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Hello All, 

I am looking for some help. I was recently sued and I don't know what to do. I'm trying to stay calm, but I am internally freaking out. If you one can provide any details, I would greatly appreciate. I'm interested in the arbitration path, but I'm not sure if that will help me or hurt me. Below are the details of my situations. I currently live in GA and I'm recovering college graduate. I don't have any money to spare, but I also don't want a judgement on my public record. Please Help Me!

 

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.)  Ragan & Ragan

3. How much are you being sued for?  Under $4K

4. Who is the original creditor? (if not the Plaintiff) Lending Club, maybe Web Bank

5. How do you know you are being sued? (You were served, right?) Served in person 

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

7. Was the service legal as required by your state? yes

Process Service Requirements by State - Summons Complaint

8. What was your correspondence (if any) with the people suing you before you think you were being sued? nothing

9. What state and county do you live in?  Georgia, Dekalb Conty

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations) August 2016

11. What is the SOL on the debt? To find out: 6 yrs

Statute of Limitations on Debts

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. Must file answer within 30 days.

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

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. No

15. How long do you have to respond to the suit? 30 days. (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.

  • Defendant is a resident of this county and is subject to the jurisdiction of this court
  • Defendant resides and may be served at 'insert my address'
  • Defendant executed a electronic transaction entering a loan agreement, identified as 'account' with Web Bank. This was serviced by LendingClub Corporation
  • Defendant received the load proceeds
  • Defendant breached the loan agreement by failing to pay as agreed and left a balance
  • Webbank has transferred all their rights, title, and interest in this loan account to lending club
  • Plaintiff purchased the loan agreement and received written agreement of the debt at issue in this action
  • Despite demand by Plaintiff, Defendant has failed to pay amount due on the loan amount
  • Defendant is liable to Plaintiff for the sum of $XXXX.XX in principal, $XXX.XX in interest and fees, and costs of action

Did you receive an interrogatory (questionnaire) regarding the lawsuit?  No.

Here is an example of what the summons/complaint may look like: Sued by a Debt Collector - Learn How to Fight Debt Lawsuits

16. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits.  Loan Agreement printed offline, Loan Disclosure printed off line, Certification of Loan Sale, Bill of Sale, two spreadsheets w/ principal, interest, payment breakdown and payment history

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Search the forums.  We have one or two people who have defeated Velocity with arbitration.  It is in the Lending Club/Web Bank contract to be able to arbitrate.  Fortunately you are probably in Magistrate Court which means you can use the pre-printed answer sheet and simply check off "Denied" and have it stamped by the clerk.  They will give you a copy and send you a notice in the mail of when the trial is.  You cannot file motions in advance in Magistrate Court so spend this time drafting a good MTC arbitration and have 3 copies of it with you on the day of trial.  

The day of trial they will send  you to the hallway to try and negotiate.  Despite what scary talk you hear DO NOT cave and insist on arbitration.  Make sure you are able to argue that point to the Magistrate if necessary.  If it is approved Velocity will fold.  

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On 9/28/2018 at 10:18 PM, Clydesmom said:

The day of trial they will send  you to the hallway to try and negotiate.  Despite what scary talk you hear DO NOT cave and insist on arbitration.  Make sure you are able to argue that point to the Magistrate if necessary.  If it is approved Velocity will fold.  

Thank you for your response! How would I argue that I want to go to arbitration? I didn’t realize I would need to argue my point. I thought I had a choice.

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On 10/1/2018 at 8:00 PM, apples4apples said:

Thank you for your response! How would I argue that I want to go to arbitration? I didn’t realize I would need to argue my point. I thought I had a choice.

Look here:

 

You need to study this to learn your rights regarding arbitration.  You need to draft a MTC Arb to present to the court and plaintiff's lawyer.    What is in the MTC Arb is how you argue in favor of arbitration.  Basically, it is your right under the contract, and arbitration is favored by law, and is supported by the US Supreme Court.

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On 10/1/2018 at 8:00 PM, apples4apples said:

Thank you for your response! How would I argue that I want to go to arbitration? I didn’t realize I would need to argue my point. I thought I had a choice.

You can also look at the threads specifically for GA I just posted above you asking that question.

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I received this summons today I’m being sued by them for a loan that was fraudulently taken out. I have police reports can I still ask for arbitration in Virginia 

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On 8/23/2019 at 3:03 PM, Mjp said:

I received this summons today I’m being sued by them for a loan that was fraudulently taken out. I have police reports can I still ask for arbitration in Virginia 

Start your own thread for better help.  If you have police reports you have a solid defense in court and do not need to use arbitration.

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