If you’ve received a letter or call from Velocity Investments LLC, you’re probably wondering what to do next. This company is a debt buyer that purchases old accounts from original creditors and attempts to collect on them. While this can feel overwhelming, you have rights and options. This guide will walk you through exactly how to handle debt collection by Velocity Investments LLC and protect yourself from potential violations.
What Is Velocity Investments LLC?
Velocity Investments LLC is a legitimate debt buyer based in California. The company purchases charged-off debts from credit card companies, banks, and other creditors, usually for pennies on the dollar. Once they own the debt, they try to collect the full amount plus interest and fees.
Also Read: How Much Does Collection Agency Pay for Debt? All You Need to Know
Unlike the original creditor you may have dealt with, Velocity Investments didn’t provide you with any service or product. They simply bought your account information and now want payment. This is perfectly legal, but it also means they must follow strict federal rules when contacting you.
Is Velocity Investments LLC a Legitimate Debt Buyer?
Yes, Velocity Investments LLC operates as a legitimate debt collection company. However, “legitimate” doesn’t mean they always follow the rules. Many consumers have filed Velocity Investments LLC collector complaints with federal agencies about aggressive tactics.
The company must comply with the Fair Debt Collection Practices Act (FDCPA), which sets clear boundaries on how debt collectors can contact you. If you believe they’ve crossed these boundaries, you may have legal recourse.
What to Do When Velocity Investments Contacts You
Don’t panic, and don’t ignore them. Here’s what you should do immediately:
- Don’t admit the debt is yours during the first conversation
- Ask for their contact information and write down the caller’s name
- Request written verification of the debt
- Document everything, including dates, times, and what was said
- Don’t provide bank account information over the phone
Taking these steps to respond to Velocity Investments’ collection letters gives you time to verify the debt and understand your options before making any commitments.
Your Rights Under the FDCPA
The Fair Debt Collection Practices Act gives you powerful protections. Debt collectors cannot:
- Call you before 8 a.m. or after 9 p.m. in your time zone
- Contact you at work if you’ve told them your employer prohibits it
- Use threatening, abusive, or obscene language
- Falsely claim to be attorneys or government representatives
- Threatening actions they cannot legally take
- Discuss your debt with family, friends, or coworkers
- Continue calling after you’ve requested they stop
If you think Velocity Investments has violated any of these rules, you may be able to sue Velocity Investments LLC for FDCPA violations. Successful claims can result in up to $1,000 in damages plus attorney fees.
Also Read: Stop CashNet Payday Loans Harassment
Velocity Investments LLC Debt Validation Rights
You have 30 days from first contact to request debt validation. This is one of your most important rights.
Send a written request asking for:
- The original creditor’s name and account number
- The current balance and how it was calculated
- Proof that Velocity Investments owns the debt
- A copy of the original signed agreement
- Documentation showing the debt is within the statute of limitations
Send this letter by certified mail with a return receipt requested. Once they receive your validation request, they must stop collection efforts until they provide proper documentation. This addresses the common question: Can I dispute debt with Velocity Investments LLC? Absolutely, and you should if anything seems incorrect.
How to Stop Calls from Velocity Investments LLC
If you want the calls to stop, you can send a “cease” letter. This written request tells them to stop all phone contact. Send it certified mail and keep copies.
After receiving your letter, they can only contact you to:
- Confirm they received your request
- Notify you they’re stopping collection efforts
- Inform you of specific legal action they’re taking
Keep in mind that stopping contact doesn’t erase the debt. They can still sue you, but at least you won’t face constant phone calls.
Also Read: Stop Westhill Exchange Debt Collection Harassment
Dealing with Velocity Investments LLC Phone Harassment
Repeated, excessive calls may constitute harassment. If Velocity Investments calls you multiple times per day, uses aggressive language, or contacts you after you’ve asked them to stop, document everything.
What rights you have against Velocity Investments LLC harassment include the ability to file complaints and potentially sue for damages. Keep a detailed log showing:
- Date and time of each call
- Caller’s name (if provided)
- What was said during the call
- Any threats or inappropriate language used
If you believe they’re harassing you, contact The Wood Law Firm at +1 844-638-1122 for immediate assistance. Their experienced team will guide you through stopping harassment, validating debts, and pursuing compensation for any potential violations.
Also Read: Stop Medical Data Systems Phone Harassment
Experiencing aggressive collection tactics? You don’t have to handle this alone. Call +1 844-638-1122 to speak with a consumer protection attorney who can evaluate your case for free.
How to Fight Velocity Investments Debt Collection
Fighting back doesn’t mean being difficult—it means protecting your legal rights. Here’s your action plan:
Verify the Debt First
Don’t assume the debt is accurate just because someone says you owe it. Debt buyers often purchase accounts with incomplete or incorrect information. Check your records and credit reports to confirm the debt exists and the amount matches.
Check the Statute of Limitations
Every state has a time limit for collecting old debts, typically 3-6 years. If your debt is “time-barred,” they may not be able to sue you. However, making a payment can restart this clock, so be careful.
Look for Errors
Common mistakes include wrong amounts, debts you’ve already paid, accounts belonging to someone else, or debts outside the statute of limitations. Any of these errors gives you grounds to dispute.
Consider Legal Representation
If you’re facing a lawsuit or believe your rights were violated, getting legal help against Velocity Investments LLC harassment makes sense. Consumer protection attorneys often work on contingency, meaning you pay nothing unless you win.
How to Negotiate with Velocity Investments LLC
If the debt is valid and you want to resolve it, negotiation may be your best option. Remember, Velocity Investments probably bought your debt for a fraction of what you supposedly owe. This gives you leverage.
Here’s how to approach negotiation:
Start with a Low Offer
Offer 25-40% of the total amount as a lump sum settlement. They may counter with a higher number, but you’ve established a starting point.
Get Everything in Writing
Never agree to anything over the phone without written confirmation. The agreement should clearly state the settlement amount, that it resolves the full debt, and that they’ll report it as settled to credit bureaus.
Consider a Pay-for-Delete Agreement
Ask if they’ll remove the collection account from your credit report in exchange for payment. Not all collectors agree to this, but it’s worth requesting. Get this in writing before paying anything.
Set Up a Payment Plan
If you can’t afford a lump sum, ask about monthly payments. Make sure the agreement specifies that they won’t sue you while you’re making timely payments.
Report Velocity Investments LLC to CFPB or FTC
If you believe Velocity Investments has violated your rights, filing a complaint can help. You have two main options:
Consumer Financial Protection Bureau (CFPB)
The CFPB oversees debt collectors and investigates complaints. File online at consumerfinance.gov or call 1-855-411-2372. The bureau doesn’t resolve individual disputes, but patterns of complaints can trigger investigations.
Federal Trade Commission (FTC)
The FTC enforces consumer protection laws. Report violations at reportfraud.ftc.gov or call 1-877-382-4357. Like the CFPB, they track patterns of abuse across multiple consumers.
State Attorney General
Your state’s attorney general’s office handles consumer protection issues and may be able to help with persistent problems.
Filing these complaints creates an official record that can support legal action if needed. It also helps protect other consumers from similar treatment.
When to Consider Legal Action
You may want to sue Velocity Investments LLC for FDCPA violations if they:
- Continue calling after you’ve sent a cease and desist letter
- Call you repeatedly throughout the day
- Use abusive or threatening language
- Falsely threaten legal action that they cannot take
- Contact your employer or family members about your debt
- Report false information to credit bureaus
- Attempt to collect debts that they cannot prove you owe
The FDCPA allows you to recover actual damages, up to $1,000 in statutory damages, and attorney fees. This means you might not pay anything out of pocket for legal representation.
Think your rights have been violated? Contact The Wood Law Firm at +1 844-638-1122 for a free case evaluation. Their team specializes in holding debt collectors accountable.
Protecting Your Credit During Collection
Collection accounts can seriously damage your credit score. Here’s how to minimize the impact:
Check your credit reports regularly. Get free copies from all three bureaus at annualcreditreport.com. Look for inaccuracies in the account status, balance, or dates.
Dispute errors immediately. If you find incorrect information, file disputes with the credit bureaus in writing. They must investigate within 30 days.
Document settled or paid accounts. If you pay or settle the debt, make sure the status updates to “paid” or “settled” rather than remaining as an active collection.
Understand the timeline. Collection accounts stay on your credit report for seven years from the date of first delinquency, regardless of whether you pay them. However, paid collections look better than unpaid ones to future lenders.
What Not to Do
Avoid these common mistakes when dealing with Velocity Investments LLC:
- Don’t ignore them completely. Ignoring collection attempts won’t make the debt disappear and may lead to a lawsuit.
- Don’t make partial payments without an agreement. This can restart the statute of limitations clock without actually resolving anything.
- Don’t provide post-dated checks. This gives them access to your bank account, which can lead to problems.
- Don’t admit the debt is yours. Until you’ve verified everything, avoid acknowledging ownership of the debt.
- Don’t rely on verbal promises. Always get agreements in writing before making any payments.
- Don’t let them pressure you. You have time to think, consult with an attorney, and make informed decisions.
How The Wood Law Firm Can Help
Dealing with debt collection from Velocity Investments LLC can feel overwhelming, but you have more power than you might think. By understanding your rights, validating debts, and responding strategically, you can protect yourself from potential violations and work toward a resolution that fits your situation.
Whether you choose to dispute the debt, negotiate a settlement, or fight back against harassment, taking action is better than doing nothing. And if you’re unsure about any step in the process, getting professional legal advice can make all the difference.
Remember, debt collectors must follow the law. If you believe Velocity Investments has stepped over the line, you have options. Document everything, know your rights, and don’t hesitate to seek help when you need it.
Need help handling Velocity Investments LLC? The Wood Law Firm has years of experience protecting consumers from unfair debt collection practices. Call +1 844-638-1122 today for your free consultation.
Frequently Asked Questions
1. Is Velocity Investments LLC a real debt collector or a scam?
Velocity Investments LLC is a legitimate debt-buying company based in California. However, just because they’re legitimate doesn’t mean every debt they claim is accurate or that they always follow proper procedures. Always verify any debt they claim you owe before making payments.
2. Can Velocity Investments LLC sue me for an old debt?
They can attempt to sue you, but whether they’ll win depends on several factors. If the debt is past your state’s statute of limitations, they may not be able to get a judgment. However, if you’re served with a lawsuit, never ignore it—respond within the timeframe specified or you risk a default judgment.
3. How long does Velocity Investments have to collect a debt?
This depends on your state’s statute of limitations, which typically ranges from 3-6 years. However, the debt can remain on your credit report for seven years from the date of first delinquency. These are two different timelines that people often confuse.
4. What should I do if I don’t recognize the debt Velocity Investments is trying to collect?
Request debt validation immediately. Send a written letter within 30 days of first contact asking for proof that you owe the debt, including the original creditor’s name, account number, and documentation showing they have the right to collect. Don’t make any payments until you’ve verified the debt is actually yours.
5. Can I negotiate a lower payment amount with Velocity Investments LLC?
Yes, debt buyers like Velocity Investments often accept settlement offers for less than the full amount. They typically purchase debts for 10-20 cents on the dollar, so they may accept 25-50% of the claimed balance. Always get any settlement agreement in writing before making payments.
6. Will paying Velocity Investments remove the collection from my credit report?
Not automatically. Paying a collection typically updates the status to “paid collection,” but it remains on your report for seven years from the original delinquency date. You can try negotiating a “pay-for-delete” agreement where they remove it in exchange for payment, but not all collectors agree to this.
7. What if Velocity Investments calls me at work or contacts my family?
If you’ve told them not to call you at work, or if they’re contacting family members or coworkers about your debt, they may be violating the FDCPA. Document these incidents carefully, including dates, times, and what was said. You may have grounds for legal action.
8. Can Velocity Investments garnish my wages or bank account?
Not without a court judgment first. They must sue you and win before they can garnish wages or levy bank accounts. If you’re served with a lawsuit, respond promptly and consider consulting with an attorney. Ignoring a lawsuit can result in a default judgment that allows garnishment.
9. How many times can Velocity Investments call me per day?
The FDCPA doesn’t specify an exact number, but repeated calls with the intent to annoy or harass are prohibited. If they’re calling multiple times daily, especially after you’ve asked them to stop, this may constitute harassment. Keep a detailed log of all contact attempts.
10. What’s the difference between Velocity Investments and my original creditor?
Your original creditor provided you with credit or services. Velocity Investments is a debt buyer—they purchased your charged-off account from the original creditor, usually for pennies on the dollar. They didn’t provide you with anything; they just bought the right to try to collect from you.
11. Should I communicate with Velocity Investments by phone or in writing?
Always communicate in writing when possible, especially for important matters like debt validation requests, settlement negotiations, and cease and desist letters. Send everything via certified mail with a return receipt requested. Phone conversations are hard to prove later if disputes arise.
12. What happens if I ignore Velocity Investments completely?
Ignoring them won’t make the debt disappear. They may increase collection efforts, report the debt to credit bureaus (if they haven’t already), or file a lawsuit. It’s better to take action—verify the debt, understand your rights, and decide on a strategy rather than simply hoping they’ll go away.
13. Can Velocity Investments report false information to credit bureaus?
They shouldn’t, but it happens. If you find inaccurate information on your credit reports related to a Velocity Investments account, dispute it immediately with the credit bureaus in writing. If they’re knowingly reporting false information, this may violate the Fair Credit Reporting Act, and you may have legal recourse.
