BadDebtBeGone Posted March 3 Report Share Posted March 3 Hello everyone, just a regular guy here needing some expert advice and/or feedback please I received a Summons & Complaint from Velocity Investments, LLC from their attorney in Rhode Island. The Complaint states the following: 1. Defendant entered into a contract with Cross River Bank and was issued a Loan serviced by Upstart Network Inc. 2. The loan was assigned to Plaintiff. 3. Defendant has breached the terms of said contract by reason of failure to make repayment to Plaintiff as required there by. 4. Defendant is indebted to Plaintiff in the amount of $10784.34 I received a Superior Court Summons stating, as per Rule 13(a), my answer must state any counterclaim or will be barred from making such claim in any other action. Next 2 pages attached are Proof Of Service that are not completed. Then the 4 line Complaint and a right to have interpretor doc following. There are no docs supporting such claim. No original contract, no chain of title, no promissory note, no bill of sale... Absolutely nothing!! Is that enough to add a Motion to Dismiss in my answer? Are they required to submit docs validating their Complaint at this stage? Also, I am going out of town for business next week for 10 days and then again for 5 days immediately thereafter... Should I mention this in my answer? I don't want to be sent documents and not be here to reply in a timely manner. Should I mention anything about possibly submitting MTC arb in my answer or should that be mentioned separately after my answer? Is usury argument possible? I believe the RI penalty for usury would make contract void. Also... if I did sign anything ever it was electronically and in Massachusetts. I've read sooo many different insights I'm starting to confuse myself and don't know which is the correct way to proceed... Again, any advice and /or guidance would be greatly greatly appreciated and please let me know if you need any other information from my side. Thanks in advance Quote Link to comment Share on other sites More sharing options...
BackFromTheDebt Posted March 3 Report Share Posted March 3 I don’t know all the rules of civil procedure for your state. In most places they don’t have to include anything with the complaint. Strange but true. About 90 or 95% of the time they get a default judgment so they don’t worry about it. It is only if you answer the summons and they file a Motion for Summary Judgment that they provide that stuff, or sometimes in discovery. As far as arbitration — that is only possible if the loan agreement has an arbitration provision. If not, you can’t arbitrate. If they do have an arbitration clause you would (in states other than Florida) a. File an answer with an affirmative defense of improper venue due to the arbitration clause b. File a MTC arbitration c. Include a copy of the contract with the arbitration agreement 1 Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted March 3 Report Share Posted March 3 19 minutes ago, BadDebtBeGone said: There are no docs supporting such claim. No original contract, no chain of title, no promissory note, no bill of sale... Absolutely nothing!! They aren't required to attach them to the complaint. A defendant has to seek that evidence in discovery. 20 minutes ago, BadDebtBeGone said: Is that enough to add a Motion to Dismiss in my answer? A motion to dismiss and your answer are to different things legally but the answer is no it is not a basis for a motion to dismiss. 21 minutes ago, BadDebtBeGone said: Are they required to submit docs validating their Complaint at this stage? No. See my answer above. Proof is presented at trial not filing the complaint. 21 minutes ago, BadDebtBeGone said: Should I mention anything about possibly submitting MTC arb in my answer or should that be mentioned separately after my answer? If the contract provides for an arbitration option you should use it as an affirmative defense in your answer. 22 minutes ago, BadDebtBeGone said: Is usury argument possible? NO 23 minutes ago, BadDebtBeGone said: Also, I am going out of town for business next week for 10 days and then again for 5 days immediately thereafter... Should I mention this in my answer? I don't want to be sent documents and not be here to reply in a timely manner. NO you do not mention this in your answer. The court doesn't care and if you miss a deadline due to personal travel you may not be able to undo it. If you cannot be home to receive documents or someone on your behalf then you need to hire a lawyer to represent you who can. 1 Quote Link to comment Share on other sites More sharing options...
hsha1411 Posted March 3 Report Share Posted March 3 @ClydesmomIsn't this possibly a "true lender" issue, whereas a lender not legally allowed to exceed interest percentage in the state avoids it by going through a bank. Seems like the model for upstart and other online platforms as such. @BadDebtBeGone I am in a similar situation with Velocity and they actually attached a promissory note, so I am sure the filing attorney has one...maybe. There is this aribitration clause below which to my laymen mind means its good for motion to compel arb. I am contemplating on what to do, I had consulted a consumer law attorney and she said she can defend this and possibly get them to dismiss, or settle for low amount. In the end, I just want a decent settlement if it avoids getting a defense attorney and going through the hoopla. I just want this out of my sight. 1 Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted March 3 Report Share Posted March 3 25 minutes ago, hsha1411 said: Isn't this possibly a "true lender" issue, whereas a lender not legally allowed to exceed interest percentage in the state avoids it by going through a bank. Seems like the model for upstart and other online platforms as such. READ the terms of the contract you signed. You said you signed for the loan when in Massachusetts. That means either the laws of MA or NJ where Cross River (the OC) is located apply. The only laws of RI that apply to your contract is the statute of limitations on suing you. What interest rate is the loan contract stating? 1 Quote Link to comment Share on other sites More sharing options...
hsha1411 Posted March 3 Report Share Posted March 3 1 minute ago, Clydesmom said: READ the terms of the contract you signed. You said you signed for the loan when in Massachusetts. That means either the laws of MA or NJ where Cross River (the OC) is located apply. The only laws of RI that apply to your contract is the statute of limitations on suing you. What interest rate is the loan contract stating? sorry, I am in Illinois and its at 16% on the note. I just hopped on this board, OP has a similar suit but in Massachussets. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted March 3 Report Share Posted March 3 1 hour ago, hsha1411 said: I am in Illinois and its at 16% on the note. There is no state in the US that identifies 16% as usury interest. Some states are as high as 31% and not usury. 1 hour ago, hsha1411 said: I just hopped on this board, OP has a similar suit but in Massachussets. This is why we ask that you not hijack someone else's thread even if your circumstances are similar. Quote Link to comment Share on other sites More sharing options...
hsha1411 Posted March 7 Report Share Posted March 7 On 3/2/2023 at 6:55 PM, BadDebtBeGone said: Hello everyone, just a regular guy here needing some expert advice and/or feedback please I received a Summons & Complaint from Velocity Investments, LLC from their attorney in Rhode Island. The Complaint states the following: 1. Defendant entered into a contract with Cross River Bank and was issued a Loan serviced by Upstart Network Inc. 2. The loan was assigned to Plaintiff. 3. Defendant has breached the terms of said contract by reason of failure to make repayment to Plaintiff as required there by. 4. Defendant is indebted to Plaintiff in the amount of $10784.34 I received a Superior Court Summons stating, as per Rule 13(a), my answer must state any counterclaim or will be barred from making such claim in any other action. Next 2 pages attached are Proof Of Service that are not completed. Then the 4 line Complaint and a right to have interpretor doc following. There are no docs supporting such claim. No original contract, no chain of title, no promissory note, no bill of sale... Absolutely nothing!! Is that enough to add a Motion to Dismiss in my answer? Are they required to submit docs validating their Complaint at this stage? Also, I am going out of town for business next week for 10 days and then again for 5 days immediately thereafter... Should I mention this in my answer? I don't want to be sent documents and not be here to reply in a timely manner. Should I mention anything about possibly submitting MTC arb in my answer or should that be mentioned separately after my answer? Is usury argument possible? I believe the RI penalty for usury would make contract void. Also... if I did sign anything ever it was electronically and in Massachusetts. I've read sooo many different insights I'm starting to confuse myself and don't know which is the correct way to proceed... Again, any advice and /or guidance would be greatly greatly appreciated and please let me know if you need any other information from my side. Thanks in advance ANy updates on this boss? 1 Quote Link to comment Share on other sites More sharing options...
BadDebtBeGone Posted March 8 Author Report Share Posted March 8 On 3/2/2023 at 8:16 PM, BackFromTheDebt said: I don’t know all the rules of civil procedure for your state. In most places they don’t have to include anything with the complaint. Strange but true. About 90 or 95% of the time they get a default judgment so they don’t worry about it. It is only if you answer the summons and they file a Motion for Summary Judgment that they provide that stuff, or sometimes in discovery. As far as arbitration — that is only possible if the loan agreement has an arbitration provision. If not, you can’t arbitrate. If they do have an arbitration clause you would (in states other than Florida) a. File an answer with an affirmative defense of improper venue due to the arbitration clause b. File a MTC arbitration c. Include a copy of the contract with the arbitration agreement Thank you for the info. I am almost done drafting my answer and will be sending via certified express mail tomorrow. I don't have a copy of the original contract but searched high & low and it appears there is an arbitration clause included. Do I send the motion along with my answer or separately? I added a part at the end asking for consideration of my travel plans for work, as will be across country in different time zone... Is this an appropriate way to advise this? Again thank you for your reply and any further info will be greatly appreciated. Regards Quote Link to comment Share on other sites More sharing options...
BadDebtBeGone Posted March 8 Author Report Share Posted March 8 On 3/2/2023 at 8:19 PM, Clydesmom said: They aren't required to attach them to the complaint. A defendant has to seek that evidence in discovery. A motion to dismiss and your answer are to different things legally but the answer is no it is not a basis for a motion to dismiss. No. See my answer above. Proof is presented at trial not filing the complaint. If the contract provides for an arbitration option you should use it as an affirmative defense in your answer. NO NO you do not mention this in your answer. The court doesn't care and if you miss a deadline due to personal travel you may not be able to undo it. If you cannot be home to receive documents or someone on your behalf then you need to hire a lawyer to represent you who can. Ok thank you for your helpful reply. Sounds like I may need to seek council then, as my travel plans for work are already made, paid and cannot be changed. All of your other comments are noted and appreciated. Thanks again Quote Link to comment Share on other sites More sharing options...
BadDebtBeGone Posted March 8 Author Report Share Posted March 8 On 3/2/2023 at 9:48 PM, Clydesmom said: READ the terms of the contract you signed. You said you signed for the loan when in Massachusetts. That means either the laws of MA or NJ where Cross River (the OC) is located apply. The only laws of RI that apply to your contract is the statute of limitations on suing you. What interest rate is the loan contract stating? I unfortunately cannot find the original contract and have no clue if any fee was charged for the loan origination, but if not then the rate was 37%+... Quote Link to comment Share on other sites More sharing options...
BadDebtBeGone Posted March 8 Author Report Share Posted March 8 On 3/6/2023 at 9:54 PM, hsha1411 said: ANy updates on this boss? I am finishing up my reply and will be submitting tomorrow, but will be contacting council today to get further advice due to my travel plans for work. Quote Link to comment Share on other sites More sharing options...
BackFromTheDebt Posted March 8 Report Share Posted March 8 3 hours ago, BadDebtBeGone said: Thank you for the info. I am almost done drafting my answer and will be sending via certified express mail tomorrow. I don't have a copy of the original contract but searched high & low and it appears there is an arbitration clause included. Do I send the motion along with my answer or separately? I added a part at the end asking for consideration of my travel plans for work, as will be across country in different time zone... Is this an appropriate way to advise this? Again thank you for your reply and any further info will be greatly appreciated. Regards You may send the MTC along with your answer. Be sure to include a copy of the agreement to prove there is an arbitration clause Quote Link to comment Share on other sites More sharing options...
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