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Sued by Velocity LLC using Rausch Sturm!


Noble
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I have been served papers notifying me that I’m  being sued by Velocity Investments LLC using Rausch Sturm. I haven’t responded yet but plan on it but just wanted to know if I respond will it give them the ability to levy my bank account or am I afforded a trial before they can levy my account? I live in Texas btw. Iam the only source of income in y house and head of household. Can I contact the plaintiffs attorney and try to settle without them levying my account? Any help is gratefully appreciated!

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12 minutes ago, Noble said:

I have been served papers notifying me that I’m  being sued by Velocity Investments LLC using Rausch Sturm. I haven’t responded yet but plan on it but just wanted to know if I respond will it give them the ability to levy my bank account or am I afforded a trial before they can levy my account? I live in Texas btw. Iam the only source of income in y house and head of household. Can I contact the plaintiffs attorney and try to settle without them levying my account? Any help is gratefully appreciated!

It would help us to better help you if you would copy and answer the questions in the following thread.  Thank you.

https://www.creditinfocenter.com/community/topic/242744-qs-to-answer-when-posting-in-this-forum-please-read/

 

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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.)

Rausch Sturm LLP

3. How much are you being sued for?

6,109.63 interest and court costs

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

WEBBANK

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

Served papers 

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?

None 

9. What state and county do you live in?

Texas / Johnson County

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

January 2020

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

May 2018

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

Unsure

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).

Also unsure I would guess motions filed?

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

No

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

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

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.

Just the last 4 numbers from account with the original WEBBANK account. I’m not trying to not pay any of the debt but would like to settle but it’s almost impossible to find out who to contact. I lost my job of over 10 years unexpectedly back in late 2019 which is when I stopped being able to make the payments. But also have never talked to anyone from Velocity so this hit me out of nowhere. 

18.  How did you find out about this site?

Duck Duck Go

18. Read these two links:

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1 hour ago, Noble said:

I haven’t responded yet but plan on it but just wanted to know if I respond will it give them the ability to levy my bank account or am I afforded a trial before they can levy my account?

If you don't respond they can get a default judgement. At minimum file a general denial before the 14 days are up. They require a judgment before they can levy your bank account and a bench trial or summary judgement has to be awarded before they can do that.  

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1 hour ago, Noble said:

Also, would it be wise to contact the plaintiffs attorney to try and reach a settlement if I don’t want this to go to trial?

Courts actually prefer for parties to agree to settlements out of court, so yes.  You can contact the plaintiff’s attorney.

However, prepare what you will say before you call.  Also, if it were me, I would want to be able to offer a one-time lump sum payment to settle the debt in exchange for a dismissal of the lawsuit.  If you were to offer to make payments, the attorney might want you to sign a stipulated judgment. That means if you miss a payment, they could get a court judgment for the full amount of the debt.

Any agreement should be detailed and in writing.

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To answer your first question, if you are sued and you properly file an answer denying the debt, you do have a right to a trial and to defend yourself before the creditor can be issued a judgement and can levy you bank accounts. Many creditors try to get a summary judgement by claiming that there are no issues in dispute but you can defeat that by simply showing the judge that there is an issue of dispute that requires the judge to make a decision.

So yes, at a minimum, you should file a general denial with 14 days of being served, if just to preserve your rights. You can then contact the opposing attorney to discuss settlement options. In fact, the court encourage settlement discussions and nothing you say in settlement discussions can be used against you in court.

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20 hours ago, BV80 said:

Calling @Clydesmom or @texasrocker

They cannot "levy your bank account" without being granted a judgment by the court.

Answer the lawsuit with a general denial.  This is the wimpiest and laziest law firm in Texas and they don't like to do anything beyond collecting default judgments from the 95% of defendants who do not respond at all.

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  • 1 month later...

Ok so I agreed to a settlement payment plan with them and have already made the first payment. Yesterday I get a letter in the mail saying I have 14 days to agree to the payment plan but they have thrown in interest and court cost which is NOT what I agreed to. Also it seems to indicate that if I sign the agreement letter they sent yesterday than I’m agreeing to having a judgment placed on me. It says that if I don’t agree to the agreement ( which is not what I agreed to) they will continue with litigation... The litigation has not been dropped yet obviously but what I agreed to with them was a payment plan. Was just trying to not have a judgment placed on me. I can’t afford an attorney right now. 

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Also in the letter I received yesterday it says if I don’t sign and return in 14 days then they will take that as I’m not agreeing to the payment plan...Doesn’t make any sense to me. I received a letter from them after the first payment was paid detailing the payment plan that we originally agreed to. Should I just not answer this letter and keep paying them on the plan I agreed to or just go to court with it all?

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