scarab

Sued by Velocity Investments in Nevada

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On another related subject:  Chain of Title for the alleged promissory note(s) in question - I think I should  demand that they prove chain of title for each and every microloan.

LendingClub is a Peer-to-peer lending platform.  For larger amounts (say over $10,000), there can be as many as 250 different lenders (individuals or companies).   Each lender diversifies their risk by loaning small amounts ($25 and $50 are typical amounts) to a large pool of borrowers.  They use LendingClub as a platform to loan money and spread risk.  Each "microloan" has a promissory note attached to it.  Below is a typical example.

The chain of title would be :  1) LendingClub member that loans money ---> assigns interest in microloan to Web Bank -->Webbank assigns to LendingClub --> LC assigned interest to Velocity

Actually, its unclear if its Webbank to LC or LC to Web bank.

Either way, it seems to me that I can demand (during discovery) documentation for the chain of title for each and every one of the 250+ loans that make up the total.  I mean the assignment contract and affidavit from the employee of LC that they have first hand knowledge of the loan in question (for each of the over 250 loans).

 

Quote

Promissory Note for $25

 
 

NON-NEGOTIABLE PROMISSORY NOTE

Borrower name and address: John Doe, 123 Main St, City, ST Zipcode (not visible to investors)

$25

December 15, 2010

For value received, I ("Borrower") promise to pay to the order of WebBank or any subsequent holder ("you" or "Lenders") of this Promissory Note (the "Note") the principal sum of $25 Dollars with interest as set forth below. I intend to be legally bound by this Promissory Note (the "Note"). I have read, understood, and agreed to all of the terms of this Note.

Interest. This Note bears interest during each calendar month from the date hereof until paid, at a fixed rate of 9.99 (%). Interest is calculated on a monthly basis upon the unpaid balance with each payment representing 1/12th of a year.

Payments. Principal and interest is to be paid during and throughout the period of 36 months in the following manner:

Payments of principal and interest in the amount of $0.80 Dollars are to be made by the Borrower to the Lender commencing January 14, 2011 , and on the same day of each successive month thereafter until December, 2013 , when the full amount of unpaid principal, together with unpaid accrued interest is due and payable. If the monthly anniversary is on the 29th, 30th, or 31st of the month, and the following month does not have a 29th, 30th, or 31st day, the monthly payment will be due on the last day of the month in which the payment was due. The last payment might be of a slightly different amount to adjust for rounding.

All payments on this Note are to be made in immediately available lawful money of the United States. Borrower authorizes Lender to debit Borrower's designated account by Automated Clearing House ("ACH") transfer for the amount of each payment due on each due date. Borrower may elect to make payments by personal check by contacting support@lendingclub.com or by regular mail at LendingClub Corporation, 370 Convention Way, Redwood City, California 94063, Attention: Loan Processing Department. If Borrower elects to make payments by check, borrower acknowledges and agrees that there will be a $15 check processing fee per payment, subject to applicable law. This authorization does not affect Borrower's obligations to pay when due all amounts payable under this Note, whether or not there are sufficient funds therefore in such accounts. The foregoing authorization is in addition to, and not in limitation of, any rights of setoff Lender may have. With regard to payments made by automatic withdrawal, Borrower has the right to stop payment of automatic withdrawals or revoke Borrower's prior authorization for automatic withdrawals by notifying Borrower's financial institution at least three (3) banking days before the scheduled date of transfer. Borrower will notify Lender of the exercise of Borrower's right to stop a payment or revoke Borrower's authorization for automatic withdrawals at least three (3) banking days before the scheduled date of transfer. All payments are to be applied first to the payment of all fees, expenses and other amounts due to Lender (excluding principal and interest), then to accrued interest, and the balance on account of outstanding principal; provided, however, that after an Event of Default (as defined below), payments will be applied to Borrower's obligations as Lender determines in its sole discretion.

Fees and Charges. A non-refundable origination fee paid by Borrower to LendingClub Corporation, in the amount and on the terms set forth in Borrower's agreement with LendingClub Corporation, will be deducted from Borrower's loan proceeds, so the loan proceeds delivered to Borrower will be less than the full amount of Borrower's loan request. Borrower acknowledges that the origination fee will be considered part of the principal of Borrower's loan and is subject to the accrual of interest. Borrower agrees to pay a fee of $15 if ACH transfers or checks are returned or fail due to insufficient funds in Borrower's account or for any other reason. Borrower acknowledges that the bank that holds Borrower's designated account may charge a fee in addition to this fee. Each attempt to collect a payment is considered a separate transaction, so an unsuccessful payment fee will be assessed for each failed attempt. If Borrower's payment is more than 15 days late, Lender may charge a late fee in an amount the greater of 5% of the outstanding payment or $15. If Borrower's payment is more than 30 days late, Lender shall charge such late fee. These fees may be collected using ACH transfers initiated by us from Borrower's designated account. Any such late fee assessed is immediately due and payable. Any payment received after 6:00 P.M., Salt Lake City time, on a banking day is deemed received on the next succeeding banking day.

Prepayments and Partial Payments. Borrower may make any payment early, in whole or in part, without penalty or premium at any time. Any partial prepayment is to be applied against the principal amount outstanding and does not postpone the due date of any subsequent monthly installments, unless Lender otherwise agrees in writing. If Borrower prepays this Note in part, Borrower agrees to continue to make regularly scheduled payments until all amounts due under this Note are paid. Lender may accept late payments or partial payments, even though marked "paid in full", without losing any rights under this Note.

Use of Funds.Borrower certifies that the proceeds of the loan will not be used for the purpose of purchasing or carrying any securities or to fund any illegal activity.

Default. Borrower will be deemed in default (each, an "Event of Default") of Borrower's obligations under this Note if Borrower: (i) fails to pay timely any amount due under this Note; (ii) files or has instituted against Borrower any bankruptcy or insolvency proceedings or makes any assignment for the benefit of creditors; (iii) dies; (iv) commits fraud or makes any material misrepresentation in this Note; or (v) fails to abide by the terms of this Note. Upon the occurrence of an Event of Default, Lender may exercise all remedies available to it under applicable law, including demand upon Borrower to immediately pay all amounts due under this Note. Lender reserves the right to report loan payment delinquencies of 30 days or longer to one or more consumer reporting agencies in accordance with applicable law. Borrower agrees to pay all costs of collecting any delinquent payments, including reasonable attorneys' fees, as permitted by applicable law.

Miscellaneous.

This Note is not negotiable. Notwithstanding the foregoing, Lender may assign this Note, including without limitation, to LendingClub Corporation, without notice to Borrower. Borrower may not assign this Note without the prior written consent of Lender. This Note inures to the successors, permitted assigns, heirs and representatives of Borrower and Lender.

Borrower hereby waives demand, notice of non-payment, protest, and all other notices or demands whatsoever, and hereby consents that without notice to and without releasing the liability of any party, the obligations evidenced by this Note may from time to time, in whole or part, be renewed, extended, modified, accelerated, compromised, settled or released by Lender.

Any changes to this Note must be in writing signed by Borrower and Lender. Notices will be mailed electronically to the addresses provided.

Controlling Law. Lender is located in the State of Utah and this Note has been executed and delivered in the State of Utah and is deemed a contract made under such state's law. The provisions of this Note will be governed by federal laws and the laws of the State of Utah to the extent not preempted, without regard to any principle of conflicts of law. The unenforceability of any provision of this Note shall not affect the enforceability or validity of any other provision of this Note.

STATE LAW NOTICES:

CALIFORNIA RESIDENTS ONLY: A married applicant may apply for a separate account. If Lender takes any adverse action as defined by § 1785.3 of the California Civil Code and the adverse action is based, in whole or in part, on any information contained in a consumer credit report, Borrower has the right to obtain within 60 days a free copy of Borrower's consumer credit report from the consumer reporting agency who furnished the consumer credit report and from any other consumer credit reporting agency that complies and maintains files on consumers on a nationwide basis.

CALIFORNIA AND UTAH RESIDENTS: As required by California and Utah law, Borrower is hereby notified that a negative credit report reflecting on Borrower's credit record may be submitted to a credit reporting agency if Borrower fails to fulfill the terms of Borrower's credit obligations.

KANSAS (and IOWA residents if the principal amount of this loan exceeds $20,000): IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. LENDER MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.

MARYLAND RESIDENTS ONLY: Lender elects to make this loan pursuant to Subtitle 10 (Credit Grantor Closed End Credit provisions) of Title 12 of the Maryland Commercial Law Article only to the extent that such provisions are not inconsistent with Lender's authority under federal law (12 U.S.C. § 85, § 1463(g), or § 1831d, as appropriate) and related regulations and interpretations, which authority Lender expressly reserves.

MASSACHUSETTS RESIDENTS ONLY: Massachusetts law prohibits discrimination based upon marital status or sexual orientation.

MISSOURI AND NEBRASKA RESIDENTS: ORAL LOAN AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF SUCH DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT BORROWER(S) AND THE LENDER AND ANY HOLDER OF THIS NOTE FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

NEW JERSEY RESIDENTS: The section headings of the Note are a table of contents and not contract terms. Portions of this Note with references to actions taken to the extent of applicable law apply to acts or practices that New Jersey law permits or requires. In this Note, actions or practices (i) by which Lender is or may be permitted by "applicable law" are permitted by New Jersey law, and (ii) that may be or will be taken by Lender unless prohibited by "applicable law" are permitted by New Jersey law.

NEW YORK, RHODE ISLAND and VERMONT RESIDENTS: Borrower understands and agrees that Lender may obtain a consumer credit report in connection with this application and in connection with any update, renewals for extension of any credit as a result of this application. If Borrower asks, Borrower will be informed whether or not such a report was obtained, and if so, the name and address of the agency that furnished the report. Borrower also understands and agrees that Lender may obtain a consumer credit report in connection with the review or collection of any loan made to Borrower as a result of this application or for other legitimate purposes related to such loans.

OHIO RESIDENTS ONLY: The Ohio laws against discrimination require that all creditors make credit equally available to all credit-worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with the law.

WISCONSIN RESIDENTS ONLY: For married Wisconsin residents, Borrower's signature confirms that this loan obligation is being incurred in the interest of Borrower's marriage or family. No provision of any marital property agreement (pre-marital agreement), unilateral statement under § 766.59 of the Wisconsin statutes or court decree under § 766.70 adversely affects Lender's interest unless, prior to the time that the loan is approved, Lender is furnished with a copy of the marital property agreement, statement, or decree or have actual knowledge of the adverse provision. If this loan for which Borrower is applying is granted, Borrower will notify Lender if Borrower has a spouse who needs to receive notification that credit has been extended to Borrower.

Borrower Name (only screen name visible to lenders)

 

BY: LENDINGCLUB CORPORATION
ATTORNEY-IN-FACT FOR BORROWER
(SIGNED ELECTRONICALLY)

 

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3 minutes ago, scarab said:

Its a copy of the one the JDB's attorney filed with the court with the complaint.  They redacted some items, but before I posted it here, I redacted more - anything that could be used to identify me on this public forum.   Back when they sent me the first Dunning, they sent me an un-redacted version of these same documents.

Notice that the docs were downloaded from a website.   That's why some of the pages show a date range of 2006 to 2015.  No idea who "Anthony" could be.  Perhaps it's someone who works for LendingClub or the JDB.   OR it could be a copy of an agreement that belonged to a borrower named Anthony.

On page 10, I think I have an explanation for "Adrian" and "featured borrower".  If you go to Lending Club's website, they show "featured borrowers", the person's picture and first name, and then give a few details.  The purpose is to advertise happy borrowers for the company.  "Adrian" was the "featured borrower" on that webpage.   It's the same for the other "featured borrowers".

On page 22, you note that the "screen name of borrower" shows that the doc is not the original borrower agreement.  That's not the only proof.   On page 19, none of the blanks are filled in.

NRS 719.100 “Electronic signature” defined. “Electronic signature” means an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

The above tells me they have to provide something that shows you "signed" (agreed to) the agreement.   It would seem that there would have to be something on page 10 that would have to show an electronic signature.   An attorney could tell you.

BUT, even if they could provide an electronic signature, they still haven't provided a copy of the agreement (with the blanks filled in) that shows what you agreed to.

 

 

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@BV80

I agree with everything you said - Anthony appears to be an employee of LC.  I should point that out when invalidating this document with the court.  Apparently, they logged in under "Anthony's" account at LC, so how could this possibly be my loan document?  Thanks for pointing that out!

As for featured borrowers appearing on this "document" my argument is that marketing stuff would not appear on an actual loan agreement.  It would appear on a website where they were showing you a sample of a loan agreement.

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7 minutes ago, scarab said:

@BV80

I agree with everything you said - Anthony appears to be an employee of LC.  I should point that out when invalidating this document with the court.  Apparently, they logged in under "Anthony's" account at LC, so how could this possibly be my loan document?  Thanks for pointing that out!

As for featured borrowers appearing on this "document" my argument is that marketing stuff would not appear on an actual loan agreement.  It would appear on a website where they were showing you a sample of a loan agreement.

Exactly.   I don't think it would appear on the actual document.  But unless you logged into an account, I don't know that we could say for sure.  But I'd still make the argument anyway.  Let Velocity try to explain it.  :)

From the way the pages are shown, I'm not sure if there's a "featured borrower" on the Borrower Documents and Information pages or not (starting on page 9).

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44 minutes ago, scarab said:

Either way, it seems to me that I can demand (during discovery) documentation for the chain of title for each and every one of the 250+ loans that make up the total.  I mean the assignment contract and affidavit from the employee of LC that they have first hand knowledge of the loan in question (for each of the over 250 loans).

Do you mean 250+ chains of title?

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8 minutes ago, BV80 said:

Exactly.   I don't think it would appear on the actual document.  But unless you logged into an account, I don't know that we could say for sure.  But I'd still make the argument anyway.  Let Velocity try to explain it.  :)

From the way the pages are shown, I'm not sure if there's a "featured borrower" on the Borrower Documents and Information pages or not (starting on page 9).

Page 10 "Breakdown of Loan" showing principal balance, etc.   has a featured borrower at the bottom.

While discussing this, I just remembered something else the attorney I saw a couple of months ago told me:  A few years ago, the local judges in my area became tired of all the creditor lawsuits being filed and threw a bunch of them out due to bad documentation.  This is corroborated by the document CCRP626 posted (page 5) http://www.nationallist.com/image/cache/White_Paper_Nevada_Debt_Collection.pdf

My hope here is that by attacking their document enough, and filing a motion to strike, the judge will side with me.

 

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3 minutes ago, BV80 said:

Do you mean 250+ chains of title?

Yes.  250+ microloans were originated, and so my argument is that each loan must have a chain of title.  Now, they were "bundled" by LC and sold to Velocity, but that is OK.  I still say their must be  a chain of title for each loan that starts with the original lender - the member of LendingClub that put up the money.

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from the document CCRP posted:

 

Quote

Nevada courts have been cracking down on claim documentation, and especially in the case of retail debt collection (although the same rules hold true for commercial debt). In the case of credit card debt, NRS  97A.160 requires issuers bringing court action to establish the debtor’s contractual liability by one of two ways: either by submitting the cardholder’s written application for a credit card, or by offering evidence  that the cardholder incurred charges on the account and made payments thereon. In practice, however, many of the (state) justice court judges of Reno and Las Vegas will refuse to apply the six-year statute of limitations, if creditors do not produce a written application/agreement, enforcing instead only the four-  year statute applicable to open accounts (i.e., without a written contract). Furthermore, Nevada courts will refuse to enforce a higher-than-statutory pre-judgment interest rate on the debtor’s unpaid balance unless the creditor submits a copy of the written contract authorizing a higher rate. See NRS 17.130(2), NRS  99.040(1). As the current statutory rate (the prime interest rate plus 2 percent) is 5.25%, you can see   why having a copy of the written agreement can be important. So while creditors are technically free to choose their method of establishing the debtor’s liability, best practice is to supply the court with a written contract.

In addition to providing proof of contractual obligation, creditors must also be prepared to provide evidence of the amount owed on account. NRS 97A.160(1)(b). This evidence can be in the form of photocopies   of billing statements, or can come from the issuer’s digital or microfilm/microfiche records.                       Id. In either case, however, creditors must authenticate these records to the court via written and signed affidavits. Nevada courts regularly find these affidavits insufficient for judgment unless they fully satisfy several requirements. NRS 97A.160(2) lists these authentication requirements, offering either of two options for compliance. Under one option, the affiant must specifically affirm that he or she is the custodian of the records offered as evidence, that the offered records “were made in the ordinary course of the issuer’s business,” and that the records “are true and accurate copies of the originals retained by the issuer.” Per NRS 97A.160(2)(a), a creditor may alternatively follow the authentication requirements applicable to banking and financial institution records, as set forth in NRS 52.450-.480. However, as these latter provisions come from the portion of Nevada code set aside for rules of evidence, some  judges may require compliance with their additional requirements, notwithstanding the apparent choice provided by NRS 97A.160. NRS 52.450-.480 require essentially the same phrasing as NRS  97A.160(2)(b) (as listed above), but require the addition of an assertion “that the original record was  made at or near the time of the act or event concerning which information was recorded, by or from information transmitted by a person with knowledge of the act or event.” NRS 52.460(1). The evidentiary rules provide a form for the affidavit, and state that affidavits submitted for authentication purposes “must be substantially in the form prescribed.” NRS 52.460(1). This form may be found in NRS 52.260(3), and contains the essential phrasing proscribed above.

Authentication can often prove more difficult for a debt purchaser, because many judges will require that the affidavit be made by the custodian of records for the issuer, not just the current owner of a debt, because the statutory language requires assertions about the issuer’s records and record-keeping practices. See NRS 97A.160(2)(b), EDCR 2.70, WDCR 26. Accordingly, debt purchasers would be well advised to request and obtain an affidavit from the issuer that meets the above mentioned requirements, and to do so at the time of purchasing the debt (instead of waiting until litigation becomes necessary).
 

 

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9 minutes ago, scarab said:

Yes.  250+ microloans were originated, and so my argument is that each loan must have a chain of title.  Now, they were "bundled" by LC and sold to Velocity, but that is OK.  I still say their must be  a chain of title for each loan that starts with the original lender - the member of LendingClub that put up the money.

I doubt you can make such a request because those loans are not the subject of the lawsuit.    The loan they allege you owe is the only one that matter.

On the bill of sale between Lending Club and Velocity, have you noticed Darin Cline?    Maybe I'm reading it the wrong way, but it appears he's signing as SVP for every company listed.

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I think I can make the request.  I may not get it granted on a motion to compel (as they will surely balk at the initial request), but I think I can demand it in discovery.  One thing I have learned the hard way is that discovery has pretty wide latitude.  One of my goals here is to run up their costs

 

Darin Cline: That's an interesting observation.  I did not notice this.  But I am not sure how can I use this against them?

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Just now, scarab said:

That's an interesting observation.  I did not notice this.  But I am not sure how can I use this against them?

Well, it appears that those companies are connected to Lending Club somehow.  Perhaps that's how he can sign for each company but the doc doesn't make such a claim.    Let's just mull it over and work on it only if you need an extra argument.

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59 minutes ago, BV80 said:

Notice that the docs were downloaded from a website.   That's why some of the pages show a date range of 2006 to 2015.  No idea who "Anthony" could be.  Perhaps it's someone who works for LendingClub or the JDB.   OR it could be a copy of an agreement that belonged to a borrower named Anthony.

On page 10, I think I have an explanation for "Adrian" and "featured borrower".  If you go to Lending Club's website, they show "featured borrowers", the person's picture and first name, and then give a few details.  The purpose is to advertise happy borrowers for the company.  "Adrian" was the "featured borrower" on that webpage.   It's the same for the other "featured borrowers".

On page 22, you note that the "screen name of borrower" shows that the doc is not the original borrower agreement.  That's not the only proof.   On page 19, none of the blanks are filled in.

NRS 719.100 “Electronic signature” defined. “Electronic signature” means an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

The above tells me they have to provide something that shows you "signed" (agreed to) the agreement.   It would seem that there would have to be something on page 10 that would have to show an electronic signature.   An attorney could tell you.

BUT, even if they could provide an electronic signature, they still haven't provided a copy of the agreement (with the blanks filled in) that shows what you agreed to.

 

 

Eagle Eyes. :)

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I need to start working on the next stage.  I anticipate being served any day now, so I would like to draft my response to their complaint now, so I don't have to stress and have them ready to file right after I am served.  I would like to get everyone's (the people on this forum that have success fighting JDBs) feedback  on my response.

I also would like to know about filing counter-claims against velocity.  What claims can I file in county court, and what is the mechanism or process by which I do this?

My response will, of course, deny most of their allegations, and state my affirmative defenses.  I think I can counter-sue by alleging them of perpetuating fraud (or something along those lines) upon the court, due to their false promissory note, false affidavit, and incomplete and/or false bills of sales.  What else can I counter sue them for in the county court?

I've been looking at suing them for FRCA and FDCPA violations, but as I understand it, this will need to be a completely separate suite filed in federal court, a venue I am familiar with as I sued a large company years ago for insurance fraud (used expensive/contingency attorneys then, due to the amounts involved).  I am planning on drafting this up and filing myself as well.  I have been researching prior cases against Velocity.

 

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10 hours ago, scarab said:

My response will, of course, deny most of their allegations, and state my affirmative defenses.  I think I can counter-sue by alleging them of perpetuating fraud (or something along those lines) upon the court, due to their false promissory note, false affidavit, and incomplete and/or false bills of sales.  What else can I counter sue them for in the county court?

Unless the debt is not yours, there's no fraud.  The copy of the promissory note is not necessarily false.   It's just a generic copy and not the one you allegedly signed.  How do you know the affidavit and bills of sale are false?  In regard to incompleteness, unless your state laws require a bill of sale to contain certain information, then it's not necessarily incomplete.

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On 7/29/2016 at 10:33 AM, BV80 said:

Unless the debt is not yours, there's no fraud.  The copy of the promissory note is not necessarily false.   It's just a generic copy and not the one you allegedly signed.  How do you know the affidavit and bills of sale are false?  In regard to incompleteness, unless your state laws require a bill of sale to contain certain information, then it's not necessarily incomplete.

Neither were signed by an employee of LendingClub.  The affidavit actually says so. It says they are an employee of the JDB.  Fairly certain NV law (or at the very least, my local judges) require an affidavit from a person with first hand knowledge of the account - someone that works for the OC.

With respect to the bill of sale - I am guessing with this one as the person signed for a whole bunch of different companies.  I think my state law or at least judges in my area will require better documentation from a JDB.  I think I just have to object to the documents and/or get them stricken from the record.

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On 7/29/2016 at 2:14 AM, scarab said:

I also would like to know about filing counter-claims against velocity.  What claims can I file in county court, and what is the mechanism or process by which I do this?

Head to the Nevada section of the NCLC doc. Atty fees are allowed, so you might want to see about an attorney reviewing/taking on the case.

https://www.nclc.org/images/pdf/udap/analysis-state-summaries.pdf

Your Rules 13 and 15 in the NRCP cover counterclaims. You can amend your answer at a later date with the court's permission to include them if you don't have time to research them/see an attorney before your answer is due.

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Thanks for that.  That's new info for me. 

On another matter, I just checked the docket and it appears that a few days ago, a summons was issued.  I haven't been served so does this mean the 20 day response clock has not started yet?

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8 minutes ago, scarab said:

Thanks for that.  That's new info for me. 

On another matter, I just checked the docket and it appears that a few days ago, a summons was issued.  I haven't been served so does this mean the 20 day response clock has not started yet?

The response time starts when you're served. 

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29 minutes ago, scarab said:

On another matter, I just checked the docket and it appears that a few days ago, a summons was issued. 

It could still take a few weeks for them to serve you.  Basically they have a couple of Sheriff's whose whole job is to serve summons.  Depending on how many they have it could take a while.  Don't fret and keep doing what you are doing.

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I'm working on my response at the moment.  I will post it here for feedback shortly.  I anticipate being served any day now so I will have 20 days to submit my reply to the court.  Anyone interested in giving me feedback, please do so quickly, as I do not wish to wait the full 20 days before replying.  I am a newb so I don't want to mess up things like this.

 

On to my questions:  The documents the plaintiff (Velocity) submitted with their complaint show the terms and conditions, etc.. I am currently attacking these documents and will claim they are not the actual promissory note.  They contain verbiage about arbitration as @CCRP626 and others have pointed previously out on this thread.  I've been looking at prior suits filed with the court on "collection of actions" and noticed a few went to arbitration.  I suspect that the judge will push my case into arbitration.   

I've been involved with arbritration in the past, but not in Nevada.  It was over a real estate matter, and I was one of the plaintiffs.  We had 3 people "judging" the case, and they made a decision by vote (in our favor in that one).  My questions are:

For debt collection suits, will I get 3 judges?

How much will it cost Velocity (I heard its around $1000) to open arbitration? 

How much will it cost me (I heard around $250) ?

Is arbitration handled locally?

What is the venue?

Do I argue my case as if it were in court, demand discovery, etc.?

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There are several different varieties of 'arbitration'.  Unless you have a contract that specifies an arbitration administrator (JAMS or AAA), generally arbitration will mean court arbitration, which is very cheap for the plaintiff and basically a shoe-in for the debt collector to get what they want.  You do not want this kind of arbitration.  The numbers you're quoting look like JAMS' numbers for opening a case ($1250 to open, and max $250 for the consumer party), but that doesn't apply to court arb.  In any case, arbitration will be handled locally.  Third party arbitrators have their own rules, which are available online or, at least with JAMS, will be sent to you when a case is opened.  I believe Anon Amos has experience with a judge and plaintiff trying to push his case into arbitration against his will.  The Courts love arb because it gets stuff off their plate, so if you go the traditional court route it's probably wise to be prepared to fight an attempt to push you into court arb.

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