Velocity Investments: Settling The Storm

Velocity Investments LLC is a legitimate debt collection agency. They are a purchaser of delinquent consumer debts and use a comprehensive collection strategy to turn distressed receivables to cash.

If you are being sued by Velocity Investments, it is important to first validate the debt. You can do this by requesting a debt validation letter from Velocity. If the debt is valid, you can choose to dispute the debt, negotiate a debt settlement, or ignore the debt (although this is not recommended).

If you decide to negotiate a settlement, you can do this directly with Velocity or with the help of a professional debt settlement company. Velocity may be open to settling for a lower amount than what is owed, as they likely purchased the debt for less than its original value.

Validate the debt

If you are contacted by Velocity Investments about a debt, it is important to first validate the details of the debt account. If the information is not correct, you can send a verification letter to dispute the debt.

• Check that the debt is actually yours and that no identity theft has occurred.
• Confirm that Velocity Investments owns the debt or has the legal right to collect it.
• Verify that the debt amount is correct.

This information should be included in the debt validation letter that debt collection companies are required to send you. This notice should come before or within five days of making initial contact, according to a Consumer Financial Protection Bureau (CFPB) debt collection rule. If you haven't received this letter, ask for one!

If you receive a validation letter but it doesn't have enough information about the debt, you can send Velocity Investments a debt verification letter to request additional details. You can also use a verification letter to dispute the debt if you don't agree with it. There is a 30-day window (indicated on the validation letter) for you to do so, during which time Velocity Investments may take no further action.

If the debt is valid and you agree that you owe it, you can start negotiating a settlement. You can offer to pay a small portion of the amount you owe – for example, 25%. Velocity may not accept your first offer, so be prepared for a counteroffer. Many debt collectors settle for between 40% and 60% of the original amount.

Check the statute of limitations

The statute of limitations on debt is a time-limiting legal construct that varies depending on the type of debt and the state in which it was accrued. The four main categories of debt include open-ended accounts, oral agreements, promissory notes, and written contracts.

The statute of limitations on debt starts when you miss a payment and your account is marked as delinquent. In some states, the period may also begin from the date of the most recent payment. The average statute of limitation lasts between three and six years but can be as long as 10 years.

If you are sued by a debt collector and the debt is too old, you may have a defence against the lawsuit. You may also be able to counterclaim against the collector for violating the Fair Debt Collection Practices Act (FDCPA), which prohibits suing or threatening to sue for time-barred debt.

If you are contacted by Velocity Investments about a debt, it is important to first validate the details of the debt account. If the debt is valid and you agree that you owe it, you can negotiate a settlement for less than the full amount. If Velocity Investments sues you, you can still try to negotiate a settlement, but you should also respond to the lawsuit.

Negotiate a settlement

If you are contacted by Velocity Investments, the first thing to do is to validate the debt. You can do this by requesting a debt validation letter from them. They are required to send this within five days of first contacting you. If you don't receive this letter, ask for one.

Once you have the letter, you have 30 days to validate the debt. You should do this even if you are unsure if you are responsible for it. If you don't validate the debt within 30 days, Velocity Investments may take further action. If you are unsure how to validate a debt, you can seek help from a lawyer or a professional debt settlement company.

If the debt is valid, you can try to negotiate a settlement. You can do this yourself or with the help of a lawyer or debt settlement company. First, work out what you can afford to pay. Don't sacrifice your essential needs like food or housing. You can make a lump-sum payment or negotiate a payment plan. A lump-sum payment is usually preferable for debt collectors as there is less risk of them not getting paid.

Next, make a settlement offer to Velocity Investments. Start low, perhaps 25% of the total amount, and be prepared for them to make a counteroffer. Many debt collectors settle for between 40% and 60% of the original amount. You can also try to negotiate how the debt is reported on your credit report. For example, you could ask Velocity Investments to report the debt as paid in full, which could help boost your credit score.

If you are dealing with the original creditor, they may be less willing to settle for a low amount. You may be able to settle for 20%-70% of the debt. If you are dealing with a debt buyer, they will probably accept a settlement between 1% and 50% of the amount.

What not to do

Be careful when communicating with debt collectors. Do not acknowledge the debt until you are sure it is valid, as this could reset the statute of limitations. Do not ignore the debt, as this could lead to a bigger debt and negative consequences like a lower credit score or wage garnishment.

Using a lawyer

Using a lawyer to help you negotiate a settlement can be beneficial. They can help you understand your options and build a strategic roadmap to address the situation. They can also help you fight against debts you don't actually owe and hold the debt collection company accountable for violating your rights.

Dispute the debt

If you are sued by Velocity Investments, you should not ignore the documents. While you may contest the debt being pursued, the lawsuit itself is likely legitimate and must be defended to try and prevent a default judgement.

If you receive a debt collection notice or debt collection lawsuit from Velocity Investments, here is what you need to do:

• Take note of any phone calls made before 8:00 AM or after 9:00 PM, any phone calls made to your place of work, and any use of vulgar or inappropriate language.
• File your Answer to the Summons and Complaint in a timely manner (typically within 20-30 days after being served with the lawsuit).
• In your Answer, make sure to raise affirmative defences like the statute of limitations and demand that the debt collection company provide proof of the specific amount owed.
• Consider filing a counterclaim for any violations committed by Velocity Investments of the Fair Debt Collection Practices Act.
• Use SoloSettle to negotiate a debt settlement that works for you.

If you are dealing with a debt buyer, such as Velocity Investments, they will probably accept a settlement between 1% and 50% of the amount they are suing you for. On average, debt collectors buy debts for 8% of the face value of a debt. If you are dealing with the original creditor, they will be less willing to settle for a low amount. You may be able to settle for 20% to 70% of the debt.

You can start by offering a small portion of the amount you owe, say 25%. Velocity may not accept your first offer, so be prepared for a counteroffer. Many debt collectors settle for between 40% and 60% of the original amount.

If you are sued by Velocity Investments, you should respond to the lawsuit. You can do this by filing a written Answer with the court. You can also file a counterclaim against Velocity Investments pursuant to the Fair Debt Collection Practices Act. If you prevail in this counterclaim, you could be entitled to statutory damages of $1,000, plus punitive and economic damages.

You can also dispute the debt by sending Velocity Investments a Debt Validation Letter. The Fair Debt Collection Practices Act requires Velocity Investments to provide validation of a debt within 5 days of attempting to collect it. The debt validation should include the following five points:

• The amount of the debt
• The name of the creditor
• The collector will assume the debt is valid unless the consumer sends them a Debt Validation Letter within 30 days
• If you send the collector a Debt Validation Letter, they will need to mail you validation of the debt
• If you send them a Debt Validation Letter, they will need to mail you the name and address of the original creditor

When you send a Debt Validation Letter to Velocity Investments, they must cease all collection efforts until they have officially validated the debt. Many debt collection agencies give up after receiving such a letter.

Consult a lawyer

If you are sued by Velocity Investments, it is important to consult an experienced debt defence lawyer. They will help you understand your legal position, the authenticity of the debt, and any possible defences.

If you are sued by Velocity Investments, you have 14 days to respond if the lawsuit was filed in a Justice of the Peace Court. If the case was filed in a County or District Court in Texas, you have 20 days to respond from the date you were served the lawsuit. If you do not respond within the deadline, you risk a default judgment, which could result in bank garnishments, liens, or seizures.

When responding to the lawsuit, it is important to include affirmative defences in your answer, such as the statute of limitations, mistaken identity, or identity theft. You should also demand that Velocity Investments provide proof of the specific amount owed.

If there are flaws in Velocity Investment's case, such as incorrect debt amounts or expired statutes of limitations, you may want to consider contesting the lawsuit in court. On the other hand, if you prefer to settle, you can negotiate a lower settlement amount and a manageable payment plan.

It is also important to note that you have the option to file a counterclaim if Velocity Investments has violated the Fair Debt Collection Practices Act (FDCPA) or the Fair Credit Reporting Act. An experienced lawyer can help you identify any violations and determine the best course of action.

Frequently asked questions