When Velocity Investments Is On Your Credit Report
Navigating the journey towards financial stability can be tough, and even more so with negative marks on your credit report. Collections accounts, like those from Velocity Investments LLC, on your credit report can make it hard to make major financial purchases or secure a loan. If you’re facing this situation we’ll provide a clear roadmap for you to delete Velocity Investments from your credit report in 3 simple steps. Once you have this knowledge, you will be ready to take charge of your credit journey.
Who Is Velocity Investments
Velocity Investments calls itself an ARM company, or Accounts Receivables Management company. What this means is they are a collections agency that buys outstanding debts from companies like retailers, medical providers, and works to retrieve outstanding debts on behalf of creditors. They get involved when original creditors have been unable to get payment directly from the debtor.
If you find Velocity Investments associated with a debt on your credit report, take heart – you’re not alone. However, if they contact you by phone or mail, do not ignore it. The best strategy is to educate yourself about who they are, then follow the steps below to remove velocity investments from your credit report.
Is Velocity Investments Legitimate?
Velocity investments is a legitimate collection agency operating legally. They are based in Wall, New Jersey and have been around since 2002. As a debt collector, they must operate under the Fair Debt Collection Practices Act. This act was established to protect consumers from unfair debt collection practices.
Under this act, a debt collector may not:
- Call you before 8:00 a.m. or 9:00 p.m. contact you at a time that is inconvenient for you.
- Contact friends or family about your debt.
- Use profane language or verbally harass you
- Misrepresent themselves or the information about your debt.
If you find that Velocity Investments or any debt collector does any of the above, you may file a complaint with the Consumer finance Protection Bureau.
Facing the Impact on Your Credit Score
Collections accounts, including those managed by Velocity Investments, can have a noticeable impact on credit scores. These accounts are considered negative items and may linger on credit reports for a substantial period, usually up to seven years. This shadow might deter you from accessing new credit or loans and might even result in higher interest rates.
Velocity Investments LLC Reviews
Velocity Investments LLC has been a member of the Better Business Bureau since 2012, and they have an A+ rating. But that doesn’t mean reviews of this firm from consumers are positive. The company has multiple negative reviews on Google. Customers cite everything from abusive language to being called incessantly at bad times. Several complaints allege Velocity Investments has contacted them about debts they do not owe. Although there are many bad reviews, this is a legitimate company and it is in your best interest to respond to their attempts to contact you. Use our helpful steps below.
Three Steps to Remove Velocity Investments From Your Credit Report
Step 1: Request Validation
After Velocity Investments contacts you, you have 30 days to request that they validate the debt. In this first step, you ask for concrete proof that the debt is indeed yours and valid.
You can use this free debt validation template from Cambio to write and make this request.
Send the letter by certified mail to:
Velocity Investments
1800 State Route 34,
Suite 404A
Wall Township, NJ 07719-9147
Step 2: Dispute Inaccuracies
Even prior to debt validation, if you spot inaccuracies in the debt information on your credit report, don’t hesitate to file a dispute with the credit bureaus. This move could lead to the immediate removal of incorrect information.
As a reminder, after you request validation, and Velocity Investments responds within 30 days, you should also look for errors in the information in the response. When you look for inaccuracies in the debt validation response, here is what to look for:
The amount of the debt – Is this the correct amount according to your records?
The name of the creditor – is it actually you?
Step 3: Pay For Delete Agreement
If Velocity investments proves that you owe the debt, the best strategy is to arrange a pay for delete agreement. In this deal, you agree to pay a portion of the debt. And in exchange Velocity Investments will remove the item off your credit history and close the account permanently.
Other Options to Move Forward
In the best case scenario, Velocity Investments will either not be able to validate your debt or will agree to a pay for delete settlement. However, if they prove that the debt is yours and Velocity Investments does not agree to a pay for delete settlement, you can move to this step.
Negotiating a Settlement
It is best to communicate directly with Velocity Investments to discuss settling the debt for a reduced amount. In this step, you reach out to Velocity Investments and give an offer based on what you can pay and the debt amount.
Before you do this, here is a tip: You can start with an offer much lower than you are actually able to pay. Some people find that starting with an amount that is 20% of the original debt amount can help you negotiate to an amount you are able to afford. Of course, this will depend on your individual circumstances.
As you negotiate, be very clear about your financial situation and be up-front about what you are able to pay. If you have financial hardship, you can explain this. For example, If you have lost a job or have faced extensive medical bills that led to your situation, mention these details. But whatever you do, do not agree to an amount that you know is beyond your budget.
This step of negotiating a settlement can potentially help in resolving the collections account, and may even minimize the impact on your credit report.
Get Help With Your Credit
Seeking assistance from credit repair agencies or credit counseling services can be an option if you are overwhelmed, or have to deal with multiple collections accounts. These professionals can guide you through the process, and help you understand your options. The Cambio app is one helpful place to start. The app can guide you through the steps to improve your credit score. You can also monitor what impacts your credit score through the app. And, Cambio provides an option to manage credit disputes for you if you want a more comprehensive solution.
A More Positive Financial Future
Remember that you’re not defined by a credit score or collections accounts. Instead, consider these challenges as opportunities for growth and learning. Now that you know how to delete Velocity Investments from your credit report in 3 Simple Steps, you have one of the tools to improve your credit score. With determination and the right information, you can learn to deal with debt collectors the right way, and gain more control over your financial life.
