If you have been sued by Velocity Investments LLC in New York, you are not alone. This company regularly files debt collection lawsuits in New York courts, often seeking to collect on old credit card, personal loan, or other consumer debts. Lawsuits from debt buyers like Velocity can feel devastating, but you do have rights and defenses under both New York and federal law. By understanding who Velocity is, what their business model looks like, and what legal protections are available to you, you can take steps to protect yourself and your finances.
Who Is Velocity Investments LLC?
Velocity Investments LLC is a debt buyer. That means they purchase charged-off consumer debt—usually credit cards, personal loans, or other accounts—from original creditors or lenders. Once an account is sold, Velocity becomes the new owner of the debt and has the right to collect on it. They often work with law firms or collection agencies to contact consumers, demand payment, and sometimes file lawsuits.
Velocity has purchased debt portfolios originating from lenders such as Cross River Bank and Upstart Network. These accounts are usually sold for a fraction of the balance owed. Velocity then attempts to collect the full amount, sometimes adding fees and interest. Because they are not the original creditor, consumers have the right to demand proof of ownership and accurate account records.
Why You Might Be Sued By Velocity Investments
When Velocity Investments purchases a debt, they may choose to file a lawsuit if voluntary collection attempts fail. If you receive a Summons and Complaint, it means they are formally suing you in a New York court for the balance. The lawsuit will typically allege that you entered into a credit agreement, defaulted, and now owe the balance plus interest and costs.
If you do not respond to the lawsuit in time, the court may enter a default judgment against you. Under CPLR § 3215, a default judgment gives Velocity powerful collection tools such as wage garnishment, bank account levies, and liens against your property.
Up to 10% of your gross wages or 25% of your disposable income may be taken directly from your paycheck under CPLR § 5231.
Money in your bank account can be frozen and seized, with some exemptions for protected funds under CPLR § 5222.
A judgment can become a lien on real estate you own in New York under CPLR § 5203.
These actions can have serious long-term effects on your financial stability. That’s why responding to a lawsuit and asserting your defenses is crucial.
Legal Defenses Against Velocity Investments
Even if you owe money, you may have valid defenses against a lawsuit brought by Velocity Investments. Debt buyers often lack the documentation needed to prove their case in court. Some potential defenses include:
Lack of Standing
Velocity must prove they legally own your debt. This requires producing a chain of assignment from the original creditor to them. Without proper paperwork, they cannot enforce the debt in court.
Statute of Limitations
In New York, the statute of limitations on most consumer debts, including credit card accounts, is six years under CPLR § 213. In April 2022, New York passed the Consumer Credit Fairness Act, which shortened the statute of limitations for most consumer debt cases from six years to three years. Whether your case is subject to the three-year or six-year limit depends on when the cause of action accrued.
Improper Service
Debt collection cases sometimes fail because the consumer was not properly served with court papers. If you never received the Summons and Complaint in the correct legal manner under CPLR § 308, you may be able to have a judgment vacated.
Incorrect Balance
Debt buyers sometimes sue for incorrect amounts, adding fees and interest not permitted by the original agreement. They must prove the exact balance owed, and discrepancies can be challenged.
Identity Theft or Fraud
If you were the victim of identity theft or never opened the account in question, you should raise this as a defense immediately.
The Risks of Ignoring a Velocity Investments Lawsuit
Failing to respond to a lawsuit is one of the biggest mistakes consumers make. If you ignore the case, Velocity can easily win a default judgment. Once they have that judgment, they can pursue aggressive collection actions for years. Under New York law, judgments are valid for 20 years (CPLR § 211), giving them plenty of time to pursue collection.
Even if you believe you owe the debt, ignoring the lawsuit only gives Velocity more power. By responding in court and seeking legal representation, you protect your rights and open the door to possible defenses or negotiation.
How Our Firm Helps Consumers
At Law Office of Simon Goldenberg, PLLC, we help New Yorkers fight lawsuits brought by debt buyers like Velocity Investments. We understand how stressful these cases can be, and we provide legal strategies tailored to your circumstances.
We negotiate settlements for a reduced balance, often far less than the amount demanded. We also work out interest-free payment plans so you can resolve your debt without adding more financial burden. And where defenses exist, we raise them in court—sometimes getting cases dismissed entirely.
We also hold debt collectors accountable. The Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692, prohibits abusive, deceptive, or unfair collection practices. If Velocity or their lawyers violate these rules, we may pursue remedies on your behalf.
New York Consumer Protection Lawyer
Debt lawsuits are not simple. They involve strict deadlines, complicated evidence rules, and potential consequences that can affect your income, bank accounts, and property for decades. Having an experienced New York consumer protection lawyer ensures that you understand your rights and that someone is advocating for your best interests.
Whether your defense is based on the statute of limitations, lack of proof, or simply negotiating the best possible settlement, a lawyer can guide you through the process and protect you from default judgments.
If you have been sued by Velocity Investments LLC in New York, do not wait to take action. The sooner you respond, the more options you have. At Law Office of Simon Goldenberg, PLLC, our attorneys fight aggressively for consumers just like you. We know how to challenge debt buyers, negotiate reduced settlements, and protect you from unfair collection practices.
To discuss your case and learn more about your legal rights, contact Law Office of Simon Goldenberg, PLLC by calling (888) 301-0584 or contacting us online for a free consultation.