Velocity Investments LLC: How to Deal with Collection Calls

Velocity Investments LLC is a small debt collection agency. They handle debt collection for original creditors, third-party debt buyers, and also buy debt. They offer debt collection services to banks, financial institutions hospitals, utility companies, and other owners and originators of consumer receivables.

Just like dealing with any debt collector, be prepared. Verify that you owe the debt, that the company does not harass you, and that you have the right tools to settle your debt.

What is Velocity Investement LLC? Are they real or a scam?

Velocity Investments LLC is not a scam. It is a real debt collection agency. Velocity Investments LLC is located in Wall, New Jersey, and has about 11 employees. They offer services in all 50 states. 

They serve original creditors, third-party debt owners, and also buy debt. Velocity helps its clients recover debts in all phases of the debt collection process including pre-litigation collection accounts, lawsuits, and bankruptcy recovery. They partner with more than sixty collection law firms across all fifty states.

Velocity Investments LLC is also known as Velocity Portfolio.

Do you owe Velocity Investements LLC?

Velocity Investments LLC services debt from many creditors. They also buy debt for pennies on the dollar. They may appear on your credit report along with the original debt owner or a third-party debt buyer.

However, there are various reasons that you may not owe them or their client money. For example, the debt may not belong to you, the statute of limitations expired, or you already paid off the debt.

Step 1 - Validate your debt.

The first thing that you need to do when contacted by Velocity Investments LLC is to validate the debt.  After the initial contact, either by mail or phone, you have 30 days to validate the debt, so act quickly. It is advisable to send a registered letter. Validate the debt even if you are not sure if you are responsible for it.

According to the law, Velocity must validate the debt. If you don’t receive proper validation, then send a notice of insufficient validations. If they cannot validate the debt, it has no legal basis to collect it.

>>Learn more: Follow the steps described in the Bills.com debt validation article to preserve your rights under the FDCPA.

Step 2 - Check to see if the Statute of Limitations (SOL) is valid.

Debt collectors have a limited time to sue you and get a judgment. SOL laws set the amount of time a creditor can sue and collect on the debt. A third-party collection agency like Velocity Investements LLC cannot sue after the SOL expires in most states. However, check to see if they are collecting for a third-party debt buyer or the original creditors (first-party creditors). 

Statute of limitations laws vary by state and type of debt or contract. The creditor may have a different opinion on the expiration date due to re-aging a debt or the relevant state law that applies. It is always wise to respond to a lawsuit.

In any case, Velocity still has the right to contact and get you to negotiate a settlement.

>> Learn more: Learn more about states' laws regarding statute of limitations.

Stop Velocity Investments LLC from debt collection harassment.

Debt collectors often are extremely aggressive in their collection tactics.  The Fair Debt Collection Practices Act (FDCPA) strictly regulates debt collection agencies.

Here are some of the actions that they are forbidden to do:

• Seek Unjustifiable Amounts
• Use the Telephone to Annoy or Harass
• Use Abusive or Threatening Language
• Contact a relative, friend, or colleague who doesn’t own the debt
• Threaten Arrest
• Call at an unreasonable time such as before 8:00 AM or after 9:00 PM
• Contact a Consumer at Work

Consult with a consumer rights attorney if you believe that Velocity violates your rights under the FDCPA. Discuss possibly filing a lawsuit against the collection agency; not only could a lawsuit result in the cancellation of your debt, but you could be awarded damages.

Learn how to negotiate your debt with Velocity Investments LLC

Velocity Investements LLC will contact you, hoping to collect the debt. They collect on debts from early delinquency, charge-off status, and bankruptcy. When serving creditors with debt in an early stage, they are interested in closing the account quickly.

They are interested in getting you to make a full payment or set up a payment plan and negotiate settlements. According to their website, 

"We are focused on working with consumers to find satisfactory resolutions to their outstanding debts.

Your first option is to negotiate directly with Velocity. It is stressful and time-consuming. It takes a significant amount of time and effort. To receive a good settlement, it is helpful to convince Velocity that you are in a hardship. Here are three tips: Be calm, clear, and convincing. Be persistent. Send a debt negotiation letter.

It is also possible to seek a negotiated settlement with a professional debt negotiation company. Debt settlement companies rely on databases of past settlements, so their negotiators know what range original creditors and collection agencies have accepted for payments in the past. They can reach a negotiated settlement with your debt collection agency quickly.

Complaints and lawsuits about Velocity Investments LLC

Like most collection agencies, Velocity has complaints registered in the BBB and the Consumer Finance Protection Bureau (CFPB). The CFPB has complaints about collecting a debt that the consumer didn’t owe, harassment and impersonating an attorney, law enforcement, or government official. The complaints themselves are not proof of illegal or improper activities but provide examples of problems consumers had with collection agencies.

Here is a couple of example of complaints:

Attempts to collect debt not owed -  Debt was result of identity theft "I was never notified of this debt, per 15 USC 1692 I was to be notified within 5 days. Per 15 USC 1692gf, unfair practices. No information given regarding debt. FTC Report filed and other reports filed. Unknown debt over 3 months now and no information given. Not sure who this company is and how I even owe them or ever entered into contract".

False statements or representation - Attempted to collect wrong amount "Velocity investment LLC trying to collect on a wrong debt. The debt is suppose to be {$8200.00} and they are reporting on {$13000.00} and I wrote them letters for deletion! They failed to do so.

Deal with a Velocity Investments LLC lawsuit

Velocity Investments LLC actively pursues lawsuits. They partner with law firms across the United States. 

Velocity can contact you, but they are forbidden to make empty threats to sue you when making a collection call. If the statute of limitations is valid,  they have the right to start a lawsuit and pursue legal remedies such as a wage garnishment or bank levy.

If it files a lawsuit against you, consult with a lawyer in your state with consumer law experience. You must file an answer to their summons and complaint or risk losing the lawsuit by default. Ignoring a summons will not make it go away, so take action to respond to the lawsuit.

Can you remove Velocity Investments LLC from your credit report?

Yes, you can remove mistaken and inaccurate items from your credit report. 

However, accurate negative tradelines stay on your credit report for seven years from the delinquency date. Bankruptcies remain for ten years, and judgments can remain for even longer if the creditor renews them.

If you notice an inaccurate item from Velocity or a company associated with it, file a dispute with the Credit Reporting Agencies and have the negative items removed from your credit report.

>> Learn more: Learn how to dispute a credit report.