topic Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC in Rebuilding Your Credit

Velocity Investments LLC Suing my husband

kennerchick — Fri, 05 Jul 2024 17:05:01 GMT

Hi,
My husband received a summons yesterday (July 4th). We do not have a contract with Velocity Investments. Upon searching Google, I have found that they are debt buyers. This company never sent any debt validation to us. They contacted a lawyer Gregory Eaton, from Eaton Group Attornies. They have had 33 complaints in the last 3 years and Velocity Investments has 230 complaints closed in last 3 years. 177 complaints closed in last 12 months

Upon further searching I found this

What happens when a personal loan is sold? Federal law protects borrowers when loans are bought and sold by requiring that both the old and new lenders notify you in writing within 15 days of a sale that a transfer has taken place. The letters should provide the name of the new lender, how and where payments can be made, and when your next payment is due.

This NEVER happened! I need to do an ANSWER to the summons, and I have NO idea what to say. We owe it, but my husband is on disability, we were forced to move 2 yrs ago due to our rental home being sold and our rent now is over half of what he makes. My disability was denied and I don't work. What do we do? Will they be able to take his disability check? Everything I have read says no they can't unless it's federal and it isn't. My husband is afraid of going to jail and I keep telling him he isn't going to jail. Please guide me in how to deal with this. I have 10 days which started today to do the Answer. Thank You

Re: Velocity Investments LLC Suing my husband

FicoMike0 — Fri, 05 Jul 2024 19:20:15 GMT

Sorry this is happening to you. There are probably folks here that can help, but I think they'll need all the ugly details. Hard to help with the answer, not knowing exactly what the question is.

Generally good to tell the truth, but also don't admit to anything. If you owe money to abc and velocity says you owe them, deny it. Point out you never heard of them. If they claim they bought the abc debt ,demand proof. Also demand proof you owed abc. If they have paperwork regarding a third party (abc), demand a witness from abc who can be questioned.

See if there is a free legal clinic who will help.

Re: Velocity Investments LLC Suing my husband

kennerchick — Fri, 05 Jul 2024 19:26:18 GMT

Thank you. I found https://la.freelegalanswers.org/ and just submitted all my questions. We unfortunately do owe it, they have the amount, they do not have the original creditor that I can tell. Things happened and now we can't pay it. Limited income SSDI and in a place more expensive than it was when we got the loan.

Re: Velocity Investments LLC Suing my husband

SouthJamaica — Fri, 05 Jul 2024 19:54:42 GMT

@kennerchick wrote:
Hi,
My husband received a summons yesterday (July 4th). We do not have a contract with Velocity Investments. Upon searching Google, I have found that they are debt buyers. This company never sent any debt validation to us. They contacted a lawyer Gregory Eaton, from Eaton Group Attornies. They have had 33 complaints in the last 3 years and Velocity Investments has 230 complaints closed in last 3 years. 177 complaints closed in last 12 months

Upon further searching I found this
What happens when a personal loan is sold? Federal law protects borrowers when loans are bought and sold by requiring that both the old and new lenders notify you in writing within 15 days of a sale that a transfer has taken place. The letters should provide the name of the new lender, how and where payments can be made, and when your next payment is due.

This NEVER happened! I need to do an ANSWER to the summons, and I have NO idea what to say. We owe it, but my husband is on disability, we were forced to move 2 yrs ago due to our rental home being sold and our rent now is over half of what he makes. My disability was denied and I don't work. What do we do? Will they be able to take his disability check? Everything I have read says no they can't unless it's federal and it isn't. My husband is afraid of going to jail and I keep telling him he isn't going to jail. Please guide me in how to deal with this. I have 10 days which started today to do the Answer. Thank You

Your husband should consult with an attorney in your area.

Re: Velocity Investments LLC Suing my husband

ptatohed — Fri, 05 Jul 2024 20:27:39 GMT

What do you mean by summons? A summons to appear in court? With court locations, date, and time?

You may want to post a redacted copy of the letter/summons here for extra help.

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

kennerchick — Sat, 13 Jul 2024 19:49:34 GMT

We had to do a petition and admission of fact. It was due by the 15th, so we turned it in yesterday. My husband simply said he doesn't know the company, never signed any contract with this company, haven't received any information from this company therefore he could not verify anything to the fact that they were asking. Also included that the only income my husband has is disability to try to make them understand they won't get anything from him. As far as I've been told they can't take it as long as it is direct deposited and it is, we have NOTHING of value for them to take.

Velocity Investments LLC is a debt buyer, I have that for fact as I reported them to the BBB and they responded that the purchased the debt in good faith. Right there is saying that we did not have a contract with them! They said if we had any more questions to go to Eaton Group!

Today we received a book of paperwork from Eaton Group as verification but again it all has Velocity on it! From what I could tell. My anxiety came up as soon as I saw the book of papers and I couldn't deal with it. I'm shakey now.

So I have a question as to a debt collector (Eaton Group) suing on behalf of another debt collector. Is this legal?? I have the paperwork that says Eaton Group is a debt collector! I'm looking for anyway out of the lawsuit.

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

FicoMike0 — Sat, 13 Jul 2024 22:25:52 GMT

I think you're doing fine so far.

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

FicoMike0 — Sat, 13 Jul 2024 22:34:50 GMT

Let them trace back to the original creditor. Contest everything, make it difficult for them. Remember, it costs them a lot more to show up in court than it does you. If they show up with paper, as for a witness you can question. Every time they come back to court, it costs them money. Did the legal clinic offer any help?

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

kennerchick — Sat, 13 Jul 2024 23:54:30 GMT

Thank You. Yep I did, but I need to contact them again if we are going to court. We are so nervous! We know he won't go to jail. But it's our money. He's only on disability, direct deposited, only income. When I called and asked when we were to bring it to the court, I asked the clerk of court if they could take his disability, and she said she didn't know, but if we ignored it then they'd be able to.

I did not know a debt buyer could represent another debt buyer in a law suit. I'm praying they don't want to preceed with the law suit. Because my husband is very uncomfortable in speaking about stuff like this, he gives me that to do because I think faster. LOL

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

JoeRockhead — Sun, 14 Jul 2024 00:31:23 GMT

Are you sure they're both debt buyers? A collection agency, or a debt buyer acting in the capacity of a collection agency on behalf of the current owner of the debt can absolutely bring a suit.

However, they must show (have documentation) proof to the court of the contract, or agreement between you and the original creditor. They could have bought the debt in good faith, but they may not have all the documents required and are just trying to scare you into paying up. Best case they don't have it, and can't provide any proof the debt is yours... they decline to proceed, or it gets dismissed.

Worst case they get a judgement. Hopefully you're getting some competent legal advice from an attorney in the best way to proceed, as well as what your legal exposure might be

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

kennerchick — Sun, 14 Jul 2024 14:38:39 GMT

I found this on here - https://louisianalawhelp.org/resource/garnishment-issues#:~:text=In%20Louisiana%2C%20disposable%20earnings%20are,a%20creditor%20is%20considered%20exempt.

About Wage Garnishment

Wage garnishment is a legal process to collect money that you owe for debt. This debt may be unpaid taxes, child support, or other debts. Certain types of income, such as Social Security and disability benefits, are exempt from garnishment.

Re: Velocity Investments LLC Suing my husband

coldfusion — Sun, 14 Jul 2024 15:00:49 GMT

Since this is going to be a civil and not criminal case you can tor try a search online using something like 'free legal aid near me' for either non-profits, or law firms that perform pro bono (i.e. free) work as a public service, that provide legal assistance to those who qualify due to low income and/or disability.

Insofar as low income being a qualifier I think the typical threshold is at 125% of the federal poverty level but you'd need to fact-check that depending on the state you live in and the organization you talk to.

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

kennerchick — Sun, 14 Jul 2024 18:09:33 GMT

Eaton Group is a debt collection agency - Velocity Investments, LLC is a debt buyer. Eaton Group is listed as the lawyer. So lawyers can be a debt collection agency and sue on behalf of the debt buyer? I don't care if there is something that goes on his credit report, I'm just worried about his disability. My husband has not felt right since all of this started and I'm worried that all of this will put him in the hospital. Can I counter sue just due to all the stress? I'm going to search for a lawyer tomorrow that is pro bono

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

FicoMike0 — Mon, 15 Jul 2024 01:13:33 GMT

You want to counter sue for their trying to collect a debt you actually owe? I think id just try to drag it out and hope they lose interest. It sounds like your husband is judgement proof anyway. Just make sure any assets are in your name.

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

FicoMike0 — Mon, 15 Jul 2024 01:17:32 GMT

Another thing, don't do anything that might bring a claim against you!

A young lawyer told me about some good advice she got from an older lawyer. "If you have a case where jail time might be involved, make sure it's the client and not you."

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

FicoMike0 — Mon, 15 Jul 2024 01:22:06 GMT

Here's another idea. How much would it be worth to you to end this mess? $ 100? Contact these debt pirates and tell them that you would like to buy your husband's debt. Offer them $100 and tell them it's $100 more than they'll ever collect from him!

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

pizzadude — Mon, 15 Jul 2024 15:58:32 GMT

Moved to Rebuilding Your Credit

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

vntrsc — Tue, 16 Jul 2024 00:28:17 GMT

@kennerchick wrote:
Eaton Group is a debt collection agency - Velocity Investments, LLC is a debt buyer. Eaton Group is listed as the lawyer. So lawyers can be a debt collection agency and sue on behalf of the debt buyer? I don't care if there is something that goes on his credit report, I'm just worried about his disability. My husband has not felt right since all of this started and I'm worried that all of this will put him in the hospital. Can I counter sue just due to all the stress? I'm going to search for a lawyer tomorrow that is pro bono

Eaton Group is a law firm. Law firms that help collect debts are considered to be debt collectors.

The law firm is not suing on behalf of the debt buyer. If the debt buyer is listed as the plaintiff, then it is the debt buyer who sued your husband. The law firm is just representing the debt buyer in court.

Just as if you decided to sue someone, you could hire a lawyer to represent you. The lawyer would do all the work such as writing the complaint, filing it with the court along with motions, etc., but you would be the "plaintiff" who is doing the suing. The lawyer would simply be representing you and speaking for you in court.

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

HelpfulGUy — Tue, 20 Aug 2024 18:29:31 GMT

When i had an issue with Velocity a couple of years ago i used SoloSuit. Just google them. They do everything and mail out the answers to the lawyer and the court on your behalf. It was worth it for me. I ended up getting a settlement for 25% of the total debt and no court cost.

Re: Questions on debt buyers suing my husband - 1 is Velocity Investments LLC

Cowboys4Life — Tue, 20 Aug 2024 19:18:48 GMT

"What happens when a personal loan is sold? Federal law protects borrowers when loans are bought and sold by requiring that both the old and new lenders notify you in writing within 15 days of a sale that a transfer has taken place. The letters should provide the name of the new lender, how and where payments can be made, and when your next payment is due."

The answer to this for you is in the last statement. This law applies to loans in good standing so you can maintain that good standing. The best example is a mortgage or car payment. These are secured assets and legally the borrower has a right to know if a new creditor is servicing the loan to protect the asset. Once you defauted on the loan and it was charged off this no longer applies because you had stopped making payments at least 6 months earlier. Under contract law they do not need your permission to sell the bad debt. They also do not have to validate it prior to suing you. Once they sue they also don't have to validate you have to do discovery.

"Velocity Investments LLC is a debt buyer, I have that for fact as I reported them to the BBB and they responded that the purchased the debt in good faith. Right there is saying that we did not have a contract with them! They said if we had any more questions to go to Eaton Group! "

Velocity buys debts from Web Bank. If you opened credit with Web Bank that is the original creditor. You DO have a contract with Velocity. This is contract law 101. When they purchased the debt they got all the rights of Web Bank which includes being able to sue you for the debt. They step into the place of Web Bank because as the owner of the debt they are now the creditor. They are correct on referring you to the law firm because you are now being sued therefore all questions have to go through them as the representing law firm. When you represent yourself pro-se you have to be comfortable enough to communicate with the opposing lawyer(s).

"I'm looking for any way out of the lawsuit."

There are 2 ways out of this lawsuit. One is to file bankruptcy if you qualify. The other is to notify Velocity and Eaton Group that your only income is SSDI. Under Federal law SSDI cannot be garnished and the bank account cannot be levied provided there is not more than 2 months of SSDI money in there. ANY other money in the account is fair game. That is why only the SSDI should go in there. SOME (not all) creditors will drop a lawsuit if they know the only funds the defendant has are federally protected and they have zero chance of collecting. Be aware they will not just take your word for it that SSDI is the only income. You may be required to submit bank statements and tax records to qualify but if it makes the suit be dismissed then it would be worth it.

If they won't drop the lawsuit because of SSDI then their only recourse if the get a judgment is to pull you in to court for a debtor's exam. If you are served for that you HAVE to go. Failure to respond and produce required documents like bank statements or tax returns and not showing up and result in a failure to appear warrant and arrest. Beyond that unless you have assets that can be seized under state law they really don't have any way to collect on the judgment.