Has Velocity Investments, LLC, caused your credit score to take a dive? It’s probably an old debt coming back to haunt you.
If you fail to make payments on a bill or a loan, your creditor may hire Velocity Investments, LLC, to recover payments from you.
But paying off Velocity may not help your credit score. It may even lower your score further.
The best way to deal with Velocity Investments is to deal directly with the problem: getting the negative item deleted from your credit history.
In this post, we’ll discuss ways to do this.
About Velocity Investments LLC
Velocity Investments LLC is a small collection agency with offices in Wall Township, New Jersey, east of Philadelphia.
Founded in 2002, this agency has about 10 employees and annual revenue of $1.3 million.
Like most collections agencies, Velocity gets its fair share of consumer complaints.
In the past three years, 20 people have complained to the Better Business Bureau about Velocity. Another 26 complaints have been filed with the Consumer Financial Protection Bureau.
Because it responds to most complaints, the BBB rates Velocity Investments B+.
Velocity has also been involved in 20 cases of civil litigation, which is higher than you’d expect for an agency this size.
Most complainants claim Velocity Investments, LLC, violated their consumer rights under the Fair Debt Collection Practices Act (FDCPA), which we will cover more in-depth later in this post.
If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.
How to Get Velocity Investments LLC Off Your Credit Report
You’re probably reading this post because you want to get Velocity Investments off your credit report while also stopping the phone calls, letters, and other forms of harassment you may have experienced.
Paying off the bill will stop the phone calls, but it will not fix your credit score.
In fact, paying off the bill will limit your options for getting this negative mark off your credit history.
It’ll stick around the full seven years as a “paid collection” which looks as bad as an “unpaid collection.”
I’ll share more on that now as we discuss the essential steps to removing the collection account from your credit report.
Step1: Brush Up on Your FDCPA Rights
A debt collector’s one job is to compel you to pay money on old debt. Whether it’s a lump sum or monthly payment doesn’t matter all that much. Money from you equals profits for them.
This is why they call you so often and send so many letters. Statistics show that, sooner or later, a percentage of debtors will give in and start sending money.
Some debt collection agencies want to speed up the process. They’ll get impatient and may violate your consumer rights. They may threaten to sue you, to garnish wages, or to call your employer about the debt if you don’t make a payment.
Knowing Your Consumer Rights
You may not know it, but you have rights under federal legislation designed to protect you from debt collector abuses. This law is called the Fair Debt Collection Practices Act, FDCPA.
Unless you’re aware of your consumer rights, there’s a chance they’ll be violated. Even if an agency doesn’t break the law by making outright threats, it may hint at taking illegal actions just to motivate you.
Agencies like Velocity Investments, LLC, often assume you’re not aware of your consumer rights. It’s up to you to prove them wrong by learning your rights and insisting the debt collector honors them.
The Fair Debt Collection Practices Act (FDCPA) prevents debt collectors from:
- Calling you before 8 a.m. or after 9 p.m.
- Contacting you at a time you have told them is inopportune.
- Contacting friends, family, or colleagues about your debt.
- Calling after you have requested contact only through U.S. Mail.
- Using profane or obscene language.
- Misrepresenting themselves or information about the debt.
- Reporting false information about the debt.
If you experience any of the above, you should file a complaint with the CFPB. You could be entitled to $1,000 per violation.
Step 2: Write a Debt Validation Letter
The FDCPA doesn’t just limit ways Velocity Investments, LLC, can contact you. It also requires Velocity to take certain actions when you ask for them.
For example, you are allowed to ask the agency to prove you owe it money.
This kind of request is known as debt validation, and it is one of the most powerful tools you have when dealing with a debt collector.
To request debt validation, you need to send Velocity Investments a formal request in the form of a Section 609 letter. This letter will ask the agency to provide documents proving it owns the debt and proving you are responsible for repaying it.
Velocity Investments must provide this evidence within 30 days of receiving your request. If the agency ignores your request, it violates the FDCPA.
When you get the documents about your debt, cross-reference them with your own paperwork.
Sometimes, when a debt collector buys debt or gets hired by your original creditor to help collect on the debt, it doesn’t get accurate information about those debts.
Even small details such as dates of payment and your current balance could be inaccurate. Account numbers, too.
If any detail doesn’t match up, you can file a dispute with the three major credit bureaus using the advanced dispute method.
The bureaus will look into Velocity Investments’s entry on your credit report and remove the negative information if it includes inaccuracies.
It’s possible Velocity could then fix the errors and put the derogatory mark back on your credit.
But it’s also possible the agency can’t document your debt which means you’ve succeeded in getting this collections account off your credit reports.
Here’s the thing about debt validation letters: You have to mail one within 30 days of hearing from Velocity Investments.
Otherwise, the FDCPA allows Velocity to interpret your silence as agreement that you owe the money.
Step 3: Make a Deal with Velocity Investments LLC
If you’ve missed the 30-day deadline to request debt validation — or if Velocity proves you owe the money — your best bet is to make a deal with this agency.
I recommend going for a pay-for-delete agreement. With this kind of deal, you agree to pay a certain amount of money in exchange for getting the negative item off your credit history and closing the account for good.
This deal requires a compromise from both parties:
- You get the collection account off your credit report.
- Velocity Investments, LLC, gets payment on the debt.
Both sides get something.
To kick things off, make an offer to pay Velocity Investments half the total balance due.
It is highly unlikely the agent on the phone will agree to this, but that’s OK. This is meant to be a starting point to give yourself room to negotiate.
Be flexible in your payment amount, but don’t budget on getting Velocity Investments to delete its account from your credit report. This is the entire point.
Once you find a place to meet Velocity Investments in the middle on the payment amount, draft a contract for the agency to sign. Make sure you don’t pay them a dime until you get a signature.
Velocity Investments, LLC, should contact the credit bureaus and remove their account within 30 days of receiving your payment.
Monitor your credit report at freecreditreport.com to ensure the debt collector follows through on its end of the bargain.
Ask for Help Dealing with Velocity Investments LLC
Velocity Investments, LLC, can be a tough egg to crack. You may find it difficult to remove this collection account despite your best efforts.
In this case you may want to hire a professional credit repair company.
Credit repair companies can identify damaging accounts on your credit report and negotiate deletions on your behalf.
They can help you improve your credit and prevent you from dealing with Velocity Investments altogether.
If you are interested in hiring a credit repair professional, you should check out our comparison list of the top companies.
We can help you find the best match for your credit situation.
Improving your credit takes time and patience, but it is an achievable goal for everyone.
Check out some of our other popular articles to learn more about how to boost your score.
Frequently Asked Questions About Velocity Investments, LLC
Here are some questions people often ask about Velocity and debt collection in general.
Should I hire a lawyer if I hear from Velocity Investments?
Not necessarily. You can gain the knowledge to deal with this problem yourself. Hiring an attorney may not be a cost-effective approach to removing Velocity’s collection account from your credit report.
Now, if the collection account has nothing to do with you because of inaccurate reporting and Velocity won’t remove it even after you’ve pointed out the inaccuracies, you may want to hire a lawyer and file a lawsuit.
How long will a Velocity Investments, LLC, collection account stay open?
A collection account can remain open indefinitely if you don’t deal with the problem directly. Even after the agency has stopped calling you, it can sell your debt to another collection agency, re-starting the entire process.
What is the statute of limitations on a collection account?
Statutes of limitations vary by state and by type of debt. After the statute expires you can no longer be held legally responsible for the debt, but the debt doesn’t go away; it just means you can’t be successfully sued over it.
Be careful not to inadvertently restart the statute of limitations on your debt by making a partial payment or contacting the debt collector. Don’t contact a debt collector unless you plan to close the account completely as a result of your correspondence.
Is Velocity Investments, LLC, a scam?
No. Velocity is a legitimate debt collection agency based in New Jersey. When you hear from this company, it’s because Velocity has either bought debt from one of your creditors or partnered with one of your creditors to collect an outstanding balance.
How do I contact Velocity Investments?
I recommend contacting Velocity by writing and sending your letter to 1800 State Route 34 Ste. 404A, Wall Township, NJ 07719-9147. But you can also call the company’s main phone number at 732-556-9090.
Communicating only in writing — or at least getting everything backed up in writing — protects you in the long run.
Can I make a payment online or should I send a check to Velocity Investments?
Velocity has a modern website including a ‘make a payment’ option. This is way more convenient than mailing a check or money order. But if you’re leveraging your payment to fix your credit (pay-for-delete agreement), get your agreement in writing before making a payment online.
What if Velocity violates my consumer rights?
If Velocity violates your consumer rights, tell the agent on the phone he or she is breaking the law. If the agency continues breaking the law, file a complaint with the Consumer Financial Protection Bureau.
Your state may also have consumer watchdog agencies you can consult. Check with your state attorney general’s office for options.
Can Velocity Investments garnish my wages?
Yes, this could happen. But Velocity would first have to sue you, win the lawsuit, and file a court order seeking a judge’s permission.