Velocity Investments LLC Suing my husband

[kennerchick]

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

[FicoMike0]

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.

[kennerchick]

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.

[SouthJamaica]

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@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

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Your husband should consult with an attorney in your area.

[ptatohed]

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.  

[kennerchick]

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.  

[FicoMike0]

I think you're doing fine so far. 

[FicoMike0]

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?

[kennerchick]

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 

[JoeRockhead]

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