Sign in to follow this  
ReclaimMyTime

Velocity Investments LLC Strikes Again!

Recommended Posts

ūüíľ¬†Yesterday, I was served a citation - debt claim - in person. The citation states that I am being sued by Velocity Investments LLC as an Assignee of Springleaf Funding Trust 2017-A. Their attorney from Rausch Sturm has attempted once to collect a debt owed before pursuing a lawsuit. I cannot locate an original contract with Springleaf in my files, so I suppose that a MTC arbitration is out of the window.

I have a draft of my answer - general denial - typed. Due to my financial circumstance, I plan on challenging their allegations in court on my own with hopes that the Magistrate will dismiss the case with prejudice. I haven't been to Justice Court for a lawsuit before, so I'm unsure how the interaction will play out. 

From other tidbits of information I can find about lawsuits regarding Junk Debt Buyers, arbitration is the best route to getting the plaintiff (JBD) to fold. However, I don't have a contract of the consumer loan from Springleaf. Therefore, I can't prove the dispute is eligible for arbitration. Can I rely on them not having enough proof of account ownership to win the case?

Let's play Devil's Advocate. If the Plaintiff did buy the debt and now "owns" the account, what would they need to provide in order for the Magistrate to rule in favor of the Plaintiff (JDB)?

If the plaintiff wins the case, they can put a levy on my bank account. All in all, I really wish I had learned about loans, taxes, and investments when I was a teenager. Now, I'm dealing with the consequences in my late twenties from decisions I made when I was in my early (ill-informed) twenties.

Given my situation - wanting to fight this in court - what is the best advice to win the case? Your help is very much appreciated!

1. Who is the named plaintiff in the suit? Velocity Investments LLC Assignee Of Springleaf Funding Trust 2017-A (OneMain sent me a letter stating they sold the account to Velocity, not assigned).

2. What is the name of the law firm handling the suit? Rausch Sturm.

3. How much are you being sued for? $1085.51 plus interest, court costs, and "all other relief to which Plaintiff is entitled."

4. Who is the original creditor? (if not the Plaintiff) Springleaf Funding Trust 2017-A (However, I don't recall an agreement with this entity; the name is unfamiliar. It seems to be an alias for OneMain Financial, which I do remember dealing with).

5. How do you know you are being sued? (You were served, right?) I was served the citation by a legal process server.

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

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? I didn't pay them a penny and never responded to the letter their law firm sent me.

9. What state and county do you live in? Harris County, Texas.

10. When is the last time you paid on this account? (looking to establish if you are outside of the statute of limitations) July 2018.

11. When did you open the account (looking to establish what card agreement may be applicable)? November 2016.

12. What is the SOL on the debt? To find out: 4 years.

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 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). The court website only states that the case is "active."

14. Have you disputed the debt with the credit bureaus (both the original creditor and the collection agency?) No,  I have not.

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, I did not.

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?

14 days to respond. I did not receive a questionnaire regarding the lawsuit.

  • On or about November XX, 2016 SPRINGLEAF FUNDING TRUST 2017-A and Defendant entered into a Contract for the extension of credit bearing account number XXXX. SPRINGLEAF FUNDING TRUST 2017-A performed it obligations under the Contract by extending credit to Defendant and/or lending money to Defendant. Defendant received and/or made use of the credit extended/money lent by SPRINGLEAF FUNDING TRUST 2017-A according to the agreed upon terms of the contract.
  • Despite Defendant's receipt and use of credit/funds from SPRINGLEAF FUNDING TRUST 2017-A, Defendant did not repay SPRINGLEAF FUNDING TRUST 2017-A as agreed. Defendant made a last payment on the account July XX, 2018. Defendant defaulted on the obligation to repay SPRINGLEAF FUNDING TRUST 2017-A pursuant to the Contract. Defendant's account was closed due to nonpayment on February XX, 2019, and at the time the account was closed, an unpaid balance remained owed. Defendant's default constitutes a breach of the Contract.
  • On or about April XX, 2019, SPRINGLEAF FUNDING TRUST 2017-A assigned Defendant's credit account to Plaintiff, and Plaintiff is the current holder of Defendant's account¬†and the proper party to bring this lawsuit.
  • After allowing for all just and lawful offsets, credits, and payments on the credit account, the total balance due to Plaintiff by Defendant on the account is $1085.51 plus interest.
  • The Plaintiff has made demand upon the defendant for payment of the amount due and payable in full. The Defendant has failed, neglected, and refused to pay the amount requested.
  • Plaintiff has performed all conditions precedent to the filing of this action or all such conditions precedent have been performed or have occurred.
  • Plaintiff seeks damages on its liquidated claim in the amount of at least $1085.51 plus interest, which is within the jurisdictional limits of this court ($10,000 or less).

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. There was zero evidence attached to the summons.

18.  How did you find out about this site? Google search.

Share this post


Link to post
Share on other sites
19 hours ago, ReclaimingMyTime said:

Due to my financial circumstance, I plan on challenging their allegations in court on my own with hopes that the Magistrate will dismiss the case with prejudice. I haven't been to Justice Court for a lawsuit before, so I'm unsure how the interaction will play out. 

You will lose.  Even if your financial situation were that you only collect SSI or disability which cannot be garnished the court can still grant a judgment in their favor.  While unfortunate, financial distress is not a defense to not paying a loan that you signed a contract for.

19 hours ago, ReclaimingMyTime said:

Can I rely on them not having enough proof of account ownership to win the case?

No.  OneMain does everything digitally and can provide them with all the documents you signed to attain the loan, application, payments, statements, as well as the proof of deposit to your bank account of the funds loaned.

19 hours ago, ReclaimingMyTime said:

Let's play Devil's Advocate. If the Plaintiff did buy the debt and now "owns" the account, what would they need to provide in order for the Magistrate to rule in favor of the Plaintiff (JDB)?

An affidavit showing transfer of the account from OneMain to Springleaf i.e. assignment.  Copy(s) of the loan documents, possibly your application, and last two or three statements up to default.

19 hours ago, ReclaimingMyTime said:

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

Justice Court does not require evidence be attached to the complaint when it is filed.  If you want arbitration you cannot engage in discovery or you waive your right to arbitration by participating in the discovery process.  If the MTC is denied then you get permission from the court to do discovery before there is a trial.

19 hours ago, ReclaimingMyTime said:

Given my situation - wanting to fight this in court - what is the best advice to win the case?

Arbitration.  Velocity/Springleaf has backed down every time. File the general answer.  Invoke arbitration as a defense.  If/when they claim it doesn't apply make them produce the loan documents showing it isn't an option.  

 

  • Thanks 1

Share this post


Link to post
Share on other sites
2 hours ago, Clydesmom said:

You will lose.  Even if your financial situation were that you only collect SSI or disability which cannot be garnished the court can still grant a judgment in their favor.  While unfortunate, financial distress is not a defense to not paying a loan that you signed a contract for.

No.  OneMain does everything digitally and can provide them with all the documents you signed to attain the loan, application, payments, statements, as well as the proof of deposit to your bank account of the funds loaned.

An affidavit showing transfer of the account from OneMain to Springleaf i.e. assignment.  Copy(s) of the loan documents, possibly your application, and last two or three statements up to default.

Justice Court does not require evidence be attached to the complaint when it is filed.  If you want arbitration you cannot engage in discovery or you waive your right to arbitration by participating in the discovery process.  If the MTC is denied then you get permission from the court to do discovery before there is a trial.

Arbitration.  Velocity/Springleaf has backed down every time. File the general answer.  Invoke arbitration as a defense.  If/when they claim it doesn't apply make them produce the loan documents showing it isn't an option.  

 

You're suggesting that, despite not having the contract, I should file a MTC arbitration at the same time as my answer? Thank you so much for your help!ūü§©¬† I appreciate the honesty and guidance.

I spent all of yesterday typing my answer replying to each allegation by the corresponding paragraph numbers because I read some other threads from people who won against a JDB this way. It seems in this particular lawsuit the best thing to do is type in a general denial and invoke arbitration under defenses. I'll do more research regarding that in the arbitration threads.

Share this post


Link to post
Share on other sites
2 hours ago, ReclaimMyTime said:

You're suggesting that, despite not having the contract, I should file a MTC arbitration at the same time as my answer?

That is exactly what I am suggesting.

Share this post


Link to post
Share on other sites

@Clydesmom Alright. I went to the OneMain website to retrieve the contract, but it seems the account doesn't exist anymore. I no longer have access to the contract. Even the link they sent via email leads to "page not found." I'll do what you suggested and pray the MTC is granted.

  • Like 1

Share this post


Link to post
Share on other sites

Does anyone know what to write as my Affirmative Defense to invoke arbitration? I don't have a copy of the consumer loan agreement, so the wording provided by @fisthardcheese¬†would have to change significantly.¬†‚ÄúLack of Subject Matter Jurisdiction¬†‚Äď The underlying contract contains a private arbitration clause which the Defendant has elected to exercise. Therefore, This Court does not have jurisdiction to hear this matter‚ÄĚ.

I cannot state those words verbatim because I don't have a contract to submit with the answer. I wrote the following as my defense instead: 

"Lack of Subject Matter Jurisdiction. The Defendant has elected arbitration."

I can imagine the Judge's face when he or she sees my defense without an attached document to prove my defense. Furthermore, I foresee the Judge will deny my MTC. Relying on the Plaintiff's lawyer to produce the contract on my behalf seems like I'm shooting myself in the foot, no? 

I only have 12/14 days remaining to file my answer. I'll keep this post updated as I go through this lawsuit. Any tips would help!

Share this post


Link to post
Share on other sites

@BackFromTheDebt¬†From what I've seen on the CFPB website, they¬†have a database of credit card agreements, not personal/consumer loan agreements. What a bummer!¬†The account in the lawsuit¬†is regarding a breach of contract i.e.¬†a 2016¬†OneMain Financial Loan Agreement.¬†ūüė¨¬† If I could just get my hands on that, I'd be confident with filing a¬†MTC arbitration.¬†

Share this post


Link to post
Share on other sites
2 hours ago, BackFromTheDebt said:

I hope this isn‚Äôt a stupid question‚ÄĒ is the agreement on the CFPB web site?

For loans?  No.

7 hours ago, ReclaimMyTime said:

I cannot state those words verbatim because I don't have a contract to submit with the answer. I wrote the following as my defense instead: 

Use the first statement.  It is their job to produce the contract not yours.  I had a loan with OneMain and they all have arbitration.

7 hours ago, ReclaimMyTime said:

"Lack of Subject Matter Jurisdiction. The Defendant has elected arbitration."

DO NOT use this. The Justice Courts in TX are getting in on the mediation game as a money maker and docket clearing method but calling it arbitration.  Using this verbiage will land you in their version of mediation at a HUGE expense and you will settle nothing but lose the money.

7 hours ago, ReclaimMyTime said:

I can imagine the Judge's face when he or she sees my defense without an attached document to prove my defense.

If it gets that far.  The goal is that RSIEH dismisses and Velocity walks away.  There is a good chance they do that after being served with a copy of your motion.  They do have arbitration with AAA in their contracts.  The problem is they also have a small claims exemption.  Here is case law from another state outlining it:  https://www.natlawreview.com/article/watch-out-exclusions-to-arbitration

If you want to use the arbitration option you have to word this effectively without out right lying.   Otherwise you need to be prepared to defend the suit.  The worst that happens is the motion is denied and you have to defend it anyway.

Have you tried searching email archives from when you took out the loan to see if you still have the email with the contract?

  • Like 1

Share this post


Link to post
Share on other sites

@Clydesmom I have the email OneMain sent me in 2016, but the loan agreement link leads to one of One Main's pages labeled "page not found." I'm sure this means they've wiped all the data from my previously existing account. 

 

You're saying I should put:¬†‚ÄúLack of Subject Matter Jurisdiction¬†‚Äď The underlying contract contains a private arbitration clause which the Defendant has elected to exercise. Therefore, This Court does not have jurisdiction to hear this matter‚ÄĚ as my defense?

I've read that Justice Court is akin to small claims court here in Texas, so if that contract has a small claims exemption, I don't even want to imagine how bad it'll go for me.

 

Share this post


Link to post
Share on other sites

I will say this, consider what is the worse that will happen and plan for that. If they can only levy bank accounts, then close your bank accounts and go to a cash basis until you can settle this/

Share this post


Link to post
Share on other sites
1 hour ago, ReclaimMyTime said:

¬†‚ÄúLack of Subject Matter Jurisdiction¬†‚Äď The underlying contract contains a private arbitration clause which the Defendant has elected to exercise. Therefore, This Court does not have jurisdiction to hear this matter‚ÄĚ as my defense?

Yes.

1 hour ago, ReclaimMyTime said:

I've read that Justice Court is akin to small claims court here in Texas, so if that contract has a small claims exemption, I don't even want to imagine how bad it'll go for me.

You are emotionally personalizing this.  The judge simply rules against the motion and you move on.  That is why I ALWAYS advocate that you have a plan in case that happens so that you are not blindsided and caught off guard.  If you are prepared for that instance and never need it all the better.  

1 hour ago, WhoCares1000 said:

If they can only levy bank accounts, then close your bank accounts and go to a cash basis until you can settle this/

Which should be your plan if you lose the case.  RSIEH is known for folding when challenged.  They much prefer the low hanging fruit of a default judgment.  

Share this post


Link to post
Share on other sites

I will add, look at your credit reports. See if there is anything you can counterclaim such as misrepresentations of the debt, incorrect or inaccurate reporting. You won't want to use that just yet in court if there are any. You would want to wait to see what happens with the motion to compel arbitration brings. I looked at mine relating to a debt claim from an original creditor and it is RIDDLED with inaccuracies and such.

  • Like 1

Share this post


Link to post
Share on other sites
3 hours ago, alwayswinning36 said:

I will add, look at your credit reports. See if there is anything you can counterclaim such as misrepresentations of the debt, incorrect or inaccurate reporting.

Credit reports are hearsay and inadmissible as evidence.  

Share this post


Link to post
Share on other sites
1 hour ago, Clydesmom said:

Credit reports are hearsay and inadmissible as evidence.  

And what law school did you go to? Credit reports are hearsay? Thats why there's laws that govern the reporting. Riiiiiiight. 

 

I have taken and will continue to take attorney advice over yours. Sorry. But your posts only show you should stick to being a mom of someone named Clyde. You don't know how contract law works. And as I said, I never received anything regarding changes to CC agreement that affected my rights. And they, the debt collector won't prove it was ever sent. So, move along now. Brush up on law or contact an attorney. 

Share this post


Link to post
Share on other sites
2 minutes ago, alwayswinning36 said:

She's an idiot 

Let's take a breather and not stoop to berating others. We are better than that. I appreciate your advice about checking my credit report -- I recently did so on Experian. Also, I found this on another thread which shows you two are in the ballpark in regard to whether or not CR's are hearsay. 

400878949_AreCRsHearsay.thumb.png.cc5660aec97058b1e8ccd10a54b97f48.png

Share this post


Link to post
Share on other sites
7 minutes ago, ReclaimMyTime said:

Let's take a breather and not stoop to berating others. We are better than that. I appreciate your advice about checking my credit report -- I recently did so on Experian. Also, I found this on another thread which shows you two are in the ballpark in regard to whether or not CR's are hearsay. 

400878949_AreCRsHearsay.thumb.png.cc5660aec97058b1e8ccd10a54b97f48.png

Well I can appreciate your statement. However, this person seems to think she knows all of law. She simply does not. I bet she hasn't ever even conferred with any attorney about anything relating to a credit report, or the accuracy of one. § 1681e(b) does not exist for no reason. That is a law that specifically requires accuracy to information reported/shared. Further, any misrepresentation of a debt can be proven by the credit report. She probably relies on credit karma for her reports, and that would most likely be laughed at by anybody. Everybody knows you don't rely on credit karma to get your information about your credit. There is also the deceptive trade practices act, fair debt collection practices act, and several other statutes that regard issues with debt collection tactics, such as putting things on your credit report that are inaccurate or down right false. Fair credit reporting act isn't made for something that is deemed as "hearsay".

Share this post


Link to post
Share on other sites
1 hour ago, alwayswinning36 said:

She's an idiot 

This says more about your lack of character and intelligence than it does mine.

52 minutes ago, alwayswinning36 said:

I bet she hasn't ever even conferred with any attorney about anything relating to a credit report, or the accuracy of one. § 1681e(b) does not exist for no reason.

Once again you are wrong and lose the bet.  How much did you wager?

52 minutes ago, alwayswinning36 said:

Further, any misrepresentation of a debt can be proven by the credit report.

NOT in court.  You didn't produce the document therefore you cannot attest to its accuracy, how it was created or maintained that makes it HEAR SAY in a debt collection case.  Go ahead try and get it past Judge Hubner.  She will shoot you down in a heart beat.

52 minutes ago, alwayswinning36 said:

Fair credit reporting act isn't made for something that is deemed as "hearsay".

The FCRA governs HOW information is reported IN the bureaus not whether it is admissible in court.  

Best of luck to the Plaintiff in your case.  You deserve the judgment on your arrogant attitude alone.  

Share this post


Link to post
Share on other sites

@Clydesmom I'm at a standstill writing my answer. At the bottom where I write a request for the Court, what should I write since I am invoking private arbitration?

Here's a sample of what I brainstormed, but not sure if the language is applicable.

"Defendant prays that this Court grants Motion to Compel Arbitration or dismiss the Plaintiff’s complaint with prejudice."

This is the only thing I need to finish on the answer before I print it out. 

Share this post


Link to post
Share on other sites
21 hours ago, Clydesmom said:

This says more about your lack of character and intelligence than it does mine.

Once again you are wrong and lose the bet.  How much did you wager?

NOT in court.  You didn't produce the document therefore you cannot attest to its accuracy, how it was created or maintained that makes it HEAR SAY in a debt collection case.  Go ahead try and get it past Judge Hubner.  She will shoot you down in a heart beat.

The FCRA governs HOW information is reported IN the bureaus not whether it is admissible in court.  

Best of luck to the Plaintiff in your case.  You deserve the judgment on your arrogant attitude alone.  

Haha they nonsuited while they still had coin in their clients pockets tho. Idiot. 

Share this post


Link to post
Share on other sites
16 hours ago, ReclaimMyTime said:

@Clydesmom I'm at a standstill writing my answer. At the bottom where I write a request for the Court, what should I write since I am invoking private arbitration?

Here's a sample of what I brainstormed, but not sure if the language is applicable.

"Defendant prays that this Court grants Motion to Compel Arbitration or dismiss the Plaintiff’s complaint with prejudice."

This is the only thing I need to finish on the answer before I print it out. 

You will want to cite specifics from the arbitration agreement itself, if you're typing it up on your own. If you're using a standard answer form just attach a copy of the arbitration agreement, or entire agreement including the arbitration agreement. Either way you want to attach the arbitration at the very least. I would remove the dismiss with prejudice part for now. Let the MTC stand on its own and see how its ruled on. Especially if you have absolutely nothing to convey why it should be dismissed as of yet. 

Share this post


Link to post
Share on other sites
21 hours ago, Clydesmom said:

This says more about your lack of character and intelligence than it does mine.

Once again you are wrong and lose the bet.  How much did you wager?

NOT in court.  You didn't produce the document therefore you cannot attest to its accuracy, how it was created or maintained that makes it HEAR SAY in a debt collection case.  Go ahead try and get it past Judge Hubner.  She will shoot you down in a heart beat.

The FCRA governs HOW information is reported IN the bureaus not whether it is admissible in court.  

Best of luck to the Plaintiff in your case.  You deserve the judgment on your arrogant attitude alone.  

I'm not gonna argue with someone who relies on the opinion of some judge whom she's probably never tried before, suing for an FCRA violation. I dont know who the judge is you named but have no reason to try anything with that judge. Apparently you don't know jurisdiction or venue either. You should probably stop giving advice honestly. Youre making yourself look a fool.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this