Consumer complaint received 2021-12-16
Company: Velocity Portfolio Group
State: GA
Product: Debt collection
Sub-product: Other debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Sued you without properly notifying you of lawsuit

Complaint:
In XXXX of 2021 I was sued by XXXXXXXX XXXX XXXXXXXX XXXX, a branch of Velocity Investments. Velocity Investments bought debt I incurred with XXXX XXXX. Immediately upon receiving the summons, I contacted XXXXXXXX XXXX XXXXXXXX and explained to them I was a stay at home mom and that my current husband ( who was the sole breadwinner for the family ) and I were in the process of divorcing. Because we'd only been married for 3 years and he was not the father of my XXXX daughters, he was not required to pay alimony or child support. I was receiving child support from my children 's father, but it was not enough to maintain a mortgage and all other necessary living expenses. I had to choose whether to house and feed my children, or pay credit cards or other debts, and obviously my children come first. The representative at XXXXXXXX XXXX XXXXXXXX demanded that I pay the full past due amount immediately. I explained to the representative that it was impossible to pay the {$2100.00} balance in full but that I would absolutely make payments on the debt. The representative suggested a monthly payment amount ( I can't remember the exact amount ), but it was in the hundreds of dollars and I knew that I could not manage that much each month. At the time, I said I could pay {$50.00} a month. The representative said that he would have to consult with management and he would get back to me. This was the XXXX week of XXXX. After a couple of weeks and no communication from XXXX XXXX XXXXXXXX, I reached out to them in XXXX. Again, they demanded full payment and again, I told them that I could make payments. The representative said that he had to speak with his supervisor and he'd get back to me. 

Yesterday ( XX/XX/XXXX ), I was going through old paperwork and found the civil summons from XXXXXXXX XXXX XXXXXXXX that I received in XXXX and it suddenly struck me that I never heard back from them. I called them immediately, and I was informed that they had filed a judgment on XX/XX/XXXX to garnish 25 % of my wages. I was and am absolutely shocked and sickened, because I earn {$17000.00} a year. I'm a single parent and I have a daughter with XXXX XXXX. I could not believe that they did not reach out to me before trying to garnish my wages. The representative then stated that I should have called them. I told him that I was a single working mother and that I have an XXXX  child and I'm struggling just to survive day to day and that I forgot about the issue because it just totally slipped my mind. I again said that I could make payments. The representative said that unless I paid the balance in full the garnishment would proceed. I told him that I don't even earn {$2100.00} a month, much less have disposable funds sitting around. He repeated that my wages would be garnished. I explained to him that I earn {$1700.00} a month, that I'm a single mom, and that I'm raising a XXXX XXXX  child ; I get paid once a month, and 25 % of my income is about {$400.00} a month. The representative repeated that the garnishment was moving forward regardless of my situation. 

I have never denied that I am responsible for this debt, and I have never attempted to avoid any communication from XXXXXXXX XXXX XXXX. In the past year I have in fact negotiated lower settlement amounts associated with 2 other past due accounts that were represented by XXXX XXXX XXXX. I have since paid these negotiated balances in full, and they are reflected as such to the credit bureaus. I am fighting tooth and nail to repair my damaged credit score ... bad credit creates a vicious cycle of paying outrageous interest rates that in turn decrease earnings ; earnings that could be put towards bills or put into savings. I had a great experience and relationship with XXXX XXXX and I have the letters verifying that I paid these settled debts in full. XXXX XXXX XXXX XXXX business practices may not be illegal but are certainly immoral and deceiving. I don't even care that they were insulting and rude and spoke to me as if I were XXXX, but the way they conduct business is just wrong. 
I have been more than willing to make payments on my debt and I have made that clear to them numerous times. I believe that XXXX XXXX  XXXX intentionally neglected to follow-up with my offer to make payments on my debt in order to proceed with a wage garnishment. That is just wrong. I am just trying to do the right thing. I did the right thing through XXXX XXXX XXXX and now those debts are paid in full. I can not support my girls if my wages are garnished and I am desperate for any help or guidance you can give me. Thank you so much for your interest and your time.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation