Dan001

Arbitration with Velocity Inc LLc

Recommended Posts

 

I was sued by Velocity Inv and I opted for arbitration, right now, I just filled with AAA; I noticed that the law suit letter has a different (lower)  amount than what is in the bill of sales that they sent to me, meanung that they are suing me for less and a different amount. I want to use this difference in the amounts in their BOS and the amount that they are suing for as a defense in arbitration. 

under these rules: pls comment

 

 Texas Finance Code

Sec. 392.304. FRAUDULENT, DECEPTIVE, OR MISLEADING REPRESENTATIONS. (a) Except as otherwise provided by this section, in debt collection or obtaining information concerning a consumer, a debt collector may not use a fraudulent, deceptive, or misleading representation that employs the following practices:

 

FDCPA: sections 1692e and 1692f. SAppx19 (Compl.) ¶ 53. Section 1692e makes it unlawful for a debt collector to “use any false, deceptive, or misleading representation or means in connection with the collection of any debt,” including by making a “false representation of … the character, amount, or legal status of any debt” or by using “any false representation or deceptive means to collect or attempt to collect any debt.” 15 U.S.C. §§ 1692e, 1692e(2)(A), 1692e(10). Section 1692f similarly makes it unlawful for a debt Case: 20-1955 Document: 36 Page: 9 Date Filed: 10/15/2020 3 collector to “use unfair or unconscionable means to collect or attempt to collect any debt,” including by “collect[ing] ... any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.” Id. §§ 1692f, 1692f(1). Additionally, section 1692g generally requires a debt collector to send the consumer a written notice within five days after the collector’s initial communication with the consumer about the debt. Id. § 1692g(a). Among other things, this notice must disclose “the amount of the debt” and alert the consumer to his right to dispute the debt. Id. This validation notice requirement was designed to ‘‘eliminate the recurring problem of debt collectors dunning the wrong person or attempting to collect debts which the consumer has already paid.’’ S. Rep. No. 95-382, at 4 (1977), reprinted in 1977 U.S.C.C.A.N. 1695, 1699.

Link to post
Share on other sites
1 hour ago, Dan001 said:

I noticed that the law suit letter has a different (lower)  amount than what is in the bill of sales that they sent to me, meanung that they are suing me for less and a different amount.

They are not required to sue you for the full amount and it isn't deceptive to sue for less than what they are legally entitled to ask for.  It would be deceptive if they artificially inflated the amount for the suit.  It isn't uncommon to sue for less. Typically that is to keep the suit in a lower level court at less expense for litigation.

1 hour ago, Dan001 said:

I want to use this difference in the amounts in their BOS and the amount that they are suing for as a defense in arbitration. 

The goal isn't to actually arbitrate it is to get them to back down and drop it.  A bad case in court is equally bad in arbitration.

Link to post
Share on other sites

@Clydesmom

Please, I need some clarifications on what you just stated above. Are you saying that the BOL that they presented as evidence that you are owing them will be a different amount from what they are suing you for?. Any prior case that I can look at that has someone been sued for less when the other documents say otherwise? pls, what is the difference when they sue for less and when they inflated it in terms of the above FDCPA rule?

Thanks 

Link to post
Share on other sites
5 hours ago, Dan001 said:

Are you saying that the BOL that they presented as evidence that you are owing them will be a different amount from what they are suing you for?

I am saying it CAN be.  Some states allow for pre-judgment interest.  That would change the amount being sued for.  Some states have limits on how much can be sued for in small claims. The Plaintiff has to choose whether to sue for less than the full debt or to go to a higher court.

There are valid legal reasons that Plaintiffs sue for less than what they are owed that do not violate the FDCPA in debt collection cases.

5 hours ago, Dan001 said:

Any prior case that I can look at that has someone been sued for less when the other documents say otherwise?

That is an impossible search criteria because the amount sought at the time of filing is less than the paperwork.  I suggest you call a consumer attorney and float that question past them.

5 hours ago, Dan001 said:

pls, what is the difference when they sue for less and when they inflated it in terms of the above FDCPA rule?

This is a hypothetical scenario that explains it:  Dan defaults on a credit card and the final amount owed at charge off is $7388.  The small claims court limit in the state Dan lives in is $5000 and it only costs $75 to file there.  District Court in Dan's state allows any amount but the cost to file is $500.  The paperwork requirements are also more time consuming in District Court.  The Plaintiff opts to sue for $5000 in small claims court for the lower expense and easier trial preparation if needed.  $5000 is a bit less than what they are owed but the time and cost savings are worth it since they probably have a dozen other cases in the small claims court to be heard that day that balance it out in time consumption.

In the same debt scenario of Dan owing $7388 but this time the Plaintiff sues claiming Dan owes $9547 due to 25%  interest they tacked on that is NOT in the terms of service or card agreement.  THIS would be an FDCPA violation for attempting to deceive Dan and the court as to the true amount of the debt.  

NO Plaintiff is required legally to sue for the entire amount.  Suing for less benefits the Defendant therefore it is not prejudicial to do so.

 

Link to post
Share on other sites

You have not given any instances where it happened, no prior history, no case that you know of? If fdcpa categorically stated that it only applies when the amount is inflated, I would have bought into this but you haven’t provided any instances.  I am in Texas. I will go with this for now and see how it plays out. You can’t provide a doc to me that am owing you and then you are suing me for a different amount, falsehood, that person doesn’t a proof then

Link to post
Share on other sites
8 hours ago, Dan001 said:

You have not given any instances where it happened, no prior history, no case that you know of? If fdcpa categorically stated that it only applies when the amount is inflated, I would have bought into this but you haven’t provided any instances.  I am in Texas. I will go with this for now and see how it plays out. You can’t provide a doc to me that am owing you and then you are suing me for a different amount, falsehood, that person doesn’t a proof then

If you don’t mind, could you please post the docs that show the amount that is more than that for which you are being sued?  Are you referring to collection letters?

 

Link to post
Share on other sites

@BV80

The bill of sale-information about a bunch of junk debts that they bought that has what they refer to as account numbers and debt amount charged off by the original lender. The amount in this bill of sale document that the attorney from velocity sent to me is higher than what is in the law suit letter, the letter that was personally delivered notifying about the law suit. If the BIL has a lower amount amount, I can understand that they might have added any interest which they don't even know how to calculate it presumably. My stance is that if you are suing me and your verification document has a different amount from what you are suing me, how will I reconcile the document with the debt? This is happening in a district court in Texas.

Link to post
Share on other sites
51 minutes ago, Dan001 said:

@BV80

The bill of sale-information about a bunch of junk debts that they bought that has what they refer to as account numbers and debt amount charged off by the original lender. The amount in this bill of sale document that the attorney from velocity sent to me is higher than what is in the law suit letter, the letter that was personally delivered notifying about the law suit. If the BIL has a lower amount amount, I can understand that they might have added any interest which they don't even know how to calculate it presumably. My stance is that if you are suing me and your verification document has a different amount from what you are suing me, how will I reconcile the document with the debt? This is happening in a district court in Texas.

It could be that Velocity chose not to charge the interest and/or fees that had been added bumpy the original creditor.  Did they include the last credit card statement that shows the charge-off amount?  

Link to post
Share on other sites

Even if Velocity chose to remove the interest accrued from the day the debt was charged off till they bought it, which is weeks, the calculation is still very wrong. I am telling you that I have done all the calculations and I do not see how they will arrive at the figure that sued me for unless they made a typographic error which they carried over to the court and to me; an error of one of the numbers in the middle. like 10110 instead of 10410 and that to me is not an error legally; it is a fabricated number because they are not same; what is your take?

Thanks

Link to post
Share on other sites
9 hours ago, Dan001 said:

Even if Velocity chose to remove the interest accrued from the day the debt was charged off till they bought it, which is weeks, the calculation is still very wrong. I am telling you that I have done all the calculations and I do not see how they will arrive at the figure that sued me for unless they made a typographic error which they carried over to the court and to me; an error of one of the numbers in the middle. like 10110 instead of 10410 and that to me is not an error legally; it is a fabricated number because they are not same; what is your take?

Thanks

It would surprise me if Velocity followed through with arbitration.  Anyway, did Velocity sent you collection letters before filing suit?  If so, what amount did they demand? 

Link to post
Share on other sites

They did not send any collection letters. They just sued and I then denied and requested for debt validation, then they sent the bill of sales. They sued last year and withdrew the case and it was dismissed without prejudice; they filled again in July and I opted for arbitration, that was when I noticed this discrepancy. They are requesting for 10k. I just filled for arbitration and sent the papers to the law office too. What is the next step pls? Send an email to them and told them about the discrepancy and request for mutual dismissal or should I wait ?

Thanks

Link to post
Share on other sites
On 10/30/2020 at 8:25 AM, Dan001 said:

They did not send any collection letters. They just sued and I then denied and requested for debt validation, then they sent the bill of sales. They sued last year and withdrew the case and it was dismissed without prejudice; they filled again in July and I opted for arbitration, that was when I noticed this discrepancy. They are requesting for 10k. I just filled for arbitration and sent the papers to the law office too. What is the next step pls? Send an email to them and told them about the discrepancy and request for mutual dismissal or should I wait ?

Thanks

When you say filed for arbitration, what do you mean exactly, filed a motion to compel arbitration? You are handling a case in District Court in Texas without an attorney? Or is "they filed in District Court" a typo?

I am assuming you filed an answer to the suit, filed a MTC arbitration, and sent everything you filed with the court to the plaintiff attorney. Only thing you can do now is wait. In each scenario where I have filed an MTC, the plaintiff contacted me on their own wanting to know "what could be done" to settle and have a pissing match back and forth email fiasco. You can ask for mutual dismissal, but you want to try to get it with prejudice, not without. Otherwise you may go through this over and over again until the SOL has passed and they can't sue you anymore. Just curious, what was it you did that made them dismiss the suit previously when it was filed?

Link to post
Share on other sites

I denied everything and then the case was dismissed as non suited without prejudice. They filled again in July, so I denied and filled a MTC arbitration which they did not object to. I just filled this week and sent all documents to them. It is in a district court. 

I just noticed that the amount in the bill of sales that they sent to me is LESS THAN what they are suing for. I mean suing me for less than and different from what is in the bill of sales. If they are suing me for higher, I will say probably with interest but lower is definitely a mistake-so I look at it. I am waiting to hear from them from next week to see where we go from here 

Hoping to use this on them

Texas Finance Code

Sec. 392.304. FRAUDULENT, DECEPTIVE, OR MISLEADING REPRESENTATIONS. (a) Except as otherwise provided by this section, in debt collection or obtaining information concerning a consumer, a debt collector may not use a fraudulent, deceptive, or misleading representation that employs the following practices:

 

FDCPA: sections 1692e and 1692f. SAppx19 (Compl.) ¶ 53. Section 1692e makes it unlawful for a debt collector to “use any false, deceptive, or misleading representation or means in connection with the collection of any debt,” including by making a “false representation of … the character, amount, or legal status of any debt” or by using “any false representation or deceptive means to collect or attempt to collect any debt.

Link to post
Share on other sites

Update: I received an email from AAA which stated that the business should send $2800. I think it is time for me to send an email asking them for a mutual dismissal of the case and add a deadline same as the one in the email sent by AAA. My other question is this: should I inform them that their documents are misleading , false and deceptive and mention the discrepancies in their documents?? Pls , I need help here.

Thanks

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.