Who is Velocity Investments, and why are they suing me?
You may be thinking, “Who is this company, and why are they suing me?”
Who is this company “Velocity Investments”?
Velocity Investments is a company claims to buy up old car loans, generally after repossession.
Why are they suing me?
They’re trying to get you to pay on this old debt that they claim you owe and they claim to own.
Usually, they use a very experienced law firm, the Barry Friedman law firm in Mobile, Alabama.
This firm has been in business for years, so they know what they’re doing.
If you get a letter from this firm, take it very seriously.
This firm isn’t new to this world of collection lawsuits.
They’ve been around for years, so they know how these cases work.
How is Velocity Investments breaking the law?
Velocity claims that they own this debt, however they have to prove that they own it, not merely claim they own it.
Let’s say that the dealership offers to finance your car for you when you buy a car from them.
Under the law, that’s called a “sale of a good.”
Then they immediately sell that loan to someone else, such as Citi or Cap One Auto.
After that company has had it for a while, they sell it to someone such as Santander, an infamous car loan company.
When it gets to Santander, they’ll handle it for a year or two and then there’s usually a repossession. Santander will say that you owe $20,000, they get $8,000 in the repossession, so now you owe Santander $12,000.
After Santander tries to collect on it for a while, they sell it to Cascade.
Finally, Cascade sells it to Velocity.
At least, Velocity claims that they bought the loan.
You weren’t there to witness the sale, so there’s no way for you to know if they actually own it without proof from them.
In addition to proving that they own the debt, they have to be able to trace it back to the car dealer.
Velocity Investments hates having to prove they own the loan.
Like all debt buyers, they come to court and complain, saying things like, “Judge, it’s so much work to prove it,” or “We shouldn’t have to do this,” or “This is so unfair!”
It’s odd, because when we deal with huge cases such as wrongful death cases, we don’t say, “Judge, it’s too much work to prove this. Let’s make the rules go away so we don’t have to deal with this.”
If Velocity is going to buy this loan, and be the fourth or fifth person to do so, they need to be able to prove it.
Even if Velocity Investments can prove it own the loan, the Statute of Limitations only lasts for 4 years.
Once you stop making payments, the clock starts ticking.
Usually this is before the repossession.
Velocity normally tries to sue you after the Statute of Limitations.
If they do that, then they’re supposed to lose the case.
Even if they could prove that they own the loan, which we have not seen them do, if they waited too long to sue you, that’s a great defense for you.
If they do violate the statute of limitations, then under the FDCPA, this is a violation.
You can sue them in Federal Court for doing this.
If you get one of these Velocity lawsuits, take it very seriously.
If you get a letter from Barry Friedman and they’re threatening to sue you outside of the Statute of Limitations, send them a dispute letter telling them that the Statute of Limitations has expired.
Ask them why they’re threatening to suing you, and see what they say.
Many times, they won’t respond, and sue you anyway which again normally violates the FDCPA.
Whatever the situation is, know that you have rights.
You also have 5 options.
1.) You can file bankruptcy.
I don’t recommend this option, but it’s still considered an option.
2.) You can fight it on your own.
Just make sure that you understand Alabama law, especially since your case will most likely be in Circuit Court, which is the highest court. Velocity will fight you very hard on the statute of limitations so you must be prepared for major arguments on this. Normally with a company like Velocity represented by someone as experienced as Barry Friedman, this is not a good option.
3.) You can settle it on your own.
This option doesn’t make much sense, if they’ve illegally sued you after the Statute of Limitations.
4.) You can hire us to fight it for you.
We will be happy to help you with your case against Velocity Investments.
5.) You can hire us to settle it for you.
Again, it doesn’t make much sense to settle this as normally it is better to win the case and then sue Velocity in Federal Court.
Contact us with any questions you may have.
Hope this was helpful to you.
If you live in Alabama and you have any questions about what you should do, feel free to contact us.
You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will happily get in touch with you.
I look forward to talking with you!
Have a great day.