Settle Debt with Cavalry SPV: What Actually Works in 2025

Cavalry SPV owns more than $7 billion in consumer debt. If they bought yours, you're probably getting calls and letters demanding payment on an old credit card or medical bill. The good news: you can negotiate with them. The better news: they often settle for 30-50% of what they claim you owe.

Cavalry SPV is a debt buyer, not the original creditor. They purchased your debt for pennies on the dollar—sometimes as little as 4 cents per dollar of face value. That gives you leverage. They profit even if you settle for half the balance.

Start by forcing them to prove they own the debt. Then negotiate from a position of strength.

Who Is Cavalry SPV and Why Are They Calling You?

Cavalry SPV I, LLC operates out of Chandler, Arizona. They buy portfolios of defaulted debt from original creditors like Wells Fargo, Citibank, Synchrony Bank, and medical providers. Their subsidiary, Cavalry Portfolio Services, handles most of the actual collection work.

When a creditor writes off your debt after 120-180 days of nonpayment, they sell it to a company like Cavalry. The original creditor gets a tax write-off and some cash. Cavalry gets the right to collect the full amount plus interest and fees.

But here's the problem for them: they often buy these debts without complete documentation. They may not have your original credit agreement, detailed payment history, or even proof that you're the right person. That's your opening.

Step 1: Demand Debt Validation in Writing

The Fair Debt Collection Practices Act (FDCPA) requires debt collectors to send you a validation notice within five days of first contact. That notice must include the amount owed, the creditor's name, and your right to dispute the debt.

You have 30 days from receiving that notice to request validation. Send a certified letter asking Cavalry SPV to provide:

• Proof that you owe the debt (original signed agreement or account statements)
• Chain of custody showing how the debt was transferred to them
• Itemization of the current balance (principal, interest, fees)
• Copy of their collection license for your state
• Calculation showing the statute of limitations hasn't expired

Once Cavalry receives your validation request, they must stop all collection activity until they provide the documents. They cannot call you, report to credit bureaus, or file a lawsuit.

About 20-30% of the time, debt buyers can't produce adequate proof. If Cavalry doesn't respond within 30 days, send a follow-up letter demanding they cease collection and remove any negative marks from your credit report.

What If They Validate the Debt?

If Cavalry provides sufficient documentation, you move to step two. The validation doesn't mean you owe exactly what they claim,it just means they've met the minimum legal standard to continue collecting.

Check the documents carefully. Look for gaps in the payment history, discrepancies in the amount, or signatures that don't match yours. If something looks wrong, you can still dispute specific details.

Step 2: Check Your Statute of Limitations

Every state has a statute of limitations on debt collection. Once that clock runs out, the debt becomes "time-barred." Cavalry can't sue you for it, though they may still call and send letters.

The statute varies by state and debt type:

• California: 4 years for credit card debt
• Texas: 4 years
• New York: 6 years
• Florida: 5 years for written contracts, 4 years for oral
• Illinois: 10 years for written contracts

The clock typically starts from your last payment or, in some states, your last account activity. If you made a $10 payment three years ago, that may have restarted the clock.

If your debt is time-barred, tell Cavalry in writing. They must stop collection attempts or face FDCPA penalties. Do not make a payment or promise to pay,that can reset the statute of limitations in many states.

If the statute hasn't expired and Cavalry validated the debt, you're in negotiation territory.

Step 3: Calculate What You Can Afford

Cavalry SPV prefers lump-sum settlements. They bought your debt cheap and want to close the file. If you offer cash now, they'll often accept 30-50% of the balance.

Run your numbers. How much can you pay today without raiding your emergency fund or skipping rent? That's your maximum offer. Start lower,around 25% of what they claim you owe.

If you can't pay a lump sum, Cavalry may accept a payment plan. Expect them to push for 6-12 months of payments rather than dragging it out for years. They want their money fast.

Before you offer anything, decide whether bankruptcy makes more sense. If you owe multiple creditors and can't realistically pay even 50% of your total debt, Chapter 7 bankruptcy might wipe it all out. Use our bankruptcy screener to see if you qualify.

Step 4: Make Your Settlement Offer

Send your offer in writing via certified mail. Email is faster, but certified mail creates a paper trail.

Your letter should be short and factual:

"I'm writing to settle the account ending in 1234 for $800, which is 30% of the $2,667 you claim I owe. This is a full and final settlement. If you accept, I will pay via cashier's check within 10 business days of receiving a written settlement agreement. This offer expires in 15 days."

Do not explain why you're offering that amount. Do not apologize or justify the original debt. State your terms and move on.

Cavalry will probably counter. They may come back at 60% or 70%. Negotiate. If you can't get below 50%, consider whether paying half of an old debt makes sense or if you'd be better off letting it age out.

Never Pay Without a Written Agreement

Once you agree on a number, demand a settlement letter before you send money. That letter must state:

• The settlement amount
• That payment in full satisfies the entire debt
• That Cavalry will report the debt as "settled" or "paid in full" to credit bureaus
• That they won't sell the remaining balance to another collector

Do not send money based on a phone call. Debt collectors sometimes "forget" what they agreed to if it's not in writing. Once you pay, you have no leverage.

Step 5: Pay and Follow Up

Pay with a cashier's check or money order, never a personal check. Include the account number in the memo line. Keep copies of everything.

Thirty days after payment, pull your credit reports from all three bureaus (Experian, Equifax, TransUnion). Confirm that Cavalry updated the account status to "settled" or removed it entirely, depending on your agreement.

If they didn't update your report correctly, send a copy of your settlement letter to the credit bureaus and file a complaint with the CFPB.

What If Cavalry SPV Sues You?

Cavalry files thousands of lawsuits every year. If they serve you with a summons and complaint, you typically have 20-30 days to respond (varies by state).

Do not ignore the lawsuit. If you don't respond, Cavalry gets a default judgment. That means they can garnish your wages, freeze your bank account, or put a lien on your property.

File an Answer with the court. In your Answer, deny any claims you can't verify and raise affirmative defenses like statute of limitations or lack of standing (if they can't prove they own the debt).

You can still settle after being sued. Cavalry may even offer better terms once they realize you're going to fight. Many debt buyers count on default judgments. When you show up, their costs go up, and their willingness to settle goes up with it.

Protect Yourself from Future Calls

Once you settle (or if Cavalry can't validate the debt), send a cease communication letter. Under the FDCPA, debt collectors must stop contacting you if you request it in writing.

The cease letter doesn't erase the debt, but it stops the harassment. Cavalry can still sue you, but they can't call your phone 10 times a day.

If they violate the cease order, document it. You can sue them for FDCPA violations and potentially win $1,000 in statutory damages plus attorney fees.

Does Settling Hurt Your Credit?

A settlement shows as "settled for less than the full balance" on your credit report. That's not as good as "paid in full," but it's better than an open collection account.

If the debt is already on your report, settling won't make your score drop further. It may actually help because it closes an active collection. If the debt is old (beyond the 7-year reporting window), settling can sometimes trigger a re-aging that adds more years to your credit report. Check the original delinquency date before you settle.

Some people negotiate "pay for delete" agreements, where Cavalry removes the account entirely in exchange for payment. They rarely agree to this, but it's worth asking.

Should You Hire a Debt Settlement Company?

Probably not. Debt settlement companies charge 15-25% of the enrolled debt and take months to negotiate. You can do the same thing yourself by following the steps above.

If you're overwhelmed or facing multiple lawsuits, talk to a consumer bankruptcy attorney instead. Many offer free consultations. They can tell you whether settling makes sense or if filing bankruptcy would give you a clean slate.