How to Settle a Sherman Financial Group Lawsuit in 2025
When Sherman Financial Group sues you, respond immediately by demanding proof of debt ownership and verifying the statute of limitations. Many collection lawsuits are dismissed because collectors cannot provide adequate documentation. You can negotiate a settlement for less than the full amount or fight the lawsuit in court with proper legal guidance.
Answer Your LawsuitDebt collection is a standard process. Sherman Financial Group and similar agencies recover money owed by individuals. When you fall behind on payments, collectors contact you to settle the balance.
Understanding your rights is critical. When a debt collector takes you to court, they must prove you owe the debt. Often, they cannot provide enough evidence. When you ask them to prove the debt, you may resolve the situation in your favor.
Beat Sherman Financial Group in Court
You have 20-30 days to respond to their lawsuit. Our partner Solo helps you draft a proper Answer that demands proof and protects your rights.
Respond to Summons NowInstead of ignoring a lawsuit, take action. Respond to the court notice and ask the collector to prove their claim. You have more power than you think.
What Is Sherman Financial Group?
Sherman Financial Group, LLC is a massive debt collection company. They purchase consumer debt that has gone into default. The company buys debt from credit card companies, phone companies, student loan providers, mortgage banks, and other businesses.
They acquire these debts at discounted prices (often pennies on the dollar). Then they work to collect through subsidiaries including LVNV Funding and Resurgent Capital Services. These subsidiaries handle day-to-day collection efforts or hire third-party collection agencies.
Sherman Financial Group files lawsuits and pursues garnishments for unpaid debts. Their contact information:
Address: 335 Madison Avenue, 23rd Floor, New York, NY 10017
Sherman Financial Group is owned by Sherman Capital. It owns many debt collection subsidiaries including Sherman Originator and Sherman Acquisition. The company is affiliated with Resurgent Capital Services, LVNV Funding, and Allegis Group.
Many financial organizations operate through multiple subsidiaries for business and legal purposes. Understanding these structures and your rights is key to navigating these situations effectively.
Respond to Sherman Financial Group’s Lawsuit
The key to winning a lawsuit from Sherman Financial Group is demanding proof. You need to make two critical requests in your response.
Request Proof of Debt Ownership
Ask for evidence showing that Sherman Financial Group owns the alleged debt. Because Sherman Financial does not originate loans or issue credit cards, they purchased your debt from someone else. Demand proof of that transaction.
If Sherman Financial cannot provide documentation showing they own your alleged debt, you win. Our partner Solo can help you draft this request properly.
Verify the Statute of Limitations
Demand that Sherman Financial prove they filed their lawsuit within the necessary period. The statute of limitations is the amount of time a debt collector can legally sue you. Each state has different time limits.
If the statute of limitations in your state is five years and Sherman Financial sued you six years after the debt was overdue, their lawsuit is too late. You can use this as an affirmative defense.
File Your Answer Document
When you receive a Summons and Complaint, you have limited time to file an Answer. In the Answer, you can deny the claims Sherman Financial Group makes against you. Your denial requires them to prove their case.
In the affirmative defenses section, include the statute of limitations as one reason for not being responsible. You can also question their ownership of the debt.
Responding promptly protects your rights. You prevent a default judgment that could lead to wage garnishment or bank levies.
Negotiate a Settlement With Sherman Financial Group
Settling debt with Sherman Financial Group is often the ideal outcome. You can resolve the matter for less than the full amount. Here are four steps to stay in control of negotiations:
Step 1: Determine What You Can Afford
Take a hard look at your finances. Determine how much you can reasonably afford to pay as a lump sum. Be realistic about your budget and obligations.
Step 2: Make a Lower Initial Offer
Make a reasonable settlement offer below the amount you determined in step one. Starting lower gives you room to negotiate when Sherman Financial Group makes a counteroffer. Expect them to counter your initial proposal.
Step 3: Get Everything in Writing
Once you reach an agreement, draft a settlement agreement for both parties to sign. The document should specify the settlement amount, payment terms, and confirmation that the debt will be considered satisfied. Never rely on verbal promises alone.
Step 4: Pay on Time
Pay the agreed amount according to the schedule. Late payments can void your settlement agreement. Sherman Financial Group could then pursue the full original debt amount.
Our partner Solo can help you negotiate and settle your Sherman Financial Group lawsuit for less than you owe.
Research Sherman Financial Group Reviews
Reading reviews helps you prepare for negotiations. Consumers have differing views about debt collection agencies. Remember that their aim is to recover money they purchased.
Sherman Financial Group reviews appear under their name and also under Resurgent Capital Services on some platforms. Check these sources before you call:
- Consumer Financial Protection Bureau (CFPB) complaint database
- Google reviews for their New York office
- Birdeye reviews and ratings
Learning from other people’s experiences helps you prepare. When you communicate with an SFG agent, be open and willing to work on a repayment plan. Match the plan to your actual financial situation.
Know Your Rights Under the FDCPA
The Fair Debt Collection Practices Act (FDCPA) protects you from abusive collection practices. Sherman Financial Group must follow these federal rules when collecting debts.
Debt collectors cannot harass you, call at unreasonable hours, or use deceptive tactics. They cannot threaten actions they cannot legally take. They must verify debts when you request validation.
If Sherman Financial Group violates the FDCPA, you can sue them. You may recover damages and attorney fees. Document all communication with the company to protect yourself.
Consider Your Other Options
Responding to the lawsuit and negotiating a settlement are not your only options. Depending on your financial situation, you might explore alternatives.
Debt Management Plans
Credit counseling agencies can negotiate with Sherman Financial Group on your behalf. They may secure lower interest rates and consolidated monthly payments. Your credit counselor handles the negotiations while you make one monthly payment.
Bankruptcy Protection
If you have overwhelming debt beyond just Sherman Financial Group, bankruptcy might provide relief. Chapter 7 bankruptcy can discharge unsecured debts like credit cards and medical bills. Chapter 13 creates a repayment plan that stops collection lawsuits.
Bankruptcy stops wage garnishment and gives you a fresh start. Consult with a bankruptcy attorney to understand your options.
Act Quickly to Protect Your Rights
Time is not on your side when Sherman Financial Group sues you. You typically have 20 to 30 days to respond to a lawsuit, depending on your state. Missing this deadline results in a default judgment against you.
A default judgment allows Sherman Financial Group to garnish your wages, levy your bank accounts, or place liens on your property. They win automatically because you did not respond.
Responding to the lawsuit is your most important step. Even if you owe the debt, filing an Answer protects your rights. You force Sherman Financial Group to prove their case in court.
Many debt collection lawsuits are dismissed because the collector cannot provide adequate proof. Do not give them an easy win by ignoring the lawsuit.