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Sued by VELOCITY INVESTMENTS - What to do?


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1. Who is suing you? VELOCITY INVESTMENTS, LLC (Using Blitt & Gaines P C for Plaintiff)

2. For how much? $3998 (principal), $249.00 (Court Cost)

3. Who is the original creditor? Lending Club

4. How do you know you are being sued? Received mailers about getting attorney help and found e Docket in Illinois Clerk website

5. How were you served? Were you served? Initial Contact was Letter in mail with delivery confirmation

Not served yet, but on the eDocket it says: SUMMONS ISSUED AND RETURNABLE, CASE SET ON STATUS CALL 05/02

6. What was your correspondence (if any) with the people suing you before you think you were being sued? None. Knew nothing about them prior to this.

7. Where do you live? ILLINOIS

8. When is the last time you paid on this account? 07/01/15 to Lending Club

9. What is the status of your case (if anything has been opened)? You can find this by a) calling the court or B) looking it up online (many states have this information posted daily). Case set on Status Call 05/02 even though it shows another court date under Complaint Filed 04/02 and activity date 03/01 - 03/02

10. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?) No

11. Did you request debt validation before the suit was filed? If not, don't bother doing this now. No

12. Does your summons require a response in writing? (Look hard!) If you don't get a questionnaire with your summons, you are still probably required to answer it in writing. If you don't respond to the lawsuit notice you will lose automatically. In 99% of the cases, they will require you to answer the summons, and each point they are claiming. We need to know what the "charges" are. Please post what they are claiming. Did you receive an interrogatory (questionnaire) regarding the lawsuit? I haven't received the summons yet.

13. What evidence did they send with the summons? An affadavit? A statement from the OC? Anything else they attached as exhibits?

Don't have that information yet, but want to prepare myself as much as possible.

I fell very ill for 6 months and lost my good job, already in debt about 60K, accumulated another 40K in treatments due to loss of insurance. Bankruptcy is not an option until 2019 because I was already in Chapter 7 due to being a co-signer on a mortgage and credit cards with my parents when 2007 financial crisis hit and we lost our business and home.

I am also wondering if it makes sense to fight this as more lawsuits will come and I will get buried anyways....please help!

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Lending Club, everything was "signed" online. I don't have any card agreement or anything of that sort. I never even signed anything, just applied online and got the money.  I never got a copy of anything.

Thanks again for your help.

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they're required to post it at their website although that at this time may not be the one in effect when your account was active. I went to Lending Club if this is the same place and found one- https://www.lendingclub.com/info/consolidated-borrowerLoan-agreement.action

I guess they're part of Webbank?

Anyways, they have JAMS and AAA in the agreement. JAMS would be the choice.

 

 

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4 hours ago, CCRP626 said:

In the meantime, pull out your cardmember agreement or look for one at http://www.consumerfinance.gov/credit-cards/agreements/ that covered your account while it was active.

Lending Club doesn't do credit cards they do personal/signature loans.  This is straight up contract law.

1 hour ago, logika said:

I never got a copy of anything.

Yes you did.  I have a loan with them and when you log into your account there is a tab that says "Loan Documents" which has all the documents you electronically signed in PDF form.

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7 hours ago, Clydesmom said:

Lending Club doesn't do credit cards they do personal/signature loans.  This is straight up contract law.

Yes you did.  I have a loan with them and when you log into your account there is a tab that says "Loan Documents" which has all the documents you electronically signed in PDF form.

Read Section 20 of the Loan Agreement.  There is an Arbitration clause with AAA or JAMS.

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11 minutes ago, logika said:

Forgive my lack of knowledge. I don't have the loan documents nor access to the website since my debt has been long sold. Also, could you clarify about AAA and JAMS and how it will impact my case? Thank you so much.

AAA and Jams are private arbitration firms and in most loan contracts they state that arb can be used in place of court. If the wording in the link above fits your case, you can file to have the case sent to arb. Most junk debt buyers will not pay the high fees to arb, so you will eventually win the case. 

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1 minute ago, Cliff2009 said:

AAA and Jams are private arbitration firms and in most loan contracts they state that arb can be used in place of court. If the wording in the link above fits your case, you can file to have the case sent to arb. Most junk debt buyers will not pay the high fees to arb, so you will eventually win the case. 

Thank you! Since I don't have the copy of the docs nor access to the website, how could I obtain the copy of such information without hurting my chances of "winning the case"

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Found this on Lending Club website:

(c) The party initiating arbitration shall do so with the American Arbitration Association (the "AAA") or JAMS. The arbitration shall be conducted according to, and the location of the arbitration shall be determined in accordance with, the rules and policies of the administrator selected, except to the extent the rules conflict with this Arbitration Provision or any countervailing law. In the case of a conflict between the rules and policies of the administrator and this Arbitration Provision, this Arbitration Provision shall control, subject to countervailing law, unless all parties to the arbitration consent to have the rules and policies of the administrator apply.

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3 minutes ago, logika said:

Thank you! Since I don't have the copy of the docs nor access to the website, how could I obtain the copy of such information without hurting my chances of "winning the case"

There is a newer one linked above, it may work but we should try and find one that is from early 2015. The agreement is generic, it is always separate than documents you fill out. 

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1 minute ago, Cliff2009 said:

There is a newer one linked above, it may work but we should try and find one that is from early 2015. The agreement is generic, it is always separate than documents you fill out. 

I see, thank you so much for your help Cliff. Where do you think I could obtain that? Is it something I will get once served with court summons? I heard Blitt & Gaines are very shady and falsify documents in many cases.

What should my next step of action be? Please advice

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1 minute ago, logika said:

I see, thank you so much for your help Cliff. Where do you think I could obtain that? Is it something I will get once served with court summons? I heard Blitt & Gaines are very shady and falsify documents in many cases.

What should my next step of action be? Please advice

If the debt was sold, the junk debt buyer probably has very little, it any documents.  It is possible you will get something with the summons but I doubt it. 

Here is another version I found and it is not dated which is good. https://www.lendingclub.com/info/borrower-agreement.action I only skimmed it  but it does say this " THE PARTIES ACKNOWLEDGE THAT THEY HAVE A RIGHT TO LITIGATE CLAIMS THROUGH A COURT BEFORE A JUDGE OR JURY, BUT WILL NOT HAVE THAT RIGHT IF ANY PARTY ELECTS ARBITRATION PURSUANT TO THIS ARBITRATION PROVISION. THE PARTIES HEREBY KNOWINGLY AND VOLUNTARILY WAIVE THEIR RIGHTS TO LITIGATE SUCH CLAIMS IN A COURT BEFORE A JUDGE OR JURY UPON ELECTION OF ARBITRATION BY ANY PARTY. "

Searching this site may help find an agreement also. 

The key is, if they don't have the agreement, yours is the one that counts. 

Right now since you have not been served, read up here a lot. 

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19 minutes ago, logika said:

I see many cases with VELOCITY /Blitt & Gaines end with CASE DISMISSED WITHOUT PREJUDICE -ALLOWED . What does it mean and how do people achieve that?

That is often done because of arbitration, you they work the court system so much the JBD no longer wants to spend on lawyers.  WITHOUT PREJUDICE means they can refile though but it is usually a good thing. 

Here is an interesting thing for those who have not been sued yet, if you want to get aggressive. http://www.debtorboards.com/index.php/topic,27819.msg251036.html#msg251036 

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Awesome, thank you so much! How would I request, file or whatever for that arbitration? I have been served yet but it shows on edocket, SUMMONS ISSUED AND RETURNABLE. Already have date 04/05 but then there is a date (CALL ON STATUS) on 05/02. What should I do, hiring an attorney, I can't do it because I am literally broke barely surviving. But I want to make sure I do the right steps.

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If it is at the court, electing arb now may not work for a violation, I would be curious what others would say who know you state rules.

But once you get the summons we will help you with a motion to compel arbitration and how to answer the summons. Usually you get 20-30 days.  Do you have any letters from velocity or the law firm? Make sure you keep everything, envelopes, phone calls, recordings etc. 

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Here is the thing. They never called me (my number on application and overall has been the same for 10 years) or mailed me. I have nothing. This lawsuit came as complete surprise and I only learned about it from the mailers that Attorneys sent to me saying "You are being sued, here is our info line to help"

I did move about 6 months ago but I updated my address everywhere, at the DMV, at the post office. Also, they filled the case at the courthouse that is next to my current house. So they must have my proper address etc.

Here is the copy of my edocket.

 

lawsuit.JPG

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Before getting served, the first many defendants know they're getting sued are mailings from other attorneys looking to see if you want representation.

Personally, I'd just hold tight and wait to be served. Plaintiffs have been known to dismiss without prejudice if you can't be served then they may try again later within the statute of limitations. Others may have the Sheriff serve you if you live in an apartment complex where a process server can't gain access. Just depends.

Before you get served, you can proceed with arbitration following the instructions in the cardmember agreement or wait until you get served then answer with a MTC arbitration.

 

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Summons Issued and Returnable just means they're attempting to serve you. If they can't they can go to the judge for an alternative service request- Alias Summons- which still may not be successful.

The court site doesn't always update quickly, so check back at least once a week for status updates to make sure nothing looks odd.

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2 hours ago, logika said:

I see, thank you so much for your help Cliff. Where do you think I could obtain that?

If this was all done online can you still access your account at their site for documents or check your old e-mails? You can also go to the CFPB site and file a complaint that you can't access the agreement/contract in force at the time the account went into default. http://www.consumerfinance.gov/complaint/ OTHER CONSUMER LOAN

 

"Is it something I will get once served with court summons? "

Unless it's favorable to you with arbitration terms you like you could go many directions with this. Nothing attached, is motion to dismiss. If they do attach something, they aren't qualified since they aren't the original creditor, so strike under hearsay/business records exception.

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11 minutes ago, CCRP626 said:

If this was all done online can you still access your account at their site for documents or check your old e-mails? You can also go to the CFPB site and file a complaint that you can't access the agreement/contract in force at the time the account went into default. http://www.consumerfinance.gov/complaint/ OTHER CONSUMER LOAN

I just tried, my password didn't work, I did reset and the reset e-mail never came. I checked SPAM. I cannot login to my account online. I checked all e-mails and nothing in email contains the contract. Would reaching out to Lending Club in any way jeopardize my chances of winning this? I know it is a stupid question.

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