“Global Collection Agency is trying to collect a Velocity Investments, LLC debt that was last paid on in 2007. Can they do this?”
Ultimately, this boils down to a statute of limitation issue, and the FDCPA, or Fair Debt Collection Practices Act.
A brief overview of Velocity Investments, LLC.
Velocity Investments usually collects on old car loans in Alabama.
Most of the car loans that Velocity collects have a 4 year statute of limitations.
In this case, since the last payment was in 2007, Velocity should have sued you by 2011.
Velocity collects old credit card debt sometimes, as well.
Their best case is that they have 6 years to sue on old credit card debt, but it may actually be 3 years.
However, they really should have sued in 2013, not 2017.
Even though it’s too late for them to sue, they may be trying to get you to make the smallest payment on the debt.
These guys will argue that they can sue you if you make a payment on the debt, because the statute of limitations would supposedly restart.
For you, this means that you should be extremely careful when these guys are contacting you.
Rarely, though, is it legal for them to do this.
Honestly, they should notify you that they may sue you if you make a payment to them.
They don’t do that, though, which is very deceptive.
They should be punished for breaking the law when they aren’t up front about what they’re doing.
When they break the law, we can use the FDCPA to stop this illegal behavior.
If you have any questions…
We’d love to help you in any way we can.
You can give us a call at 1-205-879-2447.
Or, if you prefer, you can fill out a contact form and we will get in touch with you.
We look forward to chatting with you.
Thanks for reading, and have a great day!