Why is Velocity Investments, LLC Suing Me in South Florida?

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If you have received a notice from Velocity Investments, LLC, you are likely very worried. You may not even know who the company is, or why they have filed a lawsuit against you. You may even think of the worst-case scenario, the company securing a judgment against you to garnish your wages or levy your bank account.

Fortunately, the chances of this happening may not be as great as you think. It is common for Velocity Investments, LLC to file a lawsuit when they have no legal grounds to do so. If you have been notified of a lawsuit filed against you by Velocity Investments, LLC, our Fort Lauderdale debt defense lawyer can provide the legal defense you need.

Who is Velocity Investments, LLC?

Velocity Investments, LLC, is a buyer of junk debt in South Florida, and throughout the country. They are located in New Jersey and have been in business since 2003. On its own website, the company claims that it uses a “comprehensive collection strategy” that attempts to convert “distressed receivables to cash.” This essentially means that Velocity Investments, LLC, mainly focuses on recovering debt from old car loans, usually after repossession has taken place.

If you have received notice of a lawsuit from Velocity Investments, LLC, it is important to take it seriously. The company is legitimate, even though it may have several complaints filed against it. If you ignore the lawsuit because you think it is not legitimate, it will greatly hurt your case.

Why is Velocity Investments, LLC Suing Me?

Velocity Investments, LLC will sue you for one of two reasons. Either you actually owe the debt, and they actually own it or, and the far more likely reason, they are trying to collect a debt that you are not responsible for.

The company will hire a very experienced legal team to represent them during the case, but even though these firms have experience, it does not automatically mean the lawsuit is legitimate. These firms are highly experienced when it comes to these debt collection lawsuits and they have been around for years. It is crucial that you have a debt defense lawyer in South Florida that is just as experienced represents you.

Is Velocity Investments, LLC Violating the Law by Suing Me?

The answer to that depends on the facts of your case, but it is very common for Velocity Investments, LLC, and other debt collectors like them, to try and collect on a debt that they do not own. In the case of Velocity Investments, LLC specifically, the debt will likely change many hands before it lands in the hands of the company.

For example, you purchase a car from a dealership and they offer to finance it for you. This is known as a “sale of a good” under the law. The dealership will sell that debt to another company, such as Cap One Auto or Citi. Once this second company has owned the debt for some time, it will then sell it to another company, such as Santander, one of the biggest car loan companies in the country. Santander will likely keep the debt for one or two years, and then repossess the vehicle if it is still left unpaid.

Once the repossession happens, you will still owe the remaining balance of the debt. The value of vehicles depreciates quite quickly. If you originally owed $20,000, and Santander recovered $8,000 of that value through the repossession, they will then argue that you owe the remaining $12,000. Santander will try to collect on this debt for some time but once they stop trying, they will sell it to Cascade, and then Cascade will sell it to Velocity Investments, LLC.

It is at this point that Velocity Investments, LLC will try to come after you for the debt. They will tell you that they now own the debt, but that is often not true. You have no way of knowing whether that is the truth or not, until Velocity Investments, LLC can prove they do. You would be surprised to learn how often they are unable to do that. Even more, not only does Velocity Investments, LLC have to prove that it owns the debt, but they also have to be able to trace the sale of the debt back to the original car dealership.

It is critical to Respond to the Lawsuit

There is a very good chance that Velocity Investments, LLC cannot prove they own the debt, or that you actually owe it. They are hoping that you will ignore the lawsuit. If you do, they can take the matter to court and secure a default judgment against you. At that point, they can start to garnish your wages and take other measures to collect on the debt. If you respond to the lawsuit though, you can defend it and raise the argument that you do not owe the debt, or that the company does not own it.

The Statute of Limitations May Have Passed

Another common tactic Velocity Investments, LLC often uses is to try and collect on debt when they have no legal right to do so. They often do this by filing a lawsuit against you after the statute of limitations has passed. This is the time limit for filing a debt collection lawsuit and in South Florida, that time limit is four years from the date of your last payment. If Velocity Investments, LLC does not file its lawsuit within this time, they have no legal right to try and collect on the debt.

Our Debt Defense Lawyers in South Florida Can Advise on Your Case

If you have received notification of a lawsuit filed against you by Velocity Investments, LLC, do not ignore it. At Loan Lawyers, our South Florida debt defense attorneys know how to defend against these lawsuits to help secure your financial future. Call us today at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how we can help.