How To Deal With Velocity Investments Debt Collection in 2024
Velocity Investments LLC is a legitimate debt collector that works on behalf of creditors and buys old debts. Always request debt validation in writing before paying anything. You can often negotiate to settle for 40-60% of the original amount, saving thousands on what you owe.
Get Lower PaymentsVelocity Investments LLC collects consumer debts for other companies. They also buy old debts directly. If they contact you, don’t panic. You have rights and options.
Understanding how to respond can save you money and stress. You might not owe what they claim. You might not owe anything at all.
Negotiate Lower Payments with Velocity Investments
Stop struggling with Velocity Investments alone. Professional negotiators can reduce your debt by 40-60% and create an affordable payment plan. Get your free consultation today.
Reduce My Debt NowWhat Is Velocity Investments?
Velocity Investments LLC operates from Wall Township, New Jersey. The company also goes by Velocity Recoveries and Velocity Portfolio Group.
Velocity works with original creditors and debt buyers to collect past-due debts. They also purchase charged-off debts directly from creditors.
Original creditors like hospitals and credit card companies eventually sell old debts. Collection agencies are better equipped to recover these debts. When a debt gets sold, you’ll pay the debt collector instead of the original creditor.
Why Is Velocity Investments Contacting Me?
Velocity calls or writes when they’re trying to collect money. They may be working on behalf of an original creditor. They might also own the debt themselves after purchasing it.
Is Velocity Investments Legit?
Yes, Velocity Investments is a legitimate debt collection business. But legitimacy doesn’t mean they’re perfect.
The Better Business Bureau accredits them, but their customer rating is only 1 out of 5 stars. Customers have filed more than 140 complaints in three years.
The Consumer Financial Protection Bureau lists over 800 complaints for “Velocity Portfolio Group.” Many complaints allege Velocity can’t verify debts or doesn’t respond to consumer requests.
Other complaints claim threatening statements and attempts to collect debts not owed. If true, these actions violate the Fair Debt Collection Practices Act (FDCPA).
The FDCPA protects consumer rights by prohibiting harassment and misleading practices. You can file a complaint or sue for compensation if a collector violates this law.
How Do I Know if I’m Being Scammed?
Velocity Investments is real, but scammers can impersonate them. Scammers try to trick you into sharing personal information or sending money.
Protect yourself by learning debt collection scam red flags. Always get a debt validation letter before sharing details or paying.
Do I Have To Pay Velocity Investments?
You might have to pay if they confirm the debt is yours. They must prove they own it and the amount is correct.
Debt collectors contact as many people as possible, so mistakes happen. Accounts get transferred multiple times and information gets mixed up.
Ask Velocity Investments to validate the debt before paying. If they can’t validate it, you don’t have to pay. They’ll also have to stop contacting you.
Step 1: Send a Debt Verification Letter
Velocity Investments should send you a debt validation letter before or during initial contact. They have five days from first contact to send it.
If you got the letter but want more details, send them a debt verification letter.
You have 30 days after receiving the validation letter to dispute the debt. If you dispute it, Velocity must pause collection efforts until resolving the dispute.
If Velocity can’t validate the debt, you don’t owe them. Still check your credit report for any errors.
If they validate the debt, you’ll need to decide your next steps.
Step 2: Decide What To Do Next
After Velocity verifies the debt, you have three choices. You can dispute the debt, negotiate a settlement, or ignore it.
Ignoring the debt is not recommended and will make things worse.
Option 1: Dispute the Debt
If you disagree that you owe the debt or the amount is wrong, you can dispute it.
Check your credit report for errors too. The Fair Credit Reporting Act gives you the right to dispute credit reporting errors.
You can request corrections by mailing a 609 letter to the three major credit bureaus. Target Equifax, Experian, and TransUnion as needed.
Option 2: Negotiate the Debt and Make a Settlement Offer
Paying the full debt is simplest, but not realistic for everyone. What if you could reduce the debt by one-third or half?
Many consumers don’t know debt collectors often settle for 40% to 60% of the original amount. They agree because they buy old debts for pennies on the dollar.
Even if they collect half your debt, they still make a profit.
Start your negotiation low. Offer to pay 25% or 30% of the debt’s amount. Don’t be surprised if Velocity rejects this initial offer.
Keep negotiating. They might agree on 50% to 60%. You can pay as a lump sum or through monthly installments.
Professional help can make this process easier. Our partner Cambridge Credit Counseling can negotiate on your behalf and potentially reduce your payments.
Can You Negotiate Every Past-Due Debt?
You can negotiate most consumer debts. Personal loans, medical bills, and credit card debt are all negotiable.
You can negotiate past-due federal tax debts through IRS special programs. But not all past-due consumer debts are negotiable.
Car loans and home mortgages are debts with collateral. Creditors can repossess the car or foreclose on the home if you default. They have little incentive to settle for less.
Federal student loans are also not normally negotiable. However, student loan forgiveness programs might help.
Option 3: Ignore the Debt (Not Recommended)
Ignoring a debt or the debt collector will make things worse. You’ll add more anxiety and stress to your life.
What Happens if I Ignore Velocity Investments?
Ignoring a debt is never a good long-term solution. Debts can fall off your credit report after seven years. But debt collectors can still contact you to collect.
Ignoring the debt can lead to negative consequences:
- A lower credit score
- A bigger debt due to fees, interest, and legal costs
- Continued contact from a debt collection company that won’t give up
- Potential legal action and default judgment resulting in a wage garnishment order
Responding to a debt collector seems intimidating. But you now have the advantage of knowing your options.
Does Velocity Investments Sue?
Yes, sometimes Velocity Investments sues consumers to collect debts. But lawsuits don’t happen often for two main reasons.
First, Velocity Investments typically works with debt collectors and creditors outside of court. They prefer to avoid litigation.
Second, Velocity focuses more on providing legal consulting solutions to clients. They provide legal advice on whether to sue. Should legal action be needed, Velocity partners with debt collection law firms nationwide.
Velocity is more likely to act as a litigation consultant than sue consumers directly.
What influences a debt collector’s decision to sue? They’ll usually consider:
- How many other debts you have
- The age and size of the debt
- Whether the statute of limitations prohibits legal action
- How much money they could win, including interest, legal fees, and wage garnishment potential
If Velocity Investments decides to sue you, they’ll serve you with a complaint and summons. You must file a timely response to avoid losing by default.
Getting professional guidance on debt collection lawsuits is crucial. Our partner Solo can help you draft a proper response and negotiate settlements.