Dan001

Arbitration with Velocity Inc LLc

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Sued by Velocity Investment for a debt (30k) from Lending club. Business got messed up and all the money gone. I responded (denied) and filled a motion for arbitration, the court sent a Scheduling conference email to me for this Friday. Pls, I need help on how to go about this.

1) Should I call Velocity for a settlement, is it late?  2) What are my chances and best defense points upon arbitration if it is granted?  3) Any way out of this with my head high? 4) If I can negotiate, any idea on how velocity investment llc  goes in terms of how much percentage I am likely to get?

Thanks so much for all that you guys do. 

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17 hours ago, Dan001 said:

1) Should I call Velocity for a settlement, is it late? 

It is never too late to settle.

17 hours ago, Dan001 said:

2) What are my chances and best defense points upon arbitration if it is granted? 

The goal of a successful motion to compel arbitration is not to actually arbitrate but to get them to back down and drop the entire collection/lawsuit because arbitration is too expensive.  The problem you have is $30k is a lot of money worth the expense of arbitration and a bad case in court is equally as bad in arbitration.

17 hours ago, Dan001 said:

3) Any way out of this with my head high?

Bankruptcy? Did the company simply close or can you file a corporate BK and wipe this out?  

17 hours ago, Dan001 said:

4) If I can negotiate, any idea on how velocity investment llc  goes in terms of how much percentage I am likely to get?

Never negotiated with them but since the debt is so large and they have already sued your leverage is limited.  Did you sign a personal guarantee for this loan?

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I signed a personal guarantee for the loan. the just filled for an abate motion; I want to negotiate with them because they gave me 60 days to file for arbitration or we go back to court

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5 hours ago, Dan001 said:

You guys are awesome. It was a business gone really bad but survival is a habit

If this was a business loan, wouldn't arbitration be conducted using the business rules and fees rather than the consumer rules? @LaneBlane had a similar situation with a series of business loans with a personal guarantee.  

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Because this is a commercial loan, you won't have the luxury of being limited to paying a reasonable filing fee.  If I remember correctly, I paid $600 to JAMS in my commercial case.  I would have been expected to pay half the cost of everything moving forward (arbitrator, hearing, etc.)

What does the arbitration clause of your agreement say with regard to payment for arbitration?  My agreement said the other side would advance or reimburse all fees/costs related to arbitration.  The JDB in my case refused to do either.  Because they never submitted payment for the arbitrator's retainer fee, the case was administratively closed by JAMS.  It took another year or so for the judge to dismiss the court case (it was stayed pending arbitration) for lack of prosecution.

On a personal note, I've owned my own small business for nearly 20 years.  One of the biggest mistakes I ever made was taking out a business loan, especially with a higher-interest, online-based lender.  I found myself taking out a loan to pay the other loan, something the lender gladly did and even encouraged.  It's something I will NEVER do again.  It choked the cash flow for my business and became a huge financial and emotional burden.

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2 hours ago, Brotherskeeper said:

If this was a business loan, wouldn't arbitration be conducted using the business rules and fees rather than the consumer rules?

Not only this but the FDCPA does not apply to business debts either.  In business arbitration the entire costs can be awarded back to the winning side as well.  Settlement is likely the best option if BK is not possible.

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The worst mistake of my life was taking a personal loan for business. This will hurt for a very long time, i will see if I can raise some money and make an offer for settlement in the next few weeks. 

Pls, DO I CALL OR EMAIL THEM FOR THE OFFER?

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59 minutes ago, Dan001 said:

The worst mistake of my life was taking a personal loan for business. This will hurt for a very long time, i will see if I can raise some money and make an offer for settlement in the next few weeks. 

Pls, DO I CALL OR EMAIL THEM FOR THE OFFER?

(IANAL.) I vote for email. It takes pressure off to think and speak in the moment and leaves a paper trail. If negotiating with lawyers is your strong suit, then call. 

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There are a few old threads on this site pertaining to Lending Club.  I'd recommend doing a search using the search tool to see what other people's experience has been  You can also search the internet for information on settling with Velocity.

Has Velocity provided you with a copy of the loan agreement and any documents that show they purchased the debt?  If so, is the agreement signed or does it show an electronic signature exists?  Also describe any purchase/sale documents.

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Velocity provided me with purchase documents between them and lending club, they are physically signed. I signed mine electronically with lending club. If I see a physically signed signature on mine, it means they forged my signature. Am going going crazy. I will use the next few weeks and see if I can make them an offer before filing for arb with AAA, ok?

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