Being sued by Velocity Investments LLC

[chuckgst 15]

Just received a 20 day summons from Velocity Investments. When they first contacted me I sent them a Validation letter. I received a response, but not exactly what I asked for.  I am attaching the validation letter here. Their response was exactly what was included in the summons. All they sent me was a print out of the agreement and the truth in lending disclosure. I am attaching a redacted version of that as well.

I need help drafting a response. I know that that they have an arbitration clause in their contract and should probably use that instead of going to court.

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.)  

3. How much are you being sued for? 

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

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?  Florida

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

11. What is the SOL on the debt? To find out: 5 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).  Summons served. Must file answer within 20 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. Yes, sent July 2019

15. How long do you have to respond to the suit? 20 days. (This should be in your paperwork). 

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.

Count 1: Breach of Contract

1. This is an action for damages that do not exceed $15,000, exclusive of court costs
2. Defendant entered in an agreement a copy being attached hereto and made a part hereof
3. Plaintiff's predecessor performed all conditions required by the Agreement.
4. The account has been assigned to the Plaintiff
5. The defendant is in default of the agreement by failing to make payment and plaintiff is entitled to the sum of $, by virtue of default.

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

 

 

[BV80 2,816]

@chuckgst

Tbe validation request you sent has been floating around the internet for years and was created by someone who had no idea about FDCPA requirements.  Debt collectors are not required to provide the requested documentation in order to validate a debt.  In addition, they are not required to validate within 30 days of receiving a consumer’s request.

See if the credit card agreement has an arbitration provision.  If it does, read the following thread.

https://www.creditinfocenter.com/community/topic/329436-arbitration-overview-and-strategy-2018-most-up-to-date-info/

 

[chuckgst 15]

@BV80

Yes, there is an arbitration clause in the agreement. I am unsure of what this portion means though. 

If we (or LendingClub) elect arbitration, we (or LendingClub, 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 LendingClub, 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 LendingClub) pay them and we agree (or LendingClub 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.

[BV80 2,816]

Just now, chuckgst said:

@BV80

Yes, there is an arbitration clause in the agreement. I am unsure of what this portion means though. 

If we (or LendingClub) elect arbitration, we (or LendingClub, 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 LendingClub, 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 LendingClub) pay them and we agree (or LendingClub 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.

If the consumer initiates and files with the arbitration forum, his portion of the fees is limited to around $250.00.   Many times, it doesn’t get that far.  Read the thread in the link to learn more.

[Clydesmom 1,222]

57 minutes ago, chuckgst said:

When they first contacted me I sent them a Validation letter. I received a response, but not exactly what I asked for.

That is because you used a REALLY bad letter from the internet that is riddled with inaccuracies.  They are not required to provide any of that to comply with validation.  All sending that letter did was tell them you can cut and paste from the internet.

Use the arbitration strategy.  We have at least 3 members who have defeated Velocity doing that.

[chuckgst 15]

1 minute ago, Clydesmom said:

That is because you used a REALLY bad letter from the internet that is riddled with inaccuracies.  They are not required to provide any of that to comply with validation.  All sending that letter did was tell them you can cut and paste from the internet.

Use the arbitration strategy.  We have at least 3 members who have defeated Velocity doing that.

Live and learn, I guess. All I knew was the first step was to send a validation letter. 

[BV80 2,816]

6 minutes ago, chuckgst said:

Live and learn, I guess. All I knew was the first step was to send a validation letter. 

When did you send the validation request?

[chuckgst 15]

@BV80

July 31, 2019. They responded on August 5th with a copy of the borrower Membership Agreement, Loan Agreement and the Truth in Lending disclosure.

[Clydesmom 1,222]

39 minutes ago, chuckgst said:

Live and learn, I guess. All I knew was the first step was to send a validation letter. 

We all had to learn it.  If one person avoids that letter from reading this thread then it is worth it.

 

[chuckgst 15]

Since there is an arbitration agreement and I am in FL. Do I need to answer the summons or just file a motion to compel arbitration? 
I can't seem to locate Broward County, FL rules about this.

Also, I another letter from a different collection agency. CKS Financial. This was several months ago. Sent them a debt validation letter and got nothing back. A quick google search says they are the same company as Velocity. Well,  I just received an email from them saying Your payment failed and to call them. I haven't done anything other than request validation. These guys just seem really shady to me.

 

[chuckgst 15]

I'd appreciate it if i could have one of you fine folks take a look at these 2 documents. My answer, asserting arbitration as a defense, and then a motion to compel arbitration. If all looks well, I plan on filing both immediately. 

Thanks in advance for any help that you can provide.

 

 

 

[Raymond 0]

it looks good,  I may elect to use the same verbiage for my answer and MTC as well.  Thank you and good luck.

[chuckgst 15]

So I filed my answer and the MTC back on November 7th and since then the case has not moved. No answer from the plaintiff and nothing from the courts. Shouldn't I have heard something by now?

[LaneBlane 98]

On 12/5/2019 at 10:23 AM, chuckgst said:

So I filed my answer and the MTC back on November 7th and since then the case has not moved. No answer from the plaintiff and nothing from the courts. Shouldn't I have heard something by now?

Are you able to check the docket for your case online to see if there's been any activity since your MTC was filed?  Did your MTC include the required Certificate of Service?

[chuckgst 15]

On 12/7/2019 at 2:26 AM, LaneBlane said:

Are you able to check the docket for your case online to see if there's been any activity since your MTC was filed?  Did your MTC include the required Certificate of Service?

I have checked the docket and there is nothing. I did not include a certificate of service, but I did mail a copy to the plaintiff.

[chuckgst 15]

My motion is finally on the docket for tomorrow. Is there anything that I need to bring with me besides the the agreement showing the arbitration provision?

[chuckgst 15]

Not sure if anyone is following this thread, but I had my hearing this morning on my MTC. The judge granted a stay pending arbitation.

The plaintiff attorney wanted to go to mediation instead of arbitration because and I quote "Arbitration can be very expensive". 

On to the next step.

[Goody_Ouchless 510]

27 minutes ago, chuckgst said:

and I quote "Arbitration can be very expensive". 

You should have said "yea, exactly - for your client. Do you want to dismiss now?"

 

[chuckgst 15]

53 minutes ago, Goody_Ouchless said:

You should have said "yea, exactly - for your client. Do you want to dismiss now?"

 

I should have, but I just said no mediation, I would like to continue to arbitration please.

[Goody_Ouchless 510]

All good - they will fold.

[chuckgst 15]

Just filed the case with AAA and am sending everything off to the plaintiff's attorney. Now we wait and see.

[Science_guy 0]

Following this as I am in a similar situation.    On another thread, Velocity appears to have paid the fees for JAMS arbitration.  I am curious to see what happens for AAA arbitration.

[Dgree 7]

4 hours ago, Science_guy said:

Following this as I am in a similar situation.    On another thread, Velocity appears to have paid the fees for JAMS arbitration.  I am curious to see what happens for AAA arbitration.

It seems that Velocity is following high loan amounts into arbitration. They followed me and another member recently. 
 

They have spent 8k on a 20k+ alleged default. I believe in my case, they have spent more on the arbitration than they bought the account for. Which is interesting...

[Science_guy 0]

Strange....   Did you make any attempts to settle for a lesser amount (25%, 50%, etc...) after initiating arbitration?

[Goody_Ouchless 510]

9 hours ago, Dgree said:

They have spent 8k on a 20k+ alleged default. I believe in my case, they have spent more on the arbitration than they bought the account for. Which is interesting...

This is, perhaps, the biggest mistake people make in these matters - thinking that the debt value is somehow tied to what they paid for it. It's like if you bought a Picasso for a dollar at a garage sale - would you only spend fifty cents on a frame? If they paid 1K for your 20K debt and 8k to collect, then they doubled their money - why wouldn't they do that every time?