Consumer complaint received 2024-05-08 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Velocity Portfolio Group
State: IL

Complaint narrative:
I had an account with a loan company called XXXX ( XXXX XXXX ) that was unlawfully discharged and purportedly " sold '' to Velocity Investments , LLC. Both of these companies have acted unlawfully and unethically, and both companies ' information is necessary to understanding the whole picture. I will submit a separate complaint for each company. 

Below, I have described each company 's unlawful actions in chronological order. 

XXXX The facts are very simple. In XXXX  2022, I received an email from XXXX stating : " You are late in making your payment ( s ) and have defaulted under the terms of your XXXX promissory note. Your default consists of non-payment of the monthly loan amount of $ XXXX and late fees associated with this non-payment. If you pay the $ XXXX by XXXX/2022, you may continue with the promissory note and your account will be brought to current status. If payment is not received by XXXX/2022, we reserve the right to accelerate the loan. '' XXXX XXXX own records reflect the fact that XXXX subsequently posted a payment from me in the *exact* requested amount by no later than XX/XX/XXXX 2022 ( twelve days prior to the given deadline ). Nevertheless, my account did not return to current status, and I was not able to continue with the promissory note. Instead, on XX/XX/XXXX 2022, XXXX emailed me confirming that my account had been " sold '' to Velocity Investments , LLC, with a charge-off date of XX/XX/XXXX 2022. 

I had made numerous attempts to clarify the matter with XXXX, and XXXX refused at every turn to provide any explanation. For example, on XXXX XXXX, 2022, I sent an email to XXXX in which I pointed out that I had made the required payment prior to the required deadline, and I asked for XXXX to meet its end of the deal by returning my account to current status. 

Bizarrely, XXXX responded by saying " Please note that as of today your account is XXXX days past due and has charged off. When an account is charged off, it means the full loan balance, including interest and outstanding fees, will become due immediately. The charge-off can not be reversed. '' The XXXX day reference is a nonsensical number that bears no apparent relation to anything. In fact, this reference to XXXX days came weeks after XXXX previously claimed that my account was XXXX days past due. 

In summary, XXXX discharged my loan in direct breach of the terms of our agreement ; they did so knowingly and willfully ( as contemporaneous email records can show ) ; they refused my multiple efforts urging them to remedy their breach ( as contemporaneous email records can show ) ; they made erroneous credit reports as a result of this unlawful discharge ; and finally, they purported to unlawfully " sell '' my account to a company called Velocity Investments , LLC, as further detailed below. I have suffered enormous damages as a result of this series of events, in gross excess of any balance that any company claims I owe. 

Velocity Investments Velocity Investments purports to own the account of mine that it claims to have " bought '' from XXXX. With the aid of a law firm called XXXX XXXX XXXX, Velocity Investments has sued me in Illinois state court to recover the balance on this account, in addition to various fees. 

I have provided Velocity Investments, through their attorney at XXXX XXXX XXXX, with contemporaneous email records that prove all of the key facts stated above. In other words : Velocity Investments is completely aware of XXXX XXXX unlawful discharge and breach, as well as the unlawful nature of the " sale '' of my account. Velocity is aware that XXXX committed the material breach of the agreement -- not me -- and Velocity is fully aware that the only reason the full balance of the loan " came due '' was pursuant to this illegal breach. Nevertheless, Velocity is cynically attempting to collect this balance in full. 

For more than two months I have been attempting to discuss a possible resolution to this matter with Velocity. Astoundingly, Velocity has failed to *ever* substantively respond regarding any possible settlement with me in this matter, despite their knowledge of the fact that this lawsuit quite simply should not exist, and their knowledge of the fact that this lawsuit was made possible only by XXXX XXXX egregious breach of my agreement with XXXX. 

Indeed, despite initiating a lawsuit against me, Velocity appears to be under the impression that it need not acknowledge my existence in any way, even when I am trying to take steps to resolve Velocity 's unethical, unlawful, and opportunistic claims. In acting this way, Velocity seeks to waste precious judicial resources, while causing me additional damages needlessly and intentionally. 

Further illustrating the absurdity of Velocity 's attempt to unjustly enrich itself, the " Assignment '' clause of my agreement with XXXX states clearly that " any sale or transfer of [ my account ] does not affect my rights and duties under this [ agreement ]. '' Nevertheless, Velocity brazenly insists on attempting to profit off of XXXX XXXX breach of my agreement without accounting for the accompanying breach ( and associated damages ) in any way whatsoever. 

Indeed, XXXX and Velocity appear to believe that they have " cleverly '' found a loophole/scheme to profit off of the balance of this improperly discharged account without having to account for the fact that the account was unlawfully discharged ( and caused me enormous damages that significantly outweigh the balance ) -- XXXX profits by " selling '' the account to Velocity, ostensibly allowing XXXX to get paid and then " wash its hands '' of the situation while avoiding any accountability for its egregious and damaging breach. Then, Velocity sued me to attempt to recover the full account balance while " playing innocent '' as to the material breach that it knows was previously committed by XXXX. 

( One note : I have not attached the email records to this complaint, as the companies are already in possession of these records. If they need me to send them again, however, I will happily do so upon request. )

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