Velocity Investments LLC is listed on your credit report, or maybe you see it under the name Velocity Recoveries. What is this company, why is it negatively affecting your credit, and what can you do?
Velocity Investments LLC is also called Velocity Recoveries, and it’s an account receivables company, meaning it’s a debt collector working on a third-party basis for other companies. Original creditors and service collectors contract third-party debt collectors to outsource their collections.
A company might want a third party to manage collections for them if they don’t have the resources to do it internally, no longer think they’ll be able to collect or need a company that can take further legal action.
Third-party debt collectors often get the wrong information from original creditors, or they do skip tracing. Skip tracing is when a debt collector uses databases and identity verification processes to try and find someone who owes money to an original creditor as part of the collections process.
Unfortunately, in doing so, debt collection agencies often make mistakes. For example, if you have a similar name to someone else who does owe a debt, Velocity Investments might get you confused and start to call you.
You could also find that wrong information is reported on your credit with Experian, Transunion, Equifax, or all three.
Whenever you start to hear from a debt collector like Velocity Investments, or they’re reporting to credit bureaus, don’t assume it’s legitimate, and you owe them money. A consumer protection attorney can help sort out the situation on your behalf and determine whether a debt is valid and if you owe it.
Often a consumer will think the easiest options are to ignore the debt collector or pay for it and hope they delete the negative information from their credit report. Neither are the best options, at least not without consulting with an attorney.
If you get calls, letters, emails, or any other type of contact from Velocity Investments, it’s most likely because they believe you owe a debt.
When debt collectors call you, whether the debt is valid or not, they’re limited in how they can interact with you and what actions they can take because of the Fair Debt Collection Practices Act. The FDCPA was enacted to protect consumers from abusive or harassing behaviors by debt collectors. It outlines specific things debt collectors can’t do, including misrepresenting who they are and why they’re calling you.
Debt collectors have to avoid calling multiple times in a row or continuously, and they can’t call you before 8 a.m. or after 9 p.m.
If a debt collector uses profanity, lies about who they are to scare you into paying, or takes similar unethical actions, they violate the FDCPA.
Velocity Investments collects for businesses in varying industries, including utility companies and hospitals.
If you start to hear from Velocity Investments, being proactive and talking to a consumer protection attorney as soon as possible can avoid further consequences. Debt collectors can sue you for a legitimate debt, but that does mean they have to prove that the debt is yours and that you owe it.
For a debt collector to sue you, along with proving you’re responsible for the debt, they have to show they own the debt and have the right to collect it.
The statute of limitations can’t have expired either. Debt collectors are required to notify you before they can take legal action. If a debt collector sues someone for a valid debt and wins a judgment against the person, they garnish wages or take money directly out of their bank account.
While the debt Velocity Investments (Velocity Services) is contacting you about may not be legitimate, the company is. Velocity Investments was founded in 2003 and is based in New Jersey.
Despite being a legitimate company and not a scam, there are numerous negative reviews against Velocity Investments. Many people say the company bought very old debts, well beyond the statute of limitations, and now are trying to collect on them or that they never received any notice from the company before they reported a collections account on their credit.
Other complaints allege the company was rude to them when they tried to contact them or even hung up.
These complaints highlight the importance of communicating with debt collectors through an attorney who will protect your rights.
There are many reasons why you might want to dispute a debt with Velocity Investments. The debt could be old or expired and still listed on your credit report as new.
The debt might belong to someone else altogether, or some part of it could be wrong, like the balance or your payment dates. It could be that you want to dispute a debt as invalid because the company never provided you with information about the original creditor.
Regardless of the specifics, a consumer protection attorney can submit a dispute to Velocity Investments on your behalf. When a dispute is submitted because of the Fair Credit Reporting Act, the company must investigate, report its findings, and update information with credit bureaus as needed.
If you don’t dispute a debt and it stays on your credit report, it can remain there for seven years. The company can potentially take legal action, and regardless, it will keep affecting your credit score. Your history of making payments on-time accounts for around 35% of your credit score, so a collections account can be financially devastating.
With a collections account on your credit, you might be unable to open new accounts or even rent a home.
At Fair Credit, we’re consumer protection attorneys who take your FCRA rights seriously. Regardless of your situation with Velocity Investments, we may be able to help and get them off your credit. Contact us to learn more and start with a free case review.