Consumer complaint received 2024-06-14 00:00:00
Product: Debt collection — I do not know
Issue: Threatened to contact someone or share information improperly — Talked to a third-party about your debt
Company: Velocity Portfolio Group
State: MD

Complaint narrative:
On XX/XX/XXXX, I applied for a loan with XXXX XXXX and was approved in which I signed one document which was the Approval Disclosure ( see attached ). I also received other documents XXXX XXXX are required to provide during the initial sign up process, such as the XXXX Platform Agreement and Promissory Note. Included in the XXXX Platform Agreement was a section titled Mandatory Arbitration ( see attached ). It states that any dispute should be resolved by a neutral, binding arbitration, and not by a court of law. This includes any disputes between myself and XXXX, as well as any assignees, subsidiaries, respective heirs, successors, or related third parties and their affiliates. To my surprise on XX/XX/XXXX, a lawsuit was filed by Velocity Investments , LLC claiming I owe them money ( see attached ). 

Now there are a few issues with the lawsuit itself, but the first violation was XXXX XXXX selling my personal and private information to a third party that has no legitimate business need for the information ( MD XXXX, XXXX XXXX, XXXX ( XXXX ). Certain acts prohibited ). As was mentioned, an agreement was put into place between myself and XXXX XXXX that required mandatory arbitration. Instead, they sold my private information, even though I have requested arbitration to be initiated TWICE ( see attached ). Not only is this a breach of contract, but a total violation of my right to privacy. As a financial institution, XXXX XXXX was supposed to notify me that my information will be disclosed to an unaffiliated third party BEFORE the information is disclosed. Not only that, but they are also required to give the consumer an opportunity to direct that such information not be disclosed to such third party, and give an explanation as to how I could have exercised that nondisclosure option ( 15 USC 6802 ). 

As for the lawsuit itself, there are a few things that need to be pointed out. First and foremost, the Compliance Associate, XXXX XXXX, signed under penalty of perjury acknowledging that she has personal knowledge of my information being correct ( see attached ). How can someone that has never seen, nor spoken to me confirm MY information? She was not present at the time the transaction was commenced. XXXX XXXX has also signed and dated these documents with the year XXXX twice ( see attached ). On the complaint form, I see XXXX XXXX has signed as an affiant, however XXXX XXXX XXXX, an attorney for Velocity Investments , LLC, printed his name under that same title ( see attached ). 

This lawsuit also contained altered and forged documents. The first exhibit they submitted was the Promissory Note. This document was signed with an ID number, an ID number I had no idea existed. There is no way I could have signed with a number, but signed The Approval Disclosure with my actual name. Not to mention at the very bottom of this document they submitted to the court, it clearly states that it was CREATED on XX/XX/XXXX, 2 years after the commencement of the transaction. If these documents are genuine copies of the original, then there should be nothing to CREATE. I was also able to find an empty template of the Promissory Note online ( see attached ), in which Velocity Investments most likely got it from. There is an electronic record and signature disclosure, which I actually never received during the initial transaction, was created on XX/XX/XXXX. This is exactly 1 year and 3 months BEFORE I even signed up to use XXXX XXXX. How could a document be CREATED 1 year before the transaction even existed? 

So now that Velocity Investments , LLC has obtained my private information, they are now in violation of the FDCPA, such as participating in a publication of a list of consumers who allegedly refuse to pay debts ( 15 USC 1692d ( 3 ) ), the advertisement for sale of any debt to coerce payment of the debt ( 15 USC 1692d ( 4 ) ), the implication that ANY individual is an attorney ( 15 USC 1692e ( 3 ) ), the representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person ( 15 USC 1692e ( 4 ) ), the false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer ( 15 USC 1692e ( 7 ) ), the use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer ( 15 USC 1692e ( 10 ) ), the collection of any amount ( including any interest, fee, charge, or expense incidental to the principal obligation ) unless such amount is expressly authorized by the agreement creating the debt ( 15 USC 1692f ( 1 ) ). There is no agreement between myself and Velocity Investments , LLC, therefore they have absolutely no right to collect, and to state that they do have a right knowing they don't is also a violation. 15 USC 1692i ( 2 ) ( A ) states that debt collectors shall bring legal actions only in the judicial district or similar legal entity in which such consumer signed the contract sued upon. I never signed a contract agreeing to be sued. In this same section, it also states that nothing in Subchapter V of the FDCPA shall be construed to AUTHORIZE the bringing of legal actions by debt collectors.

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