Velocity is suing me over citibank

[nicnac]

I filed an answer to their summon but did not include AD and its too late because its pass the 10 day. They said I owe 10k. They sent me RFA, RFP and SI. Im going to respond to the discovery and then file a motion to compel arbitration at the CMC. Is there anything I should be aware of since i did not add AD ? I have a waiver so i dont have to pay filing fee. Do you think velocity will pay the fee or dismiss it ? 

[LaneBlane]

You don't want to respond to discovery if you plan to file a MTC (Motion to Compel Arbitration).  You need to file the motion first, then respond to their discovery requests a particular way.

Did the judge approve and set a schedule for discovery, or did they send discovery requests without any direction from the court?

You may have the option to file a motion for leave to file an amended answer.  A motion for leave essentially asks the judge permission to do something.

If Velocity is going after you for $10K, they're not going to simply dismiss this.  They may follow you into arbitration.

Who is the original creditor?  Have you read the arbitration provision of the agreement?  What kind of California court was this filed in?

[nicnac]

4 minutes ago, LaneBlane said:

You don't want to respond to discovery if you plan to file a MTC (Motion to Compel Arbitration).  You need to file the motion first, then respond to their discovery requests a particular way.

Did the judge approve and set a schedule for discovery, or did they send discovery requests without any direction from the court?

You may have the option to file a motion for leave to file an amended answer.  A motion for leave essentially asks the judge permission to do something.

If Velocity is going after you for $10K, they're not going to simply dismiss this.  They may follow you into arbitration.

Who is the original creditor?  Have you read the arbitration provision of the agreement?  What kind of California court was this filed in?

the judge gave us case management conference day. Velocity lawyer just sent them on their own, The original creditor is citibank, sorry should've written title better. Superior court. I did read the arbitration, say we pay for own attorney fees, both parties can request arbitration.. I want to make sure i respond to them or they might ask the court to rule in their favor since i fail to participate in discovery.

[LaneBlane]

What are your defenses to the amount they claim you owe?

[nicnac]

25 minutes ago, LaneBlane said:

What are your defenses to the amount they claim you owe?

i did not write any defense because I was not sure at the time... I needed to answer because I had to leave out of state and wanted to make sure I did beforeI had left, I did check that i deny the claim. Im going to file my cmc today and send their response to the discovery before the deadline. I just did not want to make a mistake so it goes well. I even called to settle and they didn't want too, so my only option is arbitration. I dont know if my discovery response are well put to it where it cant be used against me. 

[nicnac]

39 minutes ago, LaneBlane said:

What are your defenses to the amount they claim you owe?

i did a general deny and check the box only 

[nobk4me]

1 hour ago, LaneBlane said:

If Velocity is going after you for $10K, they're not going to simply dismiss this.  They may follow you into arbitration

Maybe they will.  Or maybe they won't.  Is JAMS available in the OC's arb clause?  If so, file with JAMS, as they are more expensive than AAA.   Remember, the plaintiff is a JDB that probably paid far less than 10 cents on the dollar for this debt.  For them to file a counterclaim, for the debt, if you file in JAMS, they will get an invoice from JAMS for $7000.  And that's just to start.  At the rates the arbitrators charge, it won't take long for the $5000 retainer to be used up, and JAMS will want more.  I can see a JDB saying this isn't worth it, it's better to go after easier prey.

For answering their discovery, I would recommend this response: OBJECTION.  Arbitration has been elected, and a jurisdictional motion is pending before the court. Scope of discovery is to be determined by the arbitration forum.

 

[LaneBlane]

What's your actual defense against the debt they claim you owe?  Do you have one?

[LaneBlane]

8 minutes ago, nobk4me said:

At the rates the arbitrators charge, it won't take long for the $5000 retainer to be used up, and JAMS will want more.  I can see a JDB saying this isn't worth it, it's better to go after easier prey.

JAMS will reimburse any unused retainer amount to the Respondent.

The time it takes the arbitrator to conduct the administrative phone call and review any motions that come in during the discovery phase is nominal.  If the OP doesn't have a legitimate defense, Velocity will likely file a Motion for Summary Judgement upon the conclusion of discovery.  The OP would then respond.  Again, it wouldn't take much time for the arbitrator to review these motions and issue a ruling.
 

If the OP has no claim or defense, Velocity could try to seek reimbursement of their costs and fees.

[nicnac]

3 hours ago, nobk4me said:

Maybe they will.  Or maybe they won't.  Is JAMS available in the OC's arb clause?  If so, file with JAMS, as they are more expensive than AAA.   Remember, the plaintiff is a JDB that probably paid far less than 10 cents on the dollar for this debt.  For them to file a counterclaim, for the debt, if you file in JAMS, they will get an invoice from JAMS for $7000.  And that's just to start.  At the rates the arbitrators charge, it won't take long for the $5000 retainer to be used up, and JAMS will want more.  I can see a JDB saying this isn't worth it, it's better to go after easier prey.

For answering their discovery, I would recommend this response: OBJECTION.  Arbitration has been elected, and a jurisdictional motion is pending before the court. Scope of discovery is to be determined by the arbitration forum.

 

my hope is they won't and AAA it listed to be used. Im going to file MTCA tomorrow and my Response before the deadline. I was looking to amend my AD, if it was worth it but I figured the general denial will still allow me to use "prove you own this debt " during arbitration. They're suing me for breach of contract. 

[nicnac]

2 hours ago, LaneBlane said:

JAMS will reimburse any unused retainer amount to the Respondent.

The time it takes the arbitrator to conduct the administrative phone call and review any motions that come in during the discovery phase is nominal.  If the OP doesn't have a legitimate defense, Velocity will likely file a Motion for Summary Judgement upon the conclusion of discovery.  The OP would then respond.  Again, it wouldn't take much time for the arbitrator to review these motions and issue a ruling.
 

If the OP has no claim or defense, Velocity could try to seek reimbursement of their costs and fees.

Do you think I should file with the court to allow me to amend my answer?  

[nicnac]

6 hours ago, LaneBlane said:

You don't want to respond to discovery if you plan to file a MTC (Motion to Compel Arbitration).  You need to file the motion first, then respond to their discovery requests a particular way.

Did the judge approve and set a schedule for discovery, or did they send discovery requests without any direction from the court?

You may have the option to file a motion for leave to file an amended answer.  A motion for leave essentially asks the judge permission to do something.

If Velocity is going after you for $10K, they're not going to simply dismiss this.  They may follow you into arbitration.

Who is the original creditor?  Have you read the arbitration provision of the agreement?  What kind of California court was this filed in?

should i include in the discovery answers along the lines of seeking information that will be presented during arbitration? 

[LaneBlane]

3 hours ago, nicnac said:

I figured the general denial will still allow me to use "prove you own this debt " during arbitration.

"Prove you own this debt" really isn't a defense.  Velocity will have documentation that shows they purchased the debt from CitiBank.  They'll also furnish copies of statements.  This will prove standing, as well as the balance owed.

 

I looked up a credit card agreement for CitiBank to see what the arbitration provision looks like.  I would check yours to see if it includes the following paragraph:

This paragraph specifically allows an arbitrator to award reimbursement of their arbitration fee if the arbitrator finds your claim was frivolous.  According to the last sentence, the arbitrator could award Velocity reimbursement of additional expenses, including attorney's fees, if it's allowed by applicable law.  California Code of Civil Procedure §§ 128.5 and 128.7. Section 128.5 permits a court to order a party, attorney, or both to pay reasonable expenses, including attorney’s fees, resulting from bad-faith actions or tactics that are frivolous or intended solely to cause unnecessary delay. 

If your card agreement says arbitration must be through AAA, Velocity's upfront costs will be much less.  For example, with JAMS, Velocity would be required to pay $2,500 to file a counterclaim.  AAA doesn't charge a separate fee for a counterclaim.  Looking at AAA's fee schedule, the business will pay:

• $375 Filing Fee
• $1,400 Case Management Fee
• $500 Hearing Fee (if it gets that far)
• $300/Hour Arbitrator Compensation

 

[LaneBlane]

4 hours ago, nicnac said:

Do you think I should file with the court to allow me to amend my answer?  

How would you amend it?

 

3 hours ago, nicnac said:

should i include in the discovery answers along the lines of seeking information that will be presented during arbitration? 

@nobk4me told you how you should respond to discovery earlier today:  For answering their discovery, I would recommend this response: OBJECTION.  Arbitration has been elected, and a jurisdictional motion is pending before the court. Scope of discovery is to be determined by the arbitration forum.

 

4 hours ago, nicnac said:

my hope is they won't and AAA it listed to be used. Im going to file MTCA tomorrow and my Response before the deadline. I was looking to amend my AD, if it was worth it but I figured the general denial will still allow me to use "prove you own this debt " during arbitration. They're suing me for breach of contract. 

See my previous post.

[nicnac]

47 minutes ago, LaneBlane said:

"Prove you own this debt" really isn't a defense.  Velocity will have documentation that shows they purchased the debt from CitiBank.  They'll also furnish copies of statements.  This will prove standing, as well as the balance owed.

 

I looked up a credit card agreement for CitiBank to see what the arbitration provision looks like.  I would check yours to see if it includes the following paragraph:

This paragraph specifically allows an arbitrator to award reimbursement of their arbitration fee if the arbitrator finds your claim was frivolous.  According to the last sentence, the arbitrator could award Velocity reimbursement of additional expenses, including attorney's fees, if it's allowed by applicable law.  California Code of Civil Procedure §§ 128.5 and 128.7. Section 128.5 permits a court to order a party, attorney, or both to pay reasonable expenses, including attorney’s fees, resulting from bad-faith actions or tactics that are frivolous or intended solely to cause unnecessary delay. 

If your card agreement says arbitration must be through AAA, Velocity's upfront costs will be much less.  For example, with JAMS, Velocity would be required to pay $2,500 to file a counterclaim.  AAA doesn't charge a separate fee for a counterclaim.  Looking at AAA's fee schedule, the business will pay:

• $375 Filing Fee
• $1,400 Case Management Fee
• $500 Hearing Fee (if it gets that far)
• $300/Hour Arbitrator Compensation

 

I mean I would want them to prove it because they only sent me a BOS page and nothing else. Yes that is the one

[LaneBlane]

18 minutes ago, nicnac said:

I mean I would want them to prove it because they only sent me a BOS page and nothing else. Yes that is the one

Velocity is going to have more than just a Bill of Sale.  The Bill of Sale is what proves standing in order for them to sue you.  I'm sure they have the statements they need to substantiate how much is owed on the account.  It's a huge mistake to assume they don't.

Filing an MTC and getting this moved to arbitration won't make this go away.  Based on the clear language in your arbitration provision, you may put yourself in jeopardy of Velocity being awarded $10K against you, in addition to a few thousand more in arbitration costs, fees, and attorney's fees.  I personally wouldn't take that chance unless I had a legitimate defense (i.e. the amount they're seeking is incorrect and you can prove it by producing bank statements and other documentation).

When was the last payment made on the account?

 

[nicnac]

5 hours ago, LaneBlane said:

How would you amend it?

 

I would have to ask the plantiff attorney if they will allow me too, if not i have to file with the court and ask judge.

[nicnac]

3 hours ago, LaneBlane said:

Velocity is going to have more than just a Bill of Sale.  The Bill of Sale is what proves standing in order for them to sue you.  I'm sure they have the statements they need to substantiate how much is owed on the account.  It's a huge mistake to assume they don't.

Filing an MTC and getting this moved to arbitration won't make this go away.  Based on the clear language in your arbitration provision, you may put yourself in jeopardy of Velocity being awarded $10K against you, in addition to a few thousand more in arbitration costs, fees, and attorney's fees.  I personally wouldn't take that chance unless I had a legitimate defense (i.e. the amount they're seeking is incorrect and you can prove it by producing bank statements and other documentation).

When was the last payment made on the account?

 

You’re right about the AAA fees, but I'm low income and my fees get waived. The Citibank contract says they cannot make me pay their arbitration fees if I lose, unless my claim is fake. Using a real contract clause isn't fake, but I need to figure out my defenses since I have time now to request during arb. I read some articles about success in California against them. Hopefully it works in my favor. But I think for a $10K debt, it is still low to fight me in arb, in reg county court yes it's a lot. I'm probably judgement proof too so maybe they will look at it as even if we win how long will it take for us to get the money.

Have you been sued by them or someone you know? Thank you for taking your time to respond to me, it gives me a different perspective on this and how i should proceed. 

[BV80]

8 hours ago, nicnac said:

I mean I would want them to prove it because they only sent me a BOS page and nothing else. Yes that is the one

Is the lawsuit in Limited Civil court?

[LaneBlane]

2 hours ago, BV80 said:

Is the lawsuit in Limited Civil court?

They said it was superior court.

[LaneBlane]

6 hours ago, nicnac said:

I would have to ask the plantiff attorney if they will allow me too, if not i have to file with the court and ask judge.

How would you actually amend your answer?  What exactly would you add to it?

 

6 hours ago, nicnac said:

You’re right about the AAA fees, but I'm low income and my fees get waived.

Your fees don't matter here.  The objective is to put Velocity in a position where they need to pay as much money as possible in pursuit of this $10K debt.  AAA's fees are much less than JAMS, keeping their arbitration expenses lower.

 

6 hours ago, nicnac said:

The Citibank contract says they cannot make me pay their arbitration fees if I lose, unless my claim is fake. Using a real contract clause isn't fake, but I need to figure out my defenses since I have time now to request during arb.

What "real contract clause" are you using here that says your claim wouldn't be "fake"?  When you file a Demand for Arbitration, you need to state a claim.  What would your claim be?  What is your defense against the amount they're seeking?  You need answers to all these questions.

 

6 hours ago, nicnac said:

But I think for a $10K debt, it is still low to fight me in arb, in reg county court yes it's a lot. I'm probably judgement proof too so maybe they will look at it as even if we win how long will it take for us to get the money.

I helped my friend in arbitration on a case for less than $7K in JAMS where the other party had to pay more than $7K in arbitration costs, fees, and the retainer.  She ended up settling - a settlement that required the other side to write her a nice check for FDCPA violations and damages.

Being judgment proof doesn't mean the debt disappears.  If Velocity obtains a judgment against you, the legal obligation to pay remains and will hang over your head for quite some time.

 

6 hours ago, nicnac said:

Have you been sued by them or someone you know? Thank you for taking your time to respond to me, it gives me a different perspective on this and how i should proceed.

I've been involved in three arbitration cases, all of which were with JAMS.  I don't have any experience with Velocity.

[nobk4me]

22 hours ago, LaneBlane said:

 

If the OP has no claim or defense, Velocity could try to seek reimbursement of their costs and fees.

I don't think this is allowed in California.  We have seen some cases involving Portfolio Recovery, which is notorious for going all the way in arb and seeking to charge the consumer with the fees, where they do not do this in CA.

[LaneBlane]

36 minutes ago, nobk4me said:

I don't think this is allowed in California.  We have seen some cases involving Portfolio Recovery, which is notorious for going all the way in arb and seeking to charge the consumer with the fees, where they do not do this in CA.

The arbitration provision specifically allows Velocity to recover their arbitration fees if the arbitrator decides the claim was frivolous.  In addition, the arbitrator can award attorney's fees and other expenses based on applicable law.  California Code of Civil Procedure §§ 128.5 and 128.7. Section 128.5 permits a court to order a party, attorney, or both to pay reasonable expenses, including attorney’s fees, resulting from bad-faith actions or tactics that are frivolous or intended solely to cause unnecessary delay.

Here's that section of the arbitration agreement:

 

The cases involving Portfolio Recovery may not have involved an arbitration provision with this clear, specific language. 

[nicnac]

On 9/25/2026 at 6:52 AM, BV80 said:

Is the lawsuit in Limited Civil court?

its in superior court and there wasn't a bill of sales included just the last billing statement 

[nicnac]

On 9/25/2026 at 11:42 AM, nobk4me said:

I don't think this is allowed in California.  We have seen some cases involving Portfolio Recovery, which is notorious for going all the way in arb and seeking to charge the consumer with the fees, where they do not do this in CA.

yes for AAA they do not make consumers unless they find the claim was filed for harassment or frivolous. Which if there is no reasonable factual basis or legal basis at all during arb.