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Velocity Investments Judgment Vacated

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The Georgia Court of Appeals recently vacated a summary judgment in favor of Velocity Investments, LLC and remanded the case to the trial court for further proceedings.

Are you being sued by Velocity Investments or another junk debt buyer in Georgia? Contact Diwan Law at 404-635-6883 for a free case evaluation.

 

What happened in Welker-Reyes v. Velocity Investments?

In Welker-Reyes v. Velocity Investments, LLC, 929 S.E.2d 20 (Ga. App. 2026), Velocity filed a collection lawsuit alleging that the defendant [the "Defendant"] owed $16,181.93. Velocity's complaint included documents that supposedly showed a chain of assignment from Coastal Community Bank to X1 Inc. and then from X1 Inc. to Velocity.

The complaint also included spreadsheet entries, a card-member agreement, and a purported account statement.

But, none of those documents were authenticated or supported by affidavit.

Velocity served requests for admissions ["RFAs"], requests for production, and interrogatories. The trial court granted summary judgment to Velocity, concluding in part that the Defendant's discovery responses had never been filed.

The Court disagreed.

The record showed that the Defendant had, in fact, filed discovery responses. The Court of Appeals vacated the judgment and sent the case back.

What are requests for admissions?

Requests for admissions are a discovery tool that a debt collector can use to ask you to admit facts about the account, the balance, or the ownership of the debt. If you do not respond properly, those facts may be deemed admitted.

But, deadlines matter.

The Court of Appeals explained that the Defendant ordinarily had 45 days after service of the summons and complaint before responses were required under O.C.G.A. § 9-11-36(a)(2). And, the Court discussed Georgia's statutory discovery stay that applies when a defendant files a timely motion to dismiss.

Generally speaking, this is one reason you should not try to handle a debt lawsuit on your own.

Is a debt buyer's complaint proof of the debt?

No.

The Court emphasized that unsworn pleadings [such as an unverified complaint] are not evidence for purposes of summary judgment. A debt buyer must make a prima facie showing that there are no material factual disputes and that it is entitled to judgment as a matter of law.

So, simply attaching documents to a complaint does not prove your case.

In Welker-Reyes, the Court stated that the record contained only unverified pleadings and no authenticated substantive evidence supported by affidavit proving the debt or Velocity's status as creditor. The Court was not persuaded.

WHAT SHOULD YOU DO IF VELOCITY INVESTMENTS SUES YOU?

The worst thing you can do is nothing.

If you do not respond to the lawsuit, Velocity will get a default judgment against you. Armed with the default judgment, the debt collection company can garnish your wages and bank accounts.

When clients ask me about Velocity lawsuits, I tell them to call right away. Cases vary, so you must capitalize on the defense tactics that will maximize your chances for a good outcome in your specific case.

Diwan Law will assert all viable defenses you may have, file the appropriate motions, and negotiate with the creditor. We have the knowledge and experience to defend you in every aspect of your case.

No matter where you are in the collection process, you deserve to know your rights and what to expect. Give us a call at 404.635.6883.

Conclusion

If Velocity Investments, LVNV Funding, Portfolio Recovery Associates, or another junk debt buyer has sued you, do not ignore the lawsuit. Contact Diwan Law, the debt defense lawyer, today at (404) 635-6883 to schedule your free case evaluation.

 

About Diwan Law

Diwan Law is dedicated to getting our clients the best result possible.

Diwan Law handles debt collection actions against consumers in the Magistrate, State, and Superior Courts of Georgia.

Diwan Law represents clients facing:

  • Debt buyer debt collection lawsuits (i.e. Midland Funding, Portfolio Recovery Associates, Asset Acceptance, Cavalry Portfolio Services, Unifund, etc.);
  • Original creditor debt collection lawsuits (i.e. American Express, Citibank, Suntrust, etc.);
  • Debt collection lawsuits arising from credit cards, automobile repossession deficiencies, apartment leases, and other contract-related matters;
  • Dormant judgment revival; and
  • Garnishment actions on bank accounts or wages.

 

Diwan Law Handles Cases in:

Gwinnett County Magistrate Court; Dekalb County Magistrate Court; Cobb County Magistrate Court; Fulton County Magistrate Court; Henry County Magistrate Court; and most other magistrate courts in Georgia.

Tags: Attorney, consumer rights, debt collection defense, debt buyer lawsuit, Velocity Investments, garnishment, fdcpa

* The information presented in this article does not constitute legal advice. All information, content, and materials presented on this website are for general informational purposes only. If your business is sued, we encourage you to contact Diwan Law before taking any action.

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