Velocity Investments LLC Is Suing Me: How to Settle

Attorney from George Mason
Patrick Austin, JD

Patrick Austin is a licensed attorney with a background in data privacy and information security law. Patrick received his law degree at George Mason University's Antonin Scalia Law School, where he served as the Editor-in-Chief for the National Security Law Journal.

Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Respond to Velocity Investments LLC's in court by filing an Answer, and check if the debt is within the statute of limitations. After you've responded, offer a settlement to resolve the dispute outside of court. Velocity will work with you to find a resolution. Use Solo to respond to a debt lawsuit and negotiate a settlement.

If you were named as a defendant in a lawsuit filed by Velocity Investments LLC, your mind is probably inundated with questions or concerns, most importantly, “What steps can I take to resolve my debt issue with Velocity Investments LLC?” Solo can help you respond to the debt collection lawsuit. The information provided below offers key insights and advice on how to effectively engage with Velocity Investments LLC and work to achieve an amicable resolution to the debt matter.

Settle debt with Velocity Investments

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What is Velocity Investments LLC?

Velocity Investments, LLC - also known as Velocity Asset Management - is a legitimate national purchaser of delinquent consumer debts. The company was formed in Wall, New Jersey in 2003. Velocity Investments LLC specializes in purchasing old debt from creditors (banks, credit card companies, etc.) and then taking steps to try and collect on the old debt. Velocity Investments usually purchases the debt for less than the original amount and then tries to collect the debt from you.

You should investigate the debt before you pay. If you don’t recognize the debt or you know it is not yours, you should ask Velocity to validate your debt. If the debt is yours you should look into settlement options. Velocity Investments is known for working with consumers on debt repayment plans and lump sum settlements. Here's everything you need to know about how to resolve a Velocity Investments lawsuit.

Respond to the lawsuit filed by Velocity Investments LLC

If you get served with a Summons and Complaint by a representative of Velocity Investments LLC, the first step is to file a written Answer with the court.

One of the most common mistakes people make when they are sued by debt collection companies like Velocity Investments LLC is failing to actually respond to the Summons and Complaint. You simply need to respond to the claims made by Velocity Investments LLC in the complaint that was filed with the Court. In legal terms, your response to the Complaint is known as an Answer.

Here are 6 handy tips to help you draft the best Answer to a debt collection lawsuit as possible. To learn more about these 6 tips, check out the video below:

The Answer isn't the place to tell your side of the story in detail: At this stage in the lawsuit, the burden of proof is not on you. This means that you don't have to elaborately explain your side of the story. In fact, doing so can actually hurt your case. Let the plaintiff (in this case, Velocity) prove their claims. All you have to do is respond to each claim listed in the Complaint.
Deny claims are incorrect or not accurate: Denying is kind of like saying, “prove it,” which requires more work and documentation on Velocity's end.
Include defenses: You should include a section in your Answer where you state your affirmative defenses. Affirmative defenses are short statements that are reasons Velocity doesn't have a case against you. For example, the debt may be past the statute of limitations, you may be sued in the wrong state or county, and you may not have received a Summons notifying you of the lawsuit. These are all common affirmative defenses that can strengthen your case.
Use standard formatting or “style”: Your Answer should be clean and professional, with standard font, font size, and formatting. It should include a caption that states the court information, parties, and case number.
Include a certificate of service: The certificate of service is a short statement at the end of a legal document that certifies the document was actually sent to the opposing party. It should include the address that was used and the manner in which it was sent. So, you should certify that you sent the Answer to the attorney representing Velocity Investments with the address listed on the Summons document.
Sign it: Almost all courts require a signature at the end of the Answer. Without an Answer, the court will most likely reject the document. Make sure to double check whether your court accepts electronic signatures or not.

Solo can help you file an Answer in all 50 states.

Contact Velocity Investments LLC at this phone number and address to settle your debt

If you’re ready to make a payment, discuss payment options, or negotiate a settlement deal with Velocity Investments, you should call the law firm or lawyer that sued you. Their name and phone number should be contained in the complaint.

You can also use SoloSettle to negotiate online and settle the debt for less.

Settle debt with Velocity Investments LLC in 5 steps

You should proactively engage with the lawyer or law firm that is representing Velocity Investments LLC in an effort to resolve the debt collection matter. Establishing a line of communication with the debt collector is a much better strategy, rather than ignoring the debt collector’s outreach.

Ready to settle your debt with Velocity Investments so you can leave your debt issues in the past and embrace a new financial future? Follow these four steps:

File an Answer to the lawsuit to avoid default judgment.
Review your budget in order to understand how much you can afford to pay Velocity
Send over your hardship information.
Send an offer to settle.
Ask for a debt settlement agreement in writing.

Let's explore each step.

Step 1: File an Answer to the Velocity Investments lawsuit to avoid default judgment

Whenever you get sued, the first and most important step to take is to respond to the lawsuit before your state's deadline. If you fail to respond in time, you might lose your opportunity to settle the debt because Velocity Investments most likely will win by default judgment. With a judgment, the debt collector’s interest in settling decreases substantially. But if you file an Answer into the case, you'll avoid the default judgment and buy yourself time to negotiate a settlement and set up a payment plan that works for you.

Step 2: Review your budget in order to understand how much you can afford to pay Velocity.

Evaluate your savings and resources (like family or friends) that could help with the payment. Use this formula to help:

Amount available to settle = (monthly income – monthly costs) + savings)

If you can do a lump sum, you should offer it to Velocity to see if they will accept it. Typically, lump sums get you the best discount/lowest balance because you are paying it all at once. If you cannot afford to do a lump sum, offer a monthly payment amount that you can afford to pay every month. Usually the longer the term, the less discount you receive from Velocity.

Step 3: Send Velocity Investments an offer to settle

The sooner you make an offer to settle, the closer you'll be to reaching an agreement. Sometimes, taking this step is the hardest part.

Once you've determined an appropriate settlement amount, send an offer to the law firm representing Velocity Investments LLC. The attorney's information should be listed in the court documents you received). Start with a lower offer than what you can truly afford in order to give yourself room to negotiate.

If you are dealing with a debt buyer — someone like Velocity Investments who bought your debt from the original creditor — then they will probably accept a settlement between 60–75% of the amount that they're suing you for..

Be prepared to receive a counteroffer, and don't get discouraged. This is totally normal, and it may take several rounds of negotiations before you reach a settlement that works for both parties. That is why we suggest starting on the low, but reasonable amount side. If your settlement is too low, there is a chance that the law firm does not even respond to your offer.

Here are some tips for negotiating a settlement offer:

If negotiating with a debt collector like Velocity Investments LLC sounds horrifying, then consider hiring an attorney or utilizing SoloSettle to negotiate online and resolve your debt through our cutting-edge digital settlement platform.

Step 4: Share your unique hardship information with Velocity Investments

Velocity is not heartless. They are willing to work with consumers, especially if the consumer has faced an unexpected financial hardship. You may need to send evidence of your hardship to Velocity's lawyers so they know how much you can actually pay to settle the debt. This evidence may include:

You account information
A hardship letter
Proof of income (e.g., pay stubs, tax returns, letter from employer)
Monthly expense list
Recent bank statements
Proof of hardship (e.g., medical bills, unemployment benefits statements, termination letter)
List of other outstanding debts
Asset information (e.g., property or vehicle values)

Sending over your financial hardship information will likely make the negotiation process easier. Just know that debt collectors aren't your enemy. They are people too and may be willing to work with you to reach a reasonable agreement.

Step 5: Ask for a settlement agreement in writing

Once you've come to a mutual agreement, ask the lawyers to send over a settlement agreement in writing. If a lawsuit has been filed against you, this document should be filed with the court and outline the settlement terms and conditions, including the settlement amount, due dates, and statements declaring the delinquent debt will be reported as settled to the credit bureaus.

You can talk about settlement with debt collectors all day, but none of it is official until you have it in writing. In general, it's best practice to have all communications with debt collectors and their lawyers recorded.

To learn more about these five steps, watch the following video where we interview a consumer rights attorney and ask how to settle debt with collectors like Velocity Investments.

Avoid default judgment if Velocity Investments LLC is suing you

Filing an Answer is so important because failing to do so will allow Velocity Investments LLC to file a motion for default judgment against you. If a default judgement is entered by the Court against you, Velocity Investments LLC will be able to garnish your wages, take money from your bank account, collect attorney's fees (in some states) and court costs, and even seize your personal property.

Another important reason to respond to the lawsuit is because many debt collection companies assume you will not file an Answer to the Summons and Complaint. This is because the vast majority of people fail to respond. As a result, when you take the time to provide a response, it actually catches many debt collectors off guard and could even create an opportunity to reach a settlement or out-of-court resolution with the debt collector.

Check the statute of limitations on your debt

As mentioned earlier, many debt collection companies assume most people will not actually respond to the collections lawsuit and they will obtain a default judgment.

Keep in mind that if the applicable statute of limitations has expired, the debt collector is legally prohibited from suing you on the debt. However, it is important to note that you must raise the statute of limitations as an affirmative defense in your Answer. In most states, a debt collector only has a finite amount of time to sue you for an alleged delinquent debt.

If it turns out that the statute of limitations expired, you can raise it as an affirmative defense that could enable you to file a motion to dismiss the lawsuit entirely.

Solo helps you make the right defense the right way.

To learn more about how to effectively respond and defend against a debt collection lawsuit, use the tools and resources available through Solo.

Request documentation to better understand the debt claim from Velocity Investments LLC

In some cases, debts may be transferred between multiple creditors or collection agencies before reaching companies like Velocity Investments LLC. To help ensure clarity and accuracy, you can ask for documentation that verifies the debt. This may include a copy of the original signed agreement and a full account history showing how the balance was calculated from the beginning to the present. Requesting this information is a helpful step toward understanding the debt and opening the door to a possible resolution or settlement.

Check out Velocity Investments LLC reviews

Prior to engaging in debt settlement negotiations, it is recommended to check out what consumers have shared about their experiences engaging with Velocity Investments LLC. Take a moment to read these real reviews of Velocity Investments LLC:

Send Velocity Investments LLC a request for validation

The Fair Debt Collection Practices Act (FDCPA) requires all debt collectors, including Velocity Investments LLC, to provide validation of a debt within 5 days of attempting to collect it. The debt validation should include these five points:

The amount of the debt.
The name of the creditor.
The collector will assume the debt is valid unless the consumer sends them a debt validation letter within 30 days.
If you send the collector a debt validation letter they will need to mail you validation of the debt.
If you send them a debt validation letter they will need to mail you the name and address of the original creditor.

When you send a debt validation letter to Velocity Investments, they must cease all collection efforts until they have officially validated the debt.

Overview of what you should do if you are sued by Velocity Investments LLC

Here is what you need to do if you receive a debt collection notice or debt collection lawsuit from Velocity Investments LLC:

Take note of any phone calls made before 8:00 A.M. or after 9:00 P.M, any phone calls made to your place of work, and any use of vulgar or inappropriate language.
File your Answer to the Summons and Complaint in a timely manner (typically within 20-30 days after being served with the lawsuit).
In your Answer, make sure to raise any legitimate affirmative defenses like the statute of limitations.
Settle your debt with Velocity Investment. Send an offer and negotiate until you reach an agreement. Get the agreement in writing, and file it with the court.
Use SoloSettle to negotiate a debt settlement that works for you.

Best of Luck!

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