I'm On SSI, In New Jersey, Being Sued By Velocity Investments

[Jack in NJ]

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.)  Ragan and Ragan

3. How much are you being sued for?  About $10,000

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

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

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

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

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? Ocean County, New Jersey

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

11. When did you open the account (looking to establish what card agreement may be applicable)? 2013

12. What is the SOL on the debt?  7 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).  Suit served. I also have received Interrogatories, Notice to produce and Request for Admissions

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?

I sent an answer via Solosuit and it was within the 30 day limit.

Charges: 1. Barclays Bank Delaware allowed the defendant ( Last 3 of SS number) to borrow money, make purchases,obtain cash advances,incur late charges,and/or pre-charge off interest, upon a certain account number (Last 4 of account) in the amount of 10K.

2. The Plaintiff has purchased this monetary obligation under account number (last 4 of account). The chain of title to this claim is a follows: Barclays Bank Delaware, First Bank and Trust, CreditShop Holdings LLC, Velocity Investments LLC. Thus the Plaintiff is the assignee of the original creditor.

3. The Defendant has defaulted in repaying these monies and were thus unjustly enriched.

4. The Plaintiff hereby sues the Defendant for monies not repaid in the amount of 10K plus costs.

I have received Interrogatories, Notice to produce and Request for Admissions.

17. What evidence did they send with the summons? An affidavit? Statements from the OC? Contract? List anything else they attached as exhibits. Nothing

18.  How did you find out about this site? Duck Duck Go

Hi guys, I'm completely overwhelmed.

I'm on SSI as my sole income so money is tight as you can imagine.

I already consulted with an attorney who specializes in debt issues and he wanted $2000 just to negotiate to a lesser amount ($2500-$4500), from a  10K demand.

Ragan and Raga did send a settlement letter but there were no terms.

I don't have the money to settle nor pay the lawyer mentioned above.

What do you suggest I do next?

Thank you for any advice!

[Bulldoger]

SSI is protected from levy from JDB even if they get a judgement as long as it's directly deposited into a bank account.  It best it's and account with only you SSI being deposited into. If you have a spouse they should have their own account.  

That said I don't know NJ laws.  Check to see if you have an arbitration clause in your contract you may still be able to win via Arbitration.  See arbitration post on web site. 

What court are you being sued in. If in NJ small claims see if contract has a small claims restriction. 

For now until you get the information do not respond to  Interrogatories, Notice to produce and Request for Admissions. 

When is the deadline to respond to those request? 

Maybe their is someone familiar with NJ laws that will chime in until then get copy of your credit (loan card) contract or promissory note.  

[shadow99]

Barclay's has an arbitration clause. I had a hard time finding the contract - it's on the consumer site we use under First Bank and Trust.

Mine was also referred to as Mercury and there's something about Creditshop too I think.

This is the link to the site: Credit card agreement database | Consumer Financial Protection Bureau (consumerfinance.gov)

 

[BV80]

17 minutes ago, shadow99 said:

Barclay's has an arbitration clause. I had a hard time finding the contract - it's on the consumer site we use under First Bank and Trust.

Mine was also referred to as Mercury and there's something about Creditshop too I think.

This is the link to the site: Credit card agreement database | Consumer Financial Protection Bureau (consumerfinance.gov)

 

It’s not listed as Barclays Bank on the CFPB database site?

[shadow99]

2 hours ago, BV80 said:

It’s not listed as Barclays Bank on the CFPB database site?

I do see a Barclay's folder as well. That contract also has an arbitration clause that looks about the same - maybe identical - to the one I have from the other folder.

My card was sold several times over the years - it went from Juniper > Mercury > Barclays, or Juniper > Barclays > Mercury - I lost track.

They're suing me under the Mercury name, but sometimes they mention Barclay's, so I had to Google to find out that was actually under the bankname then look there for a Mercury contract.  It was very confusing. 

 

 

[WhoCares1000]

1 hour ago, shadow99 said:

I do see a Barclay's folder as well. That contract also has an arbitration clause that looks about the same - maybe identical - to the one I have from the other folder.

My card was sold several times over the years - it went from Juniper > Mercury > Barclays, or Juniper > Barclays > Mercury - I lost track.

They're suing me under the Mercury name, but sometimes they mention Barclay's, so I had to Google to find out that was actually under the bankname then look there for a Mercury contract.  It was very confusing. 

 

 

Regardless of who the debt has been sold or transferred to, the initial account was with Barclays when you defaulted so that is the contract you use.

[BackFromTheDebt]

51 minutes ago, WhoCares1000 said:

Regardless of who the debt has been sold or transferred to, the initial account was with Barclays when you defaulted so that is the contract you use.

This brings up an important point. 
 

There are also many mergers in the banking world.  Also some banks buy accounts from other banks. 
 

Suppose you open an account with bank A. Later bank B buys up all of bank A’s credit card accounts.  Then, bank C merges with bank B and now you have bank C as your bank.  At some point you default.  Bank C sells the account to JDB D which later sells to to JDB E. 
 

Which is the proper agreement?

 

The proper agreement is whatever agreement was in effect when you last used the card, or the last payment.  Suppose you used the card last when bank B owned the account but made your last payment when bank C owned the account. Use the account with the better arbitration provision.  If it is bank C, your argument is the bank C account was in effect at the time of default ergo the correct one.  If bank B had the better provision, especially if there is a survivability clause, your argument is you never accepted the bank C agreement and the bank B agreement has a survivability clause.  
 

There was one time I defaulted on an account with a bank; can’t remember which one.  They either added an arbitration provision after default or else changed to a better one.  I sent a letter to the OC, CMRRR, saying I accepted all changes to the card agreement.  Thus, I was able to use a better agreement.  
 

OTOH I defaulted with Cap 1 back when they had an arbitration agreement.  So I took them to JAMS and they ran away. 

[nobk4me]

Another thought: does NJ have a borrowing statute?  If it does, Barclays uses Delaware law where the SOL is 3 years.  So depending on when in 2018 the last payment was made, this could be out of statute.  Again, IF New Jersey has a borrowing statute.  

That said, Barclays has an arb clause, so I would use that strategy.  Note, if you use arb, do not answer their discovery with substantive answers.  You need to OBJECT to each one of them, on the grounds that arbitration has been elected and a jurisdictional motion (the Motion to Compel Arbitration that you need to file soon) is before the court.   The reason for the objection is that going too far in litigation could waive your arb rights.

[shadow99]

In the Mercury/Barclay case, Mercury has slightly better wording, so I'm going with that.

The Barclay only has AAA and has this:

Alternatively, you and we may pursue a Claim within the jurisdiction of the Justice of the Peace Court in Delaware, or the equivalent court in your home jurisdiction, provided that the action remains in that court, is made on behalf of or against you only and is not made part of a class action, private attorney general action or other representative or collective action. 

I think that's small claims court?

Mercury has JAMS and only discusses small claims, which this case isn't filed in.  The last case I had, the plaintiff's attorney unsuccessfully tried to argue that Virginia General District Court should be treated the same as small claims court according to the "spirit" of the contract. The judge did not agree.  He said that the contract allowed arbitration and that he thought I was entitled to that option - or something to that effect. Entitled is probably not the right word. 

[Jack in NJ]

On 11/30/2021 at 3:58 AM, Bulldoger said:

What court are you being sued in

Sorry for delay......Ocean County Superior Court Civil Part.

On 11/30/2021 at 3:58 AM, Bulldoger said:

When is the deadline to respond to those request?

I think it's 35 days, I'm still trying to confirm.

Also, I received an email asking me if I wanted to discuss settlement.

How realistic is it to get the amount sued down to 25%?

How much is Arbitration normally? $250?

Thank you to everyone helping me so far. I really appreciate it.

This process is extremely stressful to me.

[Bulldoger]

How realistic is it to get the amount sued down to 25%?

If you can file a motion to compel arbitration before you have to respond to Interrogatories, Notice to produce and Request for Admissions.

Then yes 25% is realistic. 

[WhoCares1000]

If you have 25% on hand, once you explain to the attorney that they will not be able to collect from you and 25% is the best they will get, odds are they will accept it. As other posters have said, make the initial offer after your MTC is granted but before you file for arbitration.

[Jack in NJ]

Spent the last hour looking for this answer.

This is so overwhelming.

How do you file a motion to compel arbitration?

Thank you in advance for any help.

Edit: Is this it? https://www.njcourts.gov/forms/11669_notice_arb_hearing.pdf

[BV80]

26 minutes ago, Jack in NJ said:

Spent the last hour looking for this answer.

This is so overwhelming.

How do you file a motion to compel arbitration?

Thank you in advance for any help.

Edit: Is this it? https://www.njcourts.gov/forms/11669_notice_arb_hearing.pdf

That appears to be court arbitration relating to default judgments.   Note the first line references a default judgment.  You want arbitration based on the cardmember agreement (private, contractual arbitration).

Read this thread.

https://www.creditinfocenter.com/community/topic/329436-arbitration-overview-and-strategy-2018-most-up-to-date-info/

 

[Jack in NJ]

Thank you for the advice.

I decided to hire a lawyer.

He has been negotiating with Ragan and Ragan/Velocity Investments and 50% is the best that my lawyer can get.

I was really hoping for 25-40% but it's just not happening.

What do you guys think?

Thank you ahead!

 

[WhoCares1000]

If you cannot afford the 50%, then the only route is to let them get the judgement and then they will find out that they cannot collect unless you win the lottery or some distant uncle gives you money from their estate. I am shocked that your attorney did not explain that to them.

I would simply inform my bank at this point that any income in the account is from SSI and exempt from any judgement seizure and ensure that no more than 2 months worth of income is kept in the account. When they try to do a asset deposition (hoping that you will not answer and can put you in jail to seize the bond), you answer it and that will be that with that.

Unfortunately some people look at the larger prize without realizing that it is unobtainable.

[texasrocker]

17 hours ago, Jack in NJ said:

Thank you for the advice.

I decided to hire a lawyer.

He has been negotiating with Ragan and Ragan/Velocity Investments and 50% is the best that my lawyer can get.

I was really hoping for 25-40% but it's just not happening.

What do you guys think?

Thank you ahead!

 

Not a good lawyer if he just negotiates a settlement instead of fighting the case.

 

3 hours ago, WhoCares1000 said:

When they try to do a asset deposition (hoping that you will not answer and can put you in jail to seize the bond), you answer it and that will be that with that.

 

LMAO.  Cite even one provable example where someone was incarcerated for not answering a JDB.

[BV80]

1 hour ago, texasrocker said:

Not a good lawyer if he just negotiates a settlement instead of fighting the case.

 

LMAO.  Cite even one provable example where someone was incarcerated for not answering a JDB.

I don’t know about all states, but in some states, a debtor’s exam is done by an order of the court.  Failure to appear is a violation of the order and can result in a bench warrant issued for the debtor’s arrest.  

[WhoCares1000]

@texasrocker

https://www.startribune.com/in-jail-for-being-in-debt/95692619/
 

Although this was 10 years ago, quite a bit of the conditions which cause this issue still exist in Minnesota so yes, you can end up in jail if you don't answer a asset deposition. Other states may vary.

[texasrocker]

2 hours ago, WhoCares1000 said:

@texasrocker

https://www.startribune.com/in-jail-for-being-in-debt/95692619/
 

Although this was 10 years ago, quite a bit of the conditions which cause this issue still exist in Minnesota so yes, you can end up in jail if you don't answer a asset deposition. Other states may vary.

I stand corrected then...

Great entertaining article!