through multiple subsidiaries for business and legal purposes. This structure can sometimes make it challenging for consumers to identify which company is managing their debt. While Sherman Financial Group and its subsidiaries have faced scrutiny in the past, including settlements related to debt collection practices, they continue to operate within a regulated industry.

Understanding these structures and your rights as a consumer is key to navigating these situations effectively.

Sued for debt? Stand up for your rights.

Ask Sherman Financial Group to prove these two things in your response

As noted earlier, the key to improving your chances of winning a lawsuit from Sherman Financial Group in court is to ask them to prove their case against you.

There are two requests for proof that will allow you to have a fair outcome in Sherman Financial Group’s lawsuit against you.

  • First, in your response, you ask for evidence, for documentation, showing that Sherman Financial Group owns the alleged debt that it says you owe. Because Sherman Financial does not typically originate loans, nor does it have a credit card, it must have purchased your debt from someone else. You should demand proof of that transaction. If Sherman Financial cannot come up with the documentation to show that it owns your alleged debt, then you win.
  • Second, you need to demand that Sherman Financial prove that it filed its lawsuit within the necessary period. You may have heard of a concept called the “statute of limitations.” The statute of limitations is the amount of time in which a debt collector can legally sue to collect an individual's debt. Therefore, if the statute of limitations in your jurisdiction is, for example, five years, and Sherman Financial sued you six years after the debt was overdue, then its lawsuit is too late.

You may be asking where you make these requests. You do it as you respond to the allegations in the Complaint document and also in your affirmative defenses. If you were served a Summons and Complaint, you have a limited amount of time to file an Answer with the court. In the Answer, you can deny the claims Sherman Financial Group makes against you, which will require them to prove it.

In the section for listing your affirmative defenses, you can include the statute of limitation as one of the reasons for not being responsible for the debt or why Sherman Financial Group should not be suing you for the debt. Learn more about drafting an Answer document in the following video.

Settle the debt with Sherman Financial Group

In many cases, settling debt with Sherman Financial Group is the ideal outcome. Here are some tips on how to stay in control of the negotiation process and settle your debt for less:

There are four factors you need to consider when pursuing settlement negotiations. Those are:

  1. How much can you afford to pay toward the debt? This requires taking a hard look at your finances and determining how much you can reasonably afford to pay as a lump sum.
  2. Make a reasonable settlement offer, but keep it lower than the amount you determined you could pay in step one. That way, if Sherman Financial Group makes a counteroffer, you have room to negotiate.
  3. Once an agreement is reached, draft a settlement agreement for both parties to sign. Get everything in writing to avoid future issues.
  4. Pay the agreed amount on time.

To learn more about these tips for settling with Sherman Financial Group, check out the following video:

Read Sherman Financial Group reviews online before you negotiate

When interacting with debt collector reviews online, you may feel overwhelmed as consumers have differing views about debt collection agencies. You need to understand that their aim is not to make your life difficult but simply to recover their money. In some platforms like CFPB, their reviews are also seen under Resurgent Capital Services. Have a look at some reviews from the following platforms:

Learning from other people’s experience dealing with Sherman Financial will help you prepare to call the company yourself to negotiate. As you communicate with an SFG agent, be open and willing to work with them on a repayment plan that matches your financial situation.

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