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Being sued by Velocity Investments, LLC in TX HELP!

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I have never been through anything like this before. I had some identity theft a few years ago. I thought we caught it before they could do any harm. But, nothing showed up on my credit report until this.  Please help if you can?

Being sued in County Court. I have no knowledge of this account!

1. Who is the named plaintiff in the suit?
       Velocity Investments, LLC

2. What is the name of the law firm handling the suit? (should be listed at the top of the complaint.)
      Scott, Parnell & Associaiates

3. How much are you being sued for?
          $10,797.06 plus Attn fee $2,915.21 plus interest and court costs

4. Who is the original creditor? (if not the Plaintiff)
           Lendingclub Corp

5. How do you know you are being sued? (You were served, right?)
          served with original petition

6. How were you served? (Mail, In person, Notice on door)
         In person

7. Was the service legal as required by your state?
            Yes. I belive so.

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

    No correspondence at all .

9. What state and county do you live in?
         Tarrant County, Texas

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations)
          Never. I have no knowledge of this account

11. What is the SOL on the debt? To find out:
           4 years I believe.

12. What is the status of your case? Suit served? Motions filed? You can find this by a) calling the court or B) looking it up online (many states have this information posted - when you find the online court site, search by case number or your name).
            Suit served on April 25 2016

13. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?)

14. Did you request debt validation before the suit was filed? Note: if you haven't sent a debt validation request, don't bother doing this now - it's too late. 


15. How long do you have to respond to the suit? (This should be in your paperwork). 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?  20 Days to respond. Yes did receive Request for Admissions with 9 questions with Response: Admit or Deny next to each

16. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits.   Nothing. Just a sticky note stating "This can be handled out of court. Please call this number to make arrangements"


Below are the "Facts" and Counts listed on the summons.



7.   In the usual course of business, Lendingclub Corporation advanced dollar amounts on a Credit Account or other open account, account number XXXXXXX, which defendant XXXXXX XXXXXX ("Defendant") utilized, and for which Defendant became bound to repay Lendingclub Corporation for all amounts thereby advanced (hereinafter, the "Account").

8.   Plaintiff is the true party in interest to the Account in that it is the assignee, owner and beneficiary of all rights pursuant to an assignment of the Account to Plaintiff.

9.  The Defendant has ceased making payments on the Account, thereby creating a default.

10. There continues to be owed by Defendant to Plaintiff an unpaid balance of $10,797.06

Count I - Suit on Debt/Account Stated

11. Paragraphs 1 through 10 are incorporated by reference.

12. Plaintiff is the owner and beneficiary of all claims related to the Account opened by the Defendant with Plaintiff. In accordance with federal regulations, Plaintiff sent monthly periodic statements for the Account to the Defendant. Based upon Plaintiff's records, there are no unresolved billing disputes related to the Account and the amount that is due and owing on the Account is $10,797.06; said amount being just and true after all lawful efforts, payments and credits have been allowed.

13. Plaintiff is entitled to recover on the Account because (i) transactions between Plaintiff and the Defendant gave rise to an indebtedness , (ii) there existed an agreement between the Plaintiff and Defendant which established the amount that was due to the Plaintiff, and (iii) the Defendant promised to pay Plaintiff on the debt which was incurred, but failed to do so.

14. Plaintiff has presented its claim to Defendant for payment, but Defendant has failed and refused to pay the amount owed. 

Count II - Breach of Contract

15. Paragraphs 1 through 14 are incorporated by reference.

16. Plaintiff is the owner and beneficiary of all rights under the Account opened by the Defendant with Plaintiff. Defendant has breached the agreement between the parties by failing to pay all amounts due and owing on the Account in accordance with the terms of the agreement.

17. $10,797.06 remains due and owing on the Account.

18. Plaintiff has presented its claim to the Defendant for payment, but defendant has failed and refused to pay the amount owed.

Count III - Attorney's Fees

19. Paragraphs 1 through 18 are incorporated by reference.

20. Plaintiff has presented its claims for the recovery of amounts herein sought to the Defendant pursuant to §38.001 of the Texas Civil Practice and Remedies Code; yet no amounts have been paid in response to the claim. Plaintiff is, accordingly, entitled to recovery of its attorney's fees and costs incurred in the prosecution of these claims, both at the trial court level, along with conditional appellate awards for each level to which any judgment rendered in this matter is taken.



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10 hours ago, Standup 3 said:

I had some identity theft a few years ago. I thought we caught it before they could do any harm.

Immediately get out the FACTA reports and police reports you filed when the ID theft occurred. 

Also, go to NACA Attorneys and hire a consumer attorney ASAP.  This is in District Court and they will follow all the rules you will need a lawyer.  You can probably find one to take this on a flat fee basis to send a dismissal to the court and the law firm with the proof that you were the victim of ID theft and that you did not take out this loan or default on it.

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Just now, texasrocker said:

If you can show that you properly reported identity theft and truthfully did not open this account and make any purchases on it then you can file a motion for dismissal.


It isn't a credit card account.  LendingClub is an online personal or business loan lender.  It would be even easier for the OP to show that they didn't take out this loan by having LC show what account/bank that money was direct deposited into.  

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1 hour ago, Clydesmom said:

It isn't a credit card account.  LendingClub is an online personal or business loan lender.  It would be even easier for the OP to show that they didn't take out this loan by having LC show what account/bank that money was direct deposited into.  

I never said it was.  Velocity Investments, LLC  is obviously a junk debt buyer.   The petition is worded exactly as any lawsuit filed by a JDB and in typical JDB fashion they failed to send a dunning letter prior to suing to better their chances of being granted a default judgment. 

If this defendant asked Lending Club for such information they (Lending Club ) would say they no longer have anything to do with the account. 

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Thanks to those who responded so far.  What I meant by Identity theft.  My wallet was lost or stolen a few years ago. It contained drivers licence, 3 credit cards and various forms of ID. I contacted the banks that issued the credit cards immediately and no charges were placed on the cards. That is what I meant by I thought there was no damage done at the time. I did not call the police. 

I then found out through the IRS that someone in Kentucky was using my SS number and my name on their W-2 forms . Making it look like I was working full-time in Texas and at a job as a security guard in Kentucky at the same time! The IRS  figured out that was not possible and went after the bad guy in Kentucky. I have no idea the outcome. But, all the Kentucky stuff was removed from my taxes.

Now my credit report shows 2 accounts I did not authorize. One for this LendingClub and one from 1st National Bank of Omaha. I contacted both by phone and was told they do not have a record of my account. I assume they have both been sold off to junk debt collectors.

I have to answer this summons in about 14 days.  Should I just do a general  denial?  My credit rating was very good until these 2 items popped up abut the same time according to the credit bureaus. 

Hiring an attorney is not an option. I am out of work due to health reasons and may not be able to return anytime soon.

Thanks again  for any advice. But, I do need to file some kind of answer. I don't want to lose by doing nothing .

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Yes, no matter what the circumstances may be you do need to file a general denial.   

File a dispute with the credit bureaus if you have not already done so and then file a motion to dismiss based on identity theft.   Attach to the motion records of your correspondence with the IRS and a notarized affidavit stating that you did not apply for or open this account, did not authorize anyone else to open or use it and did not benefit from it in any way shape or form. 

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