Consumer complaint received 2025-10-10 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: Velocity Portfolio Group
State: NJ

Complaint narrative:
Velocity Investments LLC is reporting a debt to credit bureaus that was DISCHARGED IN XXXX  XXXX BANKRUPTCY, violating federal bankruptcy law and credit reporting requirements. 

BACKGROUND : I obtained a personal loan from XXXX XXXX XXXX in XX/XX/XXXX. I experienced financial hardship and the account charged off in late XXXX. According to XXXX, they sold this debt to Velocity Investments LLC on XX/XX/XXXX. 

In XX/XX/XXXX, I filed XXXX XXXX bankruptcy and this debt was included in my bankruptcy schedules. In XX/XX/XXXX, I received a full discharge of all qualifying debts, including this one. 

THE VIOLATION : Despite the bankruptcy discharge, my credit report shows this account is STILL being reported as : Status : " Charge Off '' XXXX Status : " Sold To VELOCITY INVESTMENTS LLC '' Last Reported : XX/XX/XXXX Balance : {$0.00} NO mention of bankruptcy discharge I NEVER HEARD FROM VELOCITY : This is the first time I am learning that Velocity owns this debt. I received : No collection letters or calls No communication whatsoever Yet they are reporting this discharged debt to credit bureaus as a collectible charge-off.

LEGAL VIOLATIONS : 11 U.S.C. 524 - Reporting a discharged debt as collectible violates the bankruptcy discharge injunction Fair Credit Reporting Act - Misrepresenting the status of a legally eliminated debt Fair Debt Collection Practices Act - Falsely representing the legal status of a debt EVIDENCE I HAVE : Official bankruptcy discharge order from federal court ( XX/XX/XXXX ) Bankruptcy schedules listing this specific debt Credit reports showing continued " Charge Off '' status with no bankruptcy notation Email from XXXX  confirming they sold debt to Velocity on XX/XX/XXXX WHAT MAKES THIS EGREGIOUS : Velocity purchased this debt in XX/XX/XXXX I filed bankruptcy in XX/XX/XXXX XXXX XXXX months later ) The debt was discharged in XX/XX/XXXX Velocity is STILL reporting it incorrectly as of XX/XX/XXXX They never notified me they owned the debt They never updated their reporting after the discharge IMPACT ON ME : Damages my credit score and creditworthiness Misrepresents my legal obligations to potential creditors Causes significant emotional distress Violates my fresh start guaranteed by bankruptcy law XXXX XXXX  ROLE AND DEFLECTION : I also filed a complaint against the original creditor, XXXX XXXX XXXX, regarding their inaccurate credit reporting of this discharged debt. 
XXXX responded by claiming they sold this debt to Velocity Investments XXXX on XX/XX/XXXX, and " ceased reporting '' in XX/XX/XXXX. They stated it was no longer their responsibility. 

However, this response was misleading : My credit report shows this account was last updated XX/XX/XXXX - nearly XXXX years after XXXX claims they stopped reporting Whether XXXX  or Velocity is currently reporting, the account still shows " Charge Off '' with no bankruptcy notation XXXX sold this debt to Velocity, but the bankruptcy discharge applies REGARDLESS of who owns the debt. Both companies have a legal obligation to ensure accurate credit reporting that reflects the bankruptcy discharge. 

I am including XXXX in this complaint because : They sold the debt to Velocity and may have ongoing reporting obligations They failed to ensure their debt buyer reports accurately after the discharge They attempted to deflect responsibility rather than resolve the legal violation Someone is still reporting this incorrectly as of XX/XX/XXXX Both companies must be held accountable for violating my bankruptcy discharge through inaccurate credit reporting.

Company response to consumer: Closed with explanation