How to Beat Velocity Investments in a Debt Lawsuit
George Simons | October 28, 2023
Edited by Hannah Locklear
Summary: Sued for a debt by Velocity Investments LLC? This guide is for you. Use SoloSuit to respond in 15 minutes.
If you were named as a defendant in a lawsuit filed by Velocity Investments LLC, your mind is probably inundated with questions or concerns, most importantly, “What steps can I take to beat Velocity Investments LLC in court?” SoloSuit can help you respond to the debt collection lawsuit. The information provided below offers key insights and advice on how to effectively defend and fight against Velocity Investments LLC in court.
What is Velocity Investments LLC?
Velocity Investments, LLC is a national purchaser of delinquent consumer debts. The company was formed in Wall, New Jersey in 2003. Velocity Investments LLC boasts that it uses a “comprehensive collection strategy” aimed at turning “distressed receivables to cash.” This is basically debt collector lingo for hounding consumers relentlessly and taking them to court in the hopes of breaking them down to the point where they pay the delinquent debt.
In other words, Velocity Investments specializes in purchasing old debt from creditors (banks, credit card companies, etc.) and then suing the people who owe the debt to make a profit. Velocity usually purchases the debt for less than 20% of the original amount, which means that they make a huge profit when consumers pay the amount off in full.
For this reason, you should investigate the debt by sending a Debt Validation Letter and look into settlement options before paying Velocity Investments anything. Here's everything you need to know about it.
Send Velocity Investments LLC a Debt Validation Letter
The FDCPA requires Velocity Investments LLC to provide validation of a debt within 5 days of attempting to collect it. The debt validation should include these five points:
The amount of the debt.
The name of the creditor.
The collector will assume the debt is valid unless the consumer sends them a Debt Validation Letter within 30 days.
If you send the collector a Debt Validation Letter they will need to mail you validation of the debt.
If you send them a Debt Validation Letter they will need to mail you the name and address of the original creditor.
When you send a Debt Validation Letter to Velocity Investmnents, they must cease all collection efforts until they have officially validated the debt. Many debt collection agencies give up after receiving such a letter, so it's a great tool to use if you have debt collectors breathing down your neck.
SoloSuit can help you draft a professional Debt Validation Letter in minutes, which will help you fight off Velocity Investments. To learn more about how to draft a Debt Validation Letter, check out this video:
Contact Velocity Investments LLC at this phone number and address
If you have decided to request a debt validation from Velocity Investments, you can reach them at the following phone numbers and address:
Since the company was formed, Velocity Investments LLC has been the subject of multiple complaints filed with the Better Business Bureau and Consumer Financial Protection Bureau alleging multiple violations of the Fair Debt Collections Practices Act (FDCPA). Some of the most commonly cited violations include failing to provide debt verification and attempting to collect debts from people who did not actually owe them any money.
Velocity Investment's BBB profile only has 1 out of 5 stars, and clearly unhappy about their experiences with the company. For example, one consumer explained that Velocity kept calling him about a debt from 20 years ago. When the consumer asked Velocity to mail documentation of the debt, they refused but said they would reduce the debt if he paid it off in the next 30 days. This is a pretty huge red flag for many reasons, but most because the debt was probably way past the statute of limitations on debt.
If you have experienced similar issues, you should learn more about your consumer rights under the FDCPA. You could fight back and end up earning money from Velocity.
You may be able to pursue compensatory damages against Velocity Investments LLC
In addition to defending against a lawsuit filed by Velocity Investments LLC, you have the option to go on offense by filing a counterclaim against this debt collection company. You can go on offense by filing a counterclaim pursuant to the aforementioned FDCPA.
Consumers have the right to file a lawsuit for alleged violations of the FDCPA, such as receiving collection calls before 8:00 AM or after 9:00 PM. If you prevail in this counterclaim, you could be entitled to statutory damages of $1,000, plus punitive and economic damages.
Respond to the lawsuit filed by Velocity Investments LLC
If you get served with a Summons and Complaint by a representative of Velocity Investments LLC, the first step to beating them is to file a written Answer with the court.
One of the most common mistakes people make when they are sued by debt collection companies like Velocity Investments LLC is failing to actually respond to the Summons and Complaint. Whether you actually owe the debt or believe you were sued by mistake, you need to respond to the claims made by Velocity Investments LLC. In legal terms, your response to the Complaint is known as an Answer.
Here are 6 handy tips to help you draft the best debt lawsuit Answer possible. To learn more about these 6 tips, check out the video below:
The Answer isn't the place to tell your side of the story in detail: At this stage in the lawsuit, the burden of proof is not on you. This means that you don't have to elaborately explain your side of the story. In fact, doing so can actually hurt your case. Let the plaintiff (in this case, Velocity) prove their claims. All you have to do is respond to each claim listed in the Complaint.
Deny Deny Deny: Most attorneys recommend that you deny as many of the claims against you as possible. Denying is kind of like saying, “prove it,” which requires more work and documentation on Velocity's end. If Velocity Investments doesn't have enough evidence to prove you owe the debt, it will likely dismiss the case altogether.
Include defenses: You should include a section in your Answer where you state your affirmative defenses. These are short statements that are reasons Velocity doesn't have a case against you. For example, the debt may be past the statute of limitations, you may be sued in the wrong state or county, and you may not have received a Summons notifying you of the lawsuit. These are all common affirmative defenses that can strengthen your case.
Use standard formatting or “style”: Your Answer should be clean and professional, with standard font, font size, and formatting. It should include a caption that states the court information, parties, and case number.
Include certificate of service: The certificate of service is a short statement at the end of a legal document that certifies the document was actually sent to the opposing party. It should include the address that was used and the manner in which it was sent. So, you should certify that you sent the Answer to the attorney representing Velocity Investments with the address listed on the Summons document.
Sign it: Almost all courts require a signature at the end of the Answer. Without an Answer, the court will most likely reject the document. Make sure to double check whether your court accepts electronic signatures or not.
Avoid default judgment if Velocity Investments LLC is suing you
Filing an Answer is so important because failing to do so will enable Velocity Investments LLC to file a motion to obtain a default judgment against you. If a default judgement is entered by the Court against you, Velocity Investments LLC will be authorized to garnish your wages, take money from your bank account, collect attorney's fees and court costs, and seize your personal property.
Another important reason to respond to the lawsuit is because many debt collection companies like Velocity Investments LLC are assuming you will not file an Answer to the Summons and Complaint. This is because the vast majority of people fail to respond. As a result, when you take the time to provide a response, it actually catches many debt collectors off guard and could even create an opportunity to reach a settlement or out-of-court resolution with the debt collector
Make Velocity Investments LLC prove that you actually owe the alleged debt
There is a very good chance the debt claimed in the lawsuit has been packaged, sold and resold before the current debt collection agency, such as Velocity Investments LLC, purchased it and is suing you to try and collect on it. As a result, a strategy for challenging the lawsuit is simply requesting that the debt collection company provide the original signed agreement and a balance on the account from zero to present. In many instances, the debt collection company only has a portion of the statements and likely will not have access to the original signed agreement.
Make Velocity Investments LLC prove the lawsuit was filed within the statute of limitations
As mentioned earlier, many debt collection companies (including Velocity Investments LLC) assume most people will not actually respond to the collections lawsuit and they will obtain a default judgment. As a result, there are many instances when the debt collection company fails to actually take the time to confirm that they can legally sue you for the debt. Keep in mind that if the applicable statute of limitations has expired, the debt collector is legally prohibited from suing you on the debt. In most states, a debt collector only has a finite amount of time to sue you for an alleged delinquent debt.
If it turns out that the statute of limitations expired, you can raise it as an affirmative defense that could enable you to file a motion to dismiss the lawsuit entirely.
To learn more about how to effectively respond and defend against a debt collection lawsuit, use the tools and resources available through SoloSuit.
What is SoloSuit?
SoloSuit makes it easy to respond to a debt collection lawsuit. Here is what to expect when you use SoloSuit. First, you will utilize our step-by-step web-app. This app will ask you a series of questions. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
Respond with SoloSuit
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Offer Velocity Investments LLC a settlement after filing your Answer
If you are dealing with a debt buyer — someone like Velocity Investments who bought your debt from the original creditor — then they will probably accept a settlement between 1%–50% of the amount they're suing you for.
On average, debt collectors buy debts for 8 percent of the face value of a debt. Meaning if they settle for 10 percent of the debt, they will earn 2 percent. If you are dealing with the original creditor, they will be less willing to settle for a low amount. You may be able to settle for 20%-70% of the debt.
After filing your Answer, you can still reach out to Velocity Investments to negotiate a settlement. Put together a realistic offer based on your finances and the debt itself. Use SoloSettle to get started. If you can't afford a lump sum payment, then monthly payments may be your best option. Here are some tips for negotiating a settlement offer:
Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.
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If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.
Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.
Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.
It only takes 15 minutes. And 50% of our customers' cases have been dismissed in the past.
"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" – Heather