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Ash4710

Being Sued by Velocity Investments (Lending Club)

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I'm 2 months from statue of limitations expiring on Lending Club account and just found out Velocity is suing for this account. Last payment made was 8/1/2016. Statue in my state is 3 years. Balance is $2600. Have not been served yet but do see they filed on my courts website. I called lawyer handling case (Clarkson and Hale) and they offered $50 a month on full balance and we would have to sign a confessional judgement that they said would not be filed unless we defaulted on the payment arrangement. At this time a lump sum settlement isn't possible for us.  Is it possible to get a better offer if we wait until after being served to try to negotiate? What if we answer and deny the claim will they still come to court offering a payment agreement or will we be forced into a judgement if we don't have a lump sum to offer? I also read on here about the arbitration clause. How would I answer and include that? I'm new to this and would love some advice. 

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You generally do NOT get a better deal if you wait until after being served unless there are special circumstances.  

For example, an arbitration agreement. 

Do a Google search on Consumer Financial Protection Board credit card agreements.  They have ALL the agreements. 

Find the agreement that matches your card. 

Q1.   Does this card agreement have an  clause?

If so, you may with to copy and paste the agreement in a reply to this thread.  

Q2.  Can arbitration be used in whatever court this was filed in?  We need to know the state and county, and what type of court this is  

Some arbitration agreements can’t be used in small claims.  Others can. Or this court may or may not be a small claims court.  

If there is an arbitration agreement, and if the agreement can be used in your case, you can probably beat this.  

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2 hours ago, Ash4710 said:

 Is it possible to get a better offer if we wait until after being served to try to negotiate?

Than $50 a month?  No.  I am surprised they went that low.

2 hours ago, Ash4710 said:

What if we answer and deny the claim will they still come to court offering a payment agreement or will we be forced into a judgement if we don't have a lump sum to offer?

There is no way to predict.  They might still offer a payment agreement but want more money.  Some creditors get ticked off if you reject the offer and refuse to negotiate after that.  ANY payment agreement they make is going to require a consent judgment if they forgo the court case.

2 hours ago, Ash4710 said:

I also read on here about the arbitration clause. How would I answer and include that?

You file your answer asserting lack of jurisdiction and an affirmative defense of private contractual arbitration.  Then you file a separate motion to compel arbitration.

If the motion is approved you can negotiate for a mutual walk away where you pay nothing but have a back up plan should the motion not be approved.

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1 minute ago, BackFromTheDebt said:

Do a Google search on Consumer Financial Protection Board credit card agreements.  They have ALL the agreements. 

Find the agreement that matches your card. 

This isn't a credit card.  Velocity is the JDB that gets all the defaulted Lending Club loans.  There is no card agreement the loan documents the OP signed will determine if arbitration is an option.

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5 hours ago, Ash4710 said:

 I also read on here about the arbitration clause.

Arbitration may be an excellent option for you.

Are you able to log into your account at lendingclub.com?  If so, you can access your loan documents to find out what the arbitration provision is for your particular loan.  (Save a copy of the loan agreements to your hard drive so they're easy to refer to.)  You can also do an email search to see if any documents were emailed to you at the time the loan was initiated.

5 hours ago, Ash4710 said:

called lawyer handling case (Clarkson and Hale) and they offered $50 a month on full balance and we would have to sign a confessional judgement that they said would not be filed unless we defaulted on the payment arrangement.

The moment one of your payments is late, the attorneys could file the judgment paperwork against you.  Keep this in mind if you agree to a payment arrangement with them.

 

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