Have you recently received a notice that Velocity Investments, LLC is suing you for debt collection? Our North Texas debt collection defense lawyers understand that you may be confused, stressed, and not know what is happening. You may have never heard of Velocity Investments, so you may wonder if it is a scam. If it is legitimate, how do you defend yourself and beat Velocity Investments?
Warren & Migliaccio has significant success assisting Texans in resolving debt collection cases. Below, we discuss what you should know about Velocity Investments. We also discuss what to do if it sues you for debt collection.
Is Velocity Investments, LLC a Scam?
We understand that you may wonder if Velocity Investments is a scam because you have never heard of it. However, Velocity Investments is a legitimate company, and you should not ignore the lawsuit. The lawsuit is likely legitimate, and you may only have a short timeframe to contest it.
What Is Velocity Investments, LLC?
Velocity Investments, LLC is not a lender or creditor, so it is understandable if you have never heard of it. Velocity Investments, LLC, also known as Velocity Recoveries or Velocity, is a debt buyer and collection company based in Wall Township, New Jersey. The company has been in business since 2002.
It buys consumer debt portfolios from banks, credit card companies, and other financial companies. Then, it pursues the debts from the debt owners to make a profit. It may pay a financial company a fraction of the original debts for its defaulted accounts.
Velocity Investments also provides debt collection services to financial companies. In these cases, it pursues debts on behalf of its clients.
Why Is Velocity Investments, LLC Suing Me?
When a creditor cannot recover debt on its own, it may hire a third-party collection company or law firm to try to collect the debt. It may also sell the debt to a buyer to recover some of its losses.
Why would a company you have never heard of sue you for debt? Since Velocity buys delinquent or charged-off debt from creditors, it is possible it bought your defaulted account from your creditor.
Who Represents Velocity Investments?
Velocity Recoveries works with debt collection law firms across the United States. These law firms handle litigation on Velocity’s behalf. In Texas, Velocity Investments often hires Rausch Sturm LLP and Javitch Block LLC to handle its collection cases.
What to Do if Velocity Investments Files a Debt Collection Lawsuit Against You
Companies like Velocity buy thousands of defaulted accounts at a time. Without doing due diligence on the accounts to verify the debts or debt owners, they file thousands of lawsuits and hope consumers ignore them. And unfortunately, many consumers do ignore them, and the cases result in easy wins for Velocity getting legal entitlement to the money, even if it should not.
Whether you owe the debt or believe Velocity Investments has sued you by mistake, you must respond to the lawsuit to protect yourself from a default judgment. Depending on the Texas court overseeing your case, you may only have 14 days to answer it. Because of this, it is essential to move quickly.
Our North Texas debt resolution attorneys always tell potential clients that they likely have more legal options than they think to deal with a debt collection lawsuit. Even if you recognize the debt, collection lawsuits generally have weaknesses.
For example, Velocity may not have enough evidence to prove its case. However, the only way to initially put pressure on Velocity is to respond to the lawsuit within the appropriate time frame.
Your response should address Velocity’s allegations against you with an acceptance or denial. It should also state your affirmative defenses. Affirmative defenses are defenses you can prove with evidence. A few examples of affirmative defenses include but are not limited to:
- Expired statute of limitations
- Mistaken identity
- Identity theft
- The debt has been paid
- The debt amount is incorrect
The Answer you provide should also demand proof of debt validation from Velocity.
What Is the Statute of Limitations for a Texas Debt Collection Lawsuit?
Texas, like every state, has a statute of limitations, or SOL, for how long a creditor or collection company can file a lawsuit to pursue a delinquent debt. A statute of limitations is a deadline. Once the deadline passes, a creditor can no longer use litigation to seek the debt. In Texas, the statute of limitations is four years.
Do I Need an Attorney for a Velocity Investments LLC Lawsuit?
Having an attorney represent you in a debt collection lawsuit is not required. However, we recommend having one on your side. You have a better chance of getting a favorable case result if an experienced debt defense attorney defends you against Velocity.
There are many procedures to follow when preparing and filing a response to Velocity’s lawsuit and representing yourself in court. Making mistakes throughout the legal process can result in losing the case.
An experienced debt defense attorney can ensure you file a comprehensive Answer before the deadline. Your attorney will also ensure you follow all appropriate legal procedures. Your attorney can also investigate Velocity’s claims to determine weaknesses, defense strategies, and the best way forward.
At Warren & Migliaccio, we help our clients reach case resolution in the following ways:
- Case dismissal
- Litigation defense
- Settlement negotiations
- Alternative debt resolution options, such as bankruptcy
Discuss Your Potential Legal Options With Our North Texas Debt Collection Defense Attorneys
If Velocity Investments is suing you for a defaulted debt, you do not have to face it alone. The debt defense lawyers of Warren & Migliaccio represent individuals in collection lawsuits filed by debt buyers, collection companies, and creditors. We encourage you to contact our office to discuss how we can help you.
We can review your case during a confidential consultation and help you determine your potential legal options. Call us or submit our online contact form to schedule a case review.