Just thought I’d share my story in case it helps someone going through the same thing. I was sued earlier this year by a company called Velocity Investments for a $10,000 loan I took from Upstart in 2021. Upstart was recommended by Credit Karma, but I found them to be a bit predatory.
When I got the lawsuit, I thought about hiring a lawyer, but it was going to cost me $5000. I didn’t want to commit to that since I had other emergencies that could come up. Luckily, the lawyer I was considering has a YouTube channel with instructions on how to represent yourself in court. So, I studied really hard, non-stop.
Note: If you plan on representing yourself, the judge will still expect you to know as much as a lawyer, so be prepared. I went to the courthouse on days when I didn’t even have a hearing just to observe. I wanted to get used to the environment, know where to park, and watch how the judge handles cases.
I initially tried to go for arbitration, but the judge allowed it only if I paid, so that didn’t work out. The trial was set for August 14th, but the plaintiff requested a continuation because they found new evidence (my bank records showing the loan). I thought about filing for bankruptcy, but it wasn’t the best option for me. I was on the line for the income limit, and it might affect my job in the banking industry.
Today was my court date, and I won! The judge dismissed the case because the debt collector didn’t have a purchase agreement and the bill of sale was vague. She even said she was impressed with how I handled everything. I didn’t go in there with a sob story, just facts.
If you’re going through this, just remember: show up to court, stay calm, and stick to the facts. Don’t be afraid to fight back!
Congrats on the win! I’m currently being sued by a 3rd party collector for a charged-off credit card. I’ve already been to court, but the judge granted a continuance. I filed a motion to dismiss due to lack of evidence, and I’m hoping for the best. When I went to court, though, I saw the debt collectors winning every case. The judge was moving so fast!
@Reagan
Same thing happened to me at first. I was really upset when the judge told me I had to come back in 60 days and try to settle. But don’t lose hope. I kept showing up, and today, I finally won. Sometimes it just takes persistence.
Roan said: @Phoenix
Thanks! I’m thinking I might go this route. The only thing on my side is the debt collector has the wrong last four digits of my SSN.
Oh, that’s fantastic! That could work in your favor. Their records are probably all over the place!
@Phoenix
I plan to ask for statements and other details. Every time they call, I ask them to tell me what they have, and once I say it’s incorrect, they just hang up. But they keep sending me emails.
Roan said: @Phoenix
I plan to ask for statements and other details. Every time they call, I ask them to tell me what they have, and once I say it’s incorrect, they just hang up. But they keep sending me emails.
You can file a motion for discovery to get them to provide the evidence they’ll use in court. Check with your court if there’s a fee for that. In my state, some motions are free.
I had a similar experience! I was sued by a debt collector for a service I never received, and I had even gotten a refund before. The judge sided with me because the company wasn’t present to defend themselves, and the debt collector didn’t have the right info. Case dismissed!
Dar said:
Why would the judge be on your side if you took out a loan and didn’t pay it back?
I never said I was the victim. I admitted to taking the loan under oath. The point is, the debt collector didn’t have the legal right to sue me, and that’s why the judge ruled in my favor.