Need help with Velocity Investments in CA

[Jumbalaya]

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.)

Mandarich Law Group, Chicago, Ill

3. How much are you being sued for?

8,000

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

Lending Club

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

Served Summons

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

In Person

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

I assume so

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?

None

9. What state and county do you live in?

San Diego, CA

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

09/2016

11. When did you open the account (looking to establish what card agreement may be applicable)?

04/2016

12. What is the SOL on the debt? To find out:

4

Statute of Limitations on Debts

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

Summons served this past weekend

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

No

15. Did you request debt validation before the suit was filed? Note: if you haven't sent a debt validation request before being sued, it likely won't help create FDCPA violations, but disputing after being sued could be useful to show the court that you dispute the debt ('account stated' vs. 'breach of contract').

No 

16. 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?

30 days, 28 days remaining.

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

17. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits.

Cause of Action:

1. Breach of Contract

2. Open Book Account

Exhibit A. Borrowers Documents and Info
Exhibit B. A printout showing payment history

18.  How did you find out about this site?

Googled lawsuit from Velocity Investments.

I originally got the loan to help cover living expenses while work was slow, the slowdown ended up lasting much longer and I was unable to keep up with the payments.  I moved shortly after getting the loan because I couldn't afford to live there any more so the processor apparently took a while to find me but I was just served over the weekend, never got any mail forwarded from Velocity.

I did read in the borrowers agreement that arbitration is allowed in section 20 but have a few questions that maybe someone here can help me with.

Is arbitration my best option?

Section 20(d) worries me though. 

d. If we (or the subsequent holder) elect arbitration, we (or the subsequent holder, as the case may be) shall pay all the administrator’s filing costs and administrative fees (other than hearing fees). If you elect arbitration, filing costs and administrative fees (other than hearing fees) shall be paid in accordance with the rules of the administrator selected, or in accordance with countervailing law if contrary to the administrator’s rules. We (or the subsequent holder, as the case may be) shall pay the administrator’s hearing fees for one full day of arbitration hearings. Fees for hearings that exceed one day will be paid by the party requesting the hearing, unless the administrator’s rules or applicable law require otherwise, or you request that we (or the subsequent holder) pay them and we agree (or the subsequent holder agrees) to do so. Each party shall bear the expense of its own attorneys’ fees, except as otherwise provided by law. If a statute gives you the right to recover any of these fees, these statutory rights shall apply in the arbitration notwithstanding anything to the contrary herein.

Does this make arbitration cheaper for the JDB and still worth pursuing?

Would I only be liable for $250 for JAMS if I go that route?  

I am also worried because CA has the California Arbitration Act, CCP § 1281.2

I did not waive my right to compel arbitration with the OC, would (c) be grounds for the civil case to still go through?  I don't think there is a possibility of conflicting rulings so maybe arbitration is still an option.  I have been reading on other posts where people successfully fought in court against JDB and winning or settling out.  Is this the better option?  I have found the GD, BOP and have filled them but wondering if I should go for the MTC first.  If the MTC gets denied, I still have the court route.

 

Thanks for everyone's help in advance.