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Bryguy

Velocity Investments

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Hello.

 

First time posting and I'm hoping I've come to the right place for advice.

 

I have a situation with a collections company named Velocity Investments. A few months back they used a third party collections company and contacted me about a personal loan debt they alleged I owed. I found a response letter online that asked them for all sorts of information to prove the debt was mine, their right to collect, what they paid for the debt...etc. Sent the reply off certified mail, it was received, I got the stub back with the receipt signature and never heard from this company again.

 

A month or so later I get a letter from Velocity Investments themselves, it's essentially the same thing as I got from their third party minions. They are collecting on a debt I allegedly owe and so on. I send the same letter to them via certified mail and receive a confirmed receipt.  A couple weeks later I receive a letter from them stating they are "putting the matter on hold".  Cool.

 

I've now received a follow-up from them, out of the blue for something being "on hold", and well past the 30 day mark from my 'Prove it' letter. They've sent me a copy of the loan paperwork from the original lender. However nowhere on this documentation is my signature. It literally looks like something someone wrote up in Word and just entered my information in the appropriate fields.

 

So here's where I could use some pointers. I see myself presented with the following options, but I'm not sure which would be the best.

 

1. Ignore it completely. The information they sent came well after the 30-day request for validation. Therefore they failed to comply with the Debt Collections Laws.

2. Send a reply and state they failed to provide adequate proof that this debt is mine, it's past 30-days, and I'm considering the matter closed. I'll include a bit that states if they contact me again or post this to my credit report that I'll take legal action against them.

 

Any advice would be really helpful.

Thank you very much in advance.

 

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Hello and welcome to CreditBoards.

 

1. Have you ever taken out a personal or payday loan from ANYONE at ANYTIME in the past oh ... ever? What are these collectors claiming is the date of first default on this?

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I appreciate the quick reply.

 

They claim to have purchased this debt as a charge off on January 7, 2019.

Yes I have taken out a payday loan in the past, but that was several years ago.

 

I guess I'll reply to them just to do my bit of effort on my end.  I'll ask them to provide something with my signature and a receipt of their purchase. Or maybe I'll tell them they took too long to get back to me and to shove it.  Ok probably not that last part. 

 

Thank you.

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2 hours ago, Bryguy said:

1. Ignore it completely. The information they sent came well after the 30-day request for validation. Therefore they failed to comply with the Debt Collections Laws.

They didn’t have to send validation within 30 days.  
 

2 hours ago, Bryguy said:

2. Send a reply and state they failed to provide adequate proof that this debt is mine, it's past 30-days, and I'm considering the matter closed. I'll include a bit that states if they contact me again or post this to my credit report that I'll take legal action against them.

Pretty much all that’s required for validation is to show that you are the correct consumer and that the amount claimed is what the original creditor claimed was owed.  

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The kitchen sink letter that it sounds like you used is utterly useless and carries no force under federal law.  There are reasons people should never send a letter without understanding EVERY component of the letter.  There are also SOME States which DO have effective consumer laws and that will serve the consumer in a far better manner, but the consumer STILL needs to understand the law and WHY they are using particular language. 

 

Since you acknowledge having had a payday loan in the past, you need to be spending at least SOME of your time going through your own files to find ALL documentation associated with the loan(s) and the bank records reflecting both the receipt of funds AND the repayment of said funds. 

 

Taking ANY manner of action without being properly prepared leaves you roughly in the same category as a one-legged man in an ass-kicking contest or a no-armed person trying to wallpaper a room...

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WebBank yes, that's what this account was.

 

I don't mind going to court, I'll fight this till the bitter end. But I'd like to stall/delay the process as long as possible.  I'm going to write back to them and say they've failed to provide anything with my signature on it, nor any kind of purchase receipt that indicates they owe the debt. Might not get very far, but at least it gives the appearance that I'm communicating with them and asking for proof.

 

 

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1 hour ago, Bryguy said:

WebBank yes, that's what this account was.

 

I don't mind going to court, I'll fight this till the bitter end. But I'd like to stall/delay the process as long as possible.  I'm going to write back to them and say they've failed to provide anything with my signature on it, nor any kind of purchase receipt that indicates they owe the debt. Might not get very far, but at least it gives the appearance that I'm communicating with them and asking for proof.

 

 

When did you open this WebBank account?

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23 hours ago, Bryguy said:

I'm going to write back to them and say they've failed to provide anything with my signature on it, nor any kind of purchase receipt that indicates they owe the debt.  Might not get very far, but at least it gives the appearance that I'm communicating with them and asking for proof.

NONE of that is a requirement for validation and if you send that all you will be doing is telling them that you are clueless about the collection laws and how to use them to your advantage.  The only "proof" they would be required to provide is if they already had a judgment against you.  They would have to produce a copy of that record.

 

Velocity typically folds with a granted MTC arbitration. Even if you elect it now in a DV letter they will sue you.  Keep an eye on your local court docket.  It won't take them long to file against you.

 

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The account was opened in May 2018 via a company called Upgrade, which I guess is part of WebBank.

 

3 hours ago, CreditSucksNot said:

NONE of that is a requirement for validation and if you send that all you will be doing is telling them that you are clueless about the collection laws and how to use them to your advantage.

...well they'd be right on that. I don't know what I'm doing. That's why I came here at the recommendation of a friend. Googling has left me with a mountain of conflicting information.  So I was hoping to get some pointers from those who've been down this path or at least know more than I do. I don't expect this to just go away and never hear about it again, but I would like to minimize the damage if at all possible.

 

I'm not familiar with MTC Arbitration, but I will do some research into this to see if it's an option. 

 

I really appreciate everyone's input.

 

 

Edited by Bryguy

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On 12/12/2019 at 11:08 AM, Bryguy said:

WebBank yes, that's what this account was.

 

I don't mind going to court, I'll fight this till the bitter end. But I'd like to stall/delay the process as long as possible.  I'm going to write back to them and say they've failed to provide anything with my signature on it, nor any kind of purchase receipt that indicates they owe the debt. Might not get very far, but at least it gives the appearance that I'm communicating with them and asking for proof.

In the past 20 years, MOST accounts are opened with an e-signature.  The lack of anything with a pen and paper signature is a non-starter...

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See my pinned topic on arbitration. It is a financial tactic; the startup fees for the creditor run around $6200 and they cannot recover them from you. Most of the time they just walk away and the case gets closed out in the arb forum. File before they sue you and save yourself a lot of trouble.

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I'll share my experience dealing with this company.  My husband had a loan with Upstart that went into default in 2017. They bought the debt sometime in 2017. The balance was $3,369. Velocity basically sat on it for two years, until a debt collection law firm called Javitch Block contacted us In October 2019. I sent a debt validation request, which did nothing, BTW. They responded with a nearly identical copy of the first letter they sent us showing the original creditor, balance, date of last payment, etc, and they said the matter was considered verified.

 

We ignored it for a little while longer, then they sued my husband this month (12/2019). Luckily, we are in a place financially now to deal with it and hire a lawyer (I recently found a new one who is really good!) and it looks like the case they have is pretty bad, so we will pay the lawyer and it should be going away completely.

 

Depending on your financial circumstances, you could try and settle it now if that's what you can do and prefer to do, or you could just wait and see what happens. They definitely sue, but it could be a year or two years from now. You have no way of knowing, but if you can't pay and don't want to pay right now, then don't.

Edited by RehabbingANDBlabbing

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