Sued by Cavalry SPV in California? Here’s What to Do

Cavalry SPV I, LLC is a debt buyer headquartered in Greenwich, Connecticut. Founded in 1991, Cavalry is a subsidiary of Cavalry Investments, LLC, a privately held company that focuses on purchasing defaulted consumer debt portfolios.

Cavalry buys defaulted consumer debts — typically credit card accounts — from original creditors like Capital One, Synchrony Bank, Citibank, and other major issuers. They pay pennies on the dollar for these portfolios and then pursue collection through letters, phone calls, and lawsuits.

In California, Cavalry SPV files more debt collection lawsuits than any other debt buyer. Industry data shows Cavalry accounts for roughly 8% of all debt buyer filings in California state courts — ahead of LVNV Funding and Midland Credit Management. Their attorneys in California are typically Mandarich Law Group, LLP, or Suttell & Hammer, P.S., both firms specializing in volume debt collection litigation.

The most important thing to understand about Cavalry: they bought your debt for a tiny fraction of what they’re claiming. They have a strong financial incentive to settle for less than the full amount, and an even stronger incentive to abandon cases where the defendant fights back with documented defenses.

Under California Code of Civil Procedure § 412.20(a)(3), you have 30 days from the date you were served to file an Answer with the court. Miss this deadline and the court will enter default judgment for the full amount plus interest, court costs, and attorney’s fees.

Default judgment is permanent. It can be collected from your wages through wage garnishment, from your bank account through bank levy, and as a lien against your property. It also damages your credit for 7 years.

The 30 days starts on the date you were personally served — not the date the lawsuit was filed. If you were served by substituted service (someone other than you accepted at your home or workplace), you have 30 days from when service is deemed complete (typically 10 days after the substituted service). Check your summons carefully for the exact deadline.

E-filing is mandatory in many California counties including Los Angeles (Court Connect), San Francisco, San Diego, Orange County, and Sacramento. Other counties accept paper filings. Check your county’s court website for filing requirements.

California has one of the strongest debt buyer documentation requirements in the country. Under California Civil Code § 1788.52, before bringing a lawsuit, a debt buyer must have access to the following documents:

The complete chain of title from the original creditor to the debt buyer. Documentation showing the amount alleged to be owed at the time of charge-off, including any post-charge-off interest, fees, and payments. The original creditor’s name and the original account number.

Cavalry must produce these documents when you demand them in discovery. If they cannot produce the complete chain of title or the original account documentation, the case may be dismissible.

Civil Code § 1788.58 also requires the debt buyer’s complaint to include specific information: the name of the original creditor, the last four digits of the original account number, and the amount owed at charge-off. If Cavalry’s complaint is missing this information, you can challenge the sufficiency of the pleading.

California has different statute of limitations periods depending on the type of debt.

Under Cal. Code Civ. Proc. § 337(1), the SOL on written contracts (including most credit card agreements) is 4 years from the date of breach (typically the date of your last payment).

Under Cal. Code Civ. Proc. § 337(2), the SOL on open book accounts is also 4 years.

If your last payment on the underlying debt was more than 4 years ago, the case is time-barred and you can move to dismiss it. Calculate this carefully.

The clock starts on your last payment, not the date the debt was charged off. The clock does not restart if Cavalry bought the debt more recently. The clock does not restart unless you made a new payment or signed a new agreement acknowledging the debt.

California has a relatively short SOL compared to many other states (Wisconsin is 6 years, Indiana is 6 years, New Jersey is 6 years). Demand the original account statements in discovery — the date of last payment is your statute of limitations defense.

Statute of limitations. If your last payment was more than 4 years ago, the case is time-barred under Cal. Code Civ. Proc. § 337.

Failure to comply with Civ. Code § 1788.52 documentation requirement. Cavalry must produce the complete chain of title and original account documentation. When they cannot, the case may be dismissible.

Failure to comply with Civ. Code § 1788.58 pleading requirement. If Cavalry’s complaint doesn’t include the original creditor’s name, last four digits of the account number, and the charge-off amount, you can challenge the complaint.

Motion to Compel Arbitration. Most consumer credit agreements (Capital One, Synchrony, Citibank) contain mandatory arbitration clauses. Filing a Motion to Compel Arbitration moves the case out of California court and forces Cavalry to file with the American Arbitration Association (AAA). When Cavalry fails to comply with AAA’s procedural requirements, the case can be dismissed.

Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code § 1788). California’s Rosenthal Act is one of the strongest state consumer protection statutes in the country, and unlike the federal FDCPA, it explicitly applies to first-party debt collectors and original creditors. Violations can support both defenses and counterclaims with statutory damages.

In 2025, I was sued for $2,892.96 by Plaza Services LLC, another debt buyer, in Eau Claire County Small Claims Court in Wisconsin. I had no lawyer. I’d never been in a courtroom before.

I read my original credit agreement carefully. It contained a mandatory arbitration clause requiring all disputes to be resolved through the American Arbitration Association. I filed a Motion to Compel Arbitration in Wisconsin Circuit Court.

The plaintiff didn’t comply with AAA’s procedural requirements within the deadline. The court dismissed the case.

That same playbook works against Cavalry in California. Most consumer credit agreements have arbitration clauses. Cavalry often fails to comply with AAA when defendants invoke them. The case gets dismissed.

I built Answered specifically because I went through this process and realized how few defendants know they have these defenses. Most pro se defendants either default or panic and settle for amounts they don’t actually owe.

File at the court named on your summons. California civil cases are divided into Limited Civil (under $35,000) and Unlimited Civil (over $35,000) jurisdictions, both within the Superior Court system.

Filing fees vary by case type and amount in controversy. For Limited Civil cases under $10,000, fees are typically around $180. For Limited Civil cases between $10,000 and $25,000, fees are around $370. Unlimited Civil filing fees are around $435. California offers fee waivers for qualifying low-income defendants — file Form FW-001 to apply.

E-filing is mandatory in many counties. In Los Angeles County, file through Court Connect. In San Francisco, San Diego, Orange County, and Sacramento, use the county’s e-filing portal. In other counties, paper filings may still be accepted.

Your Answer must include numbered paragraph denials matching the complaint, your affirmative defenses (statute of limitations, lack of standing, failure to comply with § 1788.52, etc.), your verified signature, and a certificate of service. After filing, e-service is automatic to Cavalry’s attorney through the e-filing system in counties that require e-filing.

The court schedules a Case Management Conference (CMC) — typically within 120 days of filing. Both parties must file CMC statements before the conference. Cavalry must produce evidence supporting their claim — the credit agreement, account statements, and the chain of title required by Civ. Code § 1788.52.

You can request discovery, demanding Cavalry prove ownership and the amount they’re claiming. California allows broad discovery — interrogatories, requests for production, and requests for admission are all available. Specifically demand the documentation Civ. Code § 1788.52 requires.

If Cavalry can’t produce documents, you can file a Motion for Summary Judgment or a Motion to Dismiss.

Many Cavalry cases settle for far less than the demanded amount, or get dismissed before trial. The single most important fact about Cavalry cases is that debt buyers abandon most cases where defendants fight back with documented defenses. Filing an Answer with strong defenses is often enough to make Cavalry walk away.

Don’t ignore the lawsuit. Default judgment is permanent and collectible.

Don’t agree to a verbal payment plan. Get everything in writing and on the court record.

Don’t admit you owe the debt in your Answer. Deny everything you can’t independently verify with documents.

Don’t pay the original creditor. If Cavalry is suing you, paying the original creditor creates evidence that Cavalry doesn’t actually own the debt anymore.

Don’t settle without seeing the documentation first. If Cavalry can’t comply with Civ. Code § 1788.52, you may not owe what they’re claiming.