Should I seek arbitration?

[eweka10]

Prosper sent letter in 2017 stating charge off to Velocity Investmena. I started to receive collection letters from various law firms. The last firm is Malen & Associates in 2019. Never with a settlement. I always request validation. They sent charge off letter, bill of sale, sale certificate with last 4 digits of "my account #". Everything is redacted. I was never served, but received copy via mail from Malen. I responded to judgement. Now I have a pre trial date for 8/18/21. What happens at pre trial conference? Should I go the arbitration route? Debt $22,206.

[BV80]

59 minutes ago, eweka10 said:

Prosper sent letter in 2017 stating charge off to Velocity Investmena. I started to receive collection letters from various law firms. The last firm is Malen & Associates in 2019. Never with a settlement. I always request validation. They sent charge off letter, bill of sale, sale certificate with last 4 digits of "my account #". Everything is redacted. I was never served, but received copy via mail from Malen. I responded to judgement. Now I have a pre trial date for 8/18/21. What happens at pre trial conference? Should I go the arbitration route? Debt $22,206.

What do you mean that you responded to “judgment”?  What exactly did you receive from Malen?

[eweka10]

My apologies. I received summons, and had to file my answer. I received a copy of summons from Malen, even though they claimed I was served.

[Bulldoger]

answering the following questions in this link will help us help you better. 

 

 

[BV80]

8 hours ago, eweka10 said:

My apologies. I received summons, and had to file my answer. I received a copy of summons from Malen, even though they claimed I was served.

Your court rules will outline proper service.  Service by mail could very well be legal.

You would have to read a copy of your agreement with Prosper to make sure arbitration included in the agreement.

Does the complaint list Velocity as the plaintiff?  Do the allegations state that Velocity owns the account?

Please copy and answer the questions in the link provided by @Bulldoger.

[eweka10]

6 hours ago, BV80 said:

Your court rules will outline proper service.  Service by mail could very well be legal.

You would have to read a copy of your agreement with Prosper to make sure arbitration included in the agreement.

Does the complaint list Velocity as the plaintiff?  Do the allegations state that Velocity owns the account?

Please copy and answer the questions in the link provided by @Bulldoger.

I'm confused.  I answered the questions, and submitted, but don't see it

At the top of my questionnaire, I also indicated that Velocity Investments nor Prosper are listed on any of my credit reports.  What does that mean?

[eweka10]

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.)

Malen & Associates

3. How much are you being sued for?

$22,206

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

Prosper Funding LLC assignee of WEBANK

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

Received summons/complaint copy from law firm

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

Received summons/complaint copy from law firm by regular mail

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

1.    Personal delivery. The papers are handed to the defendant or respondent. This is the easiest way to serve papers. Papers can be handed to the other side anywhere. Papers can’t be served on Sundays. The attempt to serve the papers should not be made on a person's religious observance days. In New York City for many Housing Court cases, papers should be served between 6:00 in the morning and 10:00 at night.

2.    Substituted delivery. Papers are left with someone else to give to the defendant or respondent and copies of the papers are mailed. Read the rules for this kind of service.

3.    Conspicuous delivery. If personal or substituted delivery can’t be done, papers are left in a place where they are likely to be found and copies of the papers are mailed. Read the rules for this kind of service.

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

Sent several replies by priority Mail letters in 2019 to Malen requesting validation

9. What state and county do you live in?

Kings County, NY

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

June 2017

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

February 2016

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

6 years

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).

Pre trial conference hearing 8/18/21

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

I believe so, but no evidence of Velocity or Prosper on any of my credit reports

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').

Yes, before suit

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?

Received summons 10/2020. Answered 10/2020. Received Rescheduling Order/Appearance Notification July 17,2021. Pre Trial conference 8/18/2021 (virtual). Includes information page (asked if I have evidence to submit)

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

No evidence included with summons. Received copy of Bill of sales, Copy of Certificate od Sales, email Prosper sent to me stating account charged off to Velocity Investments, Borrower Promissory note, Borrower registration Agreement, and redacted list of loan accounts (which supposedly shows last 4 digits of my loan account number)

18.  How did you find out about this site?

Google search

[eweka10]

I ran all 3 credit reports. velocity nor Prosper Funding are on any of them.  What does this mean for my case?

[eweka10]

1 minute ago, eweka10 said:

I'm confused.  I answered the questions, and submitted, but don't see it

At the top of my questionnaire, I also indicated that Velocity Investments nor Prosper are listed on any of my credit reports.  What does that mean?

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.)

Malen & Associates

3. How much are you being sued for?

$22,206

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

Prosper Funding LLC assignee of WEBANK

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

Received summons/complaint copy from law firm

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

Received summons/complaint copy from law firm by regular mail

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

1.    Personal delivery. The papers are handed to the defendant or respondent. This is the easiest way to serve papers. Papers can be handed to the other side anywhere. Papers can’t be served on Sundays. The attempt to serve the papers should not be made on a person's religious observance days. In New York City for many Housing Court cases, papers should be served between 6:00 in the morning and 10:00 at night.

2.    Substituted delivery. Papers are left with someone else to give to the defendant or respondent and copies of the papers are mailed. Read the rules for this kind of service.

3.    Conspicuous delivery. If personal or substituted delivery can’t be done, papers are left in a place where they are likely to be found and copies of the papers are mailed. Read the rules for this kind of service.

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

Sent several replies by priority Mail letters in 2019 to Malen requesting validation

9. What state and county do you live in?

Kings County, NY

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

June 2017

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

February 2016

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

6 years

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).

Pre trial conference hearing 8/18/21

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

I believe so, but no evidence of Velocity or Prosper on any of my credit reports

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').

Yes, before suit

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?

Received summons 10/2020. Answered 10/2020. Received Rescheduling Order/Appearance Notification July 17,2021. Pre Trial conference 8/18/2021 (virtual). Includes information page (asked if I have evidence to submit)

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

No evidence included with summons. Received copy of Bill of sales, Copy of Certificate od Sales, email Prosper sent to me stating account charged off to Velocity Investments, Borrower Promissory note, Borrower registration Agreement, and redacted list of loan accounts (which supposedly shows last 4 digits of my loan account number)

18.  How did you find out about this site?

Google search

[eweka10]

2 minutes ago, eweka10 said:

I'm confused.  I answered the questions, and submitted, but don't see it

At the top of my questionnaire, I also indicated that Velocity Investments nor Prosper are listed on any of my credit reports.  What does that mean?

I ran all 3 credit reports, and Velocity nor Prosper Funding (original creditor) is on them.

[eweka10]

17 hours ago, BV80 said:

What do you mean that you responded to “judgment”?  What exactly did you receive from Malen?

 

7 hours ago, BV80 said:

Your court rules will outline proper service.  Service by mail could very well be legal.

You would have to read a copy of your agreement with Prosper to make sure arbitration included in the agreement.

Does the complaint list Velocity as the plaintiff?  Do the allegations state that Velocity owns the account?

Please copy and answer the questions in the link provided by @Bulldoger.

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.)

Malen & Associates

3. How much are you being sued for?

$22,206

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

Prosper Funding LLC assignee of WEBANK

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

Received summons/complaint copy from law firm

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

Received summons/complaint copy from law firm by regular mail

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

1.    Personal delivery. The papers are handed to the defendant or respondent. This is the easiest way to serve papers. Papers can be handed to the other side anywhere. Papers can’t be served on Sundays. The attempt to serve the papers should not be made on a person's religious observance days. In New York City for many Housing Court cases, papers should be served between 6:00 in the morning and 10:00 at night.

2.    Substituted delivery. Papers are left with someone else to give to the defendant or respondent and copies of the papers are mailed. Read the rules for this kind of service.

3.    Conspicuous delivery. If personal or substituted delivery can’t be done, papers are left in a place where they are likely to be found and copies of the papers are mailed. Read the rules for this kind of service.

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

Sent several replies by priority Mail letters in 2019 to Malen requesting validation

9. What state and county do you live in?

Kings County, NY

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

June 2017

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

February 2016

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

6 years

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).

Pre trial conference hearing 8/18/21

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

I believe so, but no evidence of Velocity or Prosper on any of my credit reports

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').

Yes, before suit

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?

Received summons 10/2020. Answered 10/2020. Received Rescheduling Order/Appearance Notification July 17,2021. Pre Trial conference 8/18/2021 (virtual). Includes information page (asked if I have evidence to submit)

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

No evidence included with summons. Received copy of Bill of sales, Copy of Certificate od Sales, email Prosper sent to me stating account charged off to Velocity Investments, Borrower Promissory note, Borrower registration Agreement, and redacted list of loan accounts (which supposedly shows last 4 digits of my loan account number)

18.  How did you find out about this site?

Google search

[eweka10]

14 hours ago, BV80 said:

Your court rules will outline proper service.  Service by mail could very well be legal.

You would have to read a copy of your agreement with Prosper to make sure arbitration included in the agreement.

Does the complaint list Velocity as the plaintiff?  Do the allegations state that Velocity owns the account?

Please copy and answer the questions in the link provided by @Bulldoger.

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.)

 

Malen & Associates

 

3. How much are you being sued for?

 

$22,206

 

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

 

Prosper Funding LLC assignee of WEBANK

 

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

 

Received summons/complaint copy from law firm

 

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

 

Received summons/complaint copy from law firm by regular mail

 

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

 

1. Personal delivery. The papers are handed to the defendant or respondent. This is the easiest way to serve papers. Papers can be handed to the other side anywhere. Papers can’t be served on Sundays. The attempt to serve the papers should not be made on a person's religious observance days. In New York City for many Housing Court cases, papers should be served between 6:00 in the morning and 10:00 at night.

 

2. Substituted delivery. Papers are left with someone else to give to the defendant or respondent and copies of the papers are mailed. Read the rules for this kind of service.

 

3. Conspicuous delivery. If personal or substituted delivery can’t be done, papers are left in a place where they are likely to be found and copies of the papers are mailed. Read the rules for this kind of service.

 

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

 

Sent several replies by priority Mail letters in 2019 to Malen requesting validation

 

9. What state and county do you live in?

 

Kings County, NY

 

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

 

June 2017

 

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

 

February 2016

 

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

 

6 years

 

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).

 

Pre trial conference hearing 8/18/21

 

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

 

I believe so, but no evidence of Velocity or Prosper on any of my credit reports

 

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').

 

Yes, before suit

 

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?

 

Received summons 10/2020. Answered 10/2020. Received Rescheduling Order/Appearance Notification July 17,2021. Pre Trial conference 8/18/2021 (virtual). Includes information page (asked if I have evidence to submit)

 

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

 

No evidence included with summons. Received copy of Bill of sales, Copy of Certificate od Sales, email Prosper sent to me stating account charged off to Velocity Investments, Borrower Promissory note, Borrower registration Agreement, and redacted list of loan accounts (which supposedly shows last 4 digits of my loan account number)

 

18. How did you find out about this site?

 

Google search

[eweka10]

18 hours ago, Bulldoger said:

answering the following questions in this link will help us help you better. 

 

 

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.)

Malen & Associates

3. How much are you being sued for?

$22,206

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

Prosper Funding LLC assignee of WEBANK

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

Received summons/complaint copy from law firm

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

Received summons/complaint copy from law firm by regular mail

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

1.    Personal delivery. The papers are handed to the defendant or respondent. This is the easiest way to serve papers. Papers can be handed to the other side anywhere. Papers can’t be served on Sundays. The attempt to serve the papers should not be made on a person's religious observance days. In New York City for many Housing Court cases, papers should be served between 6:00 in the morning and 10:00 at night.

2.    Substituted delivery. Papers are left with someone else to give to the defendant or respondent and copies of the papers are mailed. Read the rules for this kind of service.

3.    Conspicuous delivery. If personal or substituted delivery can’t be done, papers are left in a place where they are likely to be found and copies of the papers are mailed. Read the rules for this kind of service.

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

Sent several replies by priority Mail letters in 2019 to Malen requesting validation

9. What state and county do you live in?

Kings County, NY

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

June 2017

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

February 2016

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

6 years

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).

Pre trial conference hearing 8/18/21

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

I believe so, but no evidence of Velocity or Prosper on any of my credit reports

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').

Yes, before suit

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?

Received summons 10/2020. Answered 10/2020. Received Rescheduling Order/Appearance Notification July 17,2021. Pre Trial conference 8/18/2021 (virtual). Includes information page (asked if I have evidence to submit)

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

No evidence included with summons. Received copy of Bill of sales, Copy of Certificate od Sales, email Prosper sent to me stating account charged off to Velocity Investments, Borrower Promissory note, Borrower registration Agreement, and redacted list of loan accounts (which supposedly shows last 4 digits of my loan account number)

18.  How did you find out about this site?

Google search

[Bulldoger]

This not being on credit reports means nothing other than they are not currently reporting it.  Borrower Promissory note does this contain an arbitration clause? Does it have your signature?

 

3. How much are you being sued for?

$22,206

For this amount I think a call to a local consumer attorney is a smart move see what they think are your chance of winning lawsuit or if it's better to settle if possible.  

luckly in New York State, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30% of minimum wage. If your disposable income is less than 30 times minimum wage, it can't be garnished at all. (N.Y.C.L.P.R. § 5231).  That's less than some states where it's 25% of gross.  

 

 New York State law known as the “Exempt Income Protection Act” (or simply the “EIPA”) limits the ability of a creditor to restrain, or “freeze,” bank accounts.

Under the EIPA, if your bank determines that you possess $1,950 or less of non-exempt income in any account, that account cannot be frozen.  “Exempt” income includes any of the following:

Exempt funds include the following:

– Supplemental Security Income (SSI),
– Social Security retirement,
– Social Security Disability (SSD),
– Public assistance (TANF),
– Income earned while receiving SSI or public assistance,
– Disability benefits,
– Workers’ compensation benefits,
– Veterans’ benefits,
– Black lung benefits,
– Spousal support, maintenance (alimony), or child support,
– Railroad retirement, and
– Unemployment benefits

If no exempt funds can be identified in the bank account, any amount over the $1,950 that is present in your account can be frozen.

If your bank determines that some of the money in your account contains exempt funds, then the cut-off amount is raised to $2,660.  This means that if you have less than $2,660 of exempt and non-exempt income in your account, then there will be no freeze whatsoever, but anything above the $2,660 can be frozen.

[eweka10]

31 minutes ago, Bulldoger said:

This not being on credit reports means nothing other than they are not currently reporting it.  Borrower Promissory note does this contain an arbitration clause? Does it have your signature?

 

3. How much are you being sued for?

$22,206

For this amount I think a call to a local consumer attorney is a smart move see what they think are your chance of winning lawsuit or if it's better to settle if possible.  

luckly in New York State, a creditor can garnish the lesser of 10% of your gross wages or 25% of your disposable income to the extent that this amount exceeds 30% of minimum wage. If your disposable income is less than 30 times minimum wage, it can't be garnished at all. (N.Y.C.L.P.R. § 5231).  That's less than some states where it's 25% of gross.  

 

 New York State law known as the “Exempt Income Protection Act” (or simply the “EIPA”) limits the ability of a creditor to restrain, or “freeze,” bank accounts.

Under the EIPA, if your bank determines that you possess $1,950 or less of non-exempt income in any account, that account cannot be frozen.  “Exempt” income includes any of the following:

Exempt funds include the following:

– Supplemental Security Income (SSI),
– Social Security retirement,
– Social Security Disability (SSD),
– Public assistance (TANF),
– Income earned while receiving SSI or public assistance,
– Disability benefits,
– Workers’ compensation benefits,
– Veterans’ benefits,
– Black lung benefits,
– Spousal support, maintenance (alimony), or child support,
– Railroad retirement, and
– Unemployment benefits

If no exempt funds can be identified in the bank account, any amount over the $1,950 that is present in your account can be frozen.

If your bank determines that some of the money in your account contains exempt funds, then the cut-off amount is raised to $2,660.  This means that if you have less than $2,660 of exempt and non-exempt income in your account, then there will be no freeze whatsoever, but anything above the $2,660 can be frozen.

Promissory note has electronic signature. Yes, Prosper has arbitration clause.

I will look into a consumer attorney.

Thanks

PromissoryNoteSample_June_2018.pdf.PDF