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Velocity Investments, a debt-buying company founded in 2003 and based in New Jersey, has become a key player in the industry. Unlike traditional methods, it uses a "legal-first" strategy, partnering with law firms rather than call centers to recover debt. The company focuses on purchasing consumer debt, particularly from fintech platforms, at low costs (ranging from $0.01 to $0.10 per dollar of debt) and achieves recovery rates of 40% to 60%.
Key points about Velocity Investments:
While Velocity has an A+ Better Business Bureau rating, it faces criticism for aggressive practices, with over 800 complaints filed to the CFPB in recent years. Despite this, it remains a prominent name in the debt-buying market.
Velocity Investments Key Statistics and Business Model Overview
Velocity takes its legal-first approach a step further by integrating advanced data analytics into its strategy.
By using detailed cash flow forecasting and analytics, Velocity predicts potential returns from delinquent accounts, even those with unpredictable patterns. This approach relies on analyzing insights from past account behaviors to pinpoint litigation-quality accounts that can be recovered through its nationwide network of law firms.
Under the leadership of Chief Analytics Officer Chris Simonetti, Velocity focuses on maximizing the performance of underperforming assets. The company uses proprietary evaluation techniques to determine the most effective recovery strategy for each portfolio. Highlighting this focus, CEO Jack Kleinert commented on a $50 million to $100 million senior credit facility, saying:
This transaction... will also accelerate our buying activity on litigation quality accounts at a time when purchasing opportunities are quite attractive.
Velocity’s portfolio management strategy complements its acquisition methods by prioritizing what it calls an "extended borrowing experience." This includes offering consumers self-service online portals, digital communication channels like email and SMS, and access to financial literacy tools. These consumer-focused initiatives aim to make the debt collection process less stressful while ensuring compliance through regular audits and KPI tracking across its service provider network.
From acquisition to recovery, Velocity’s approach covers the entire debt lifecycle. It emphasizes building long-term partnerships with creditors and managing portfolios directly, ensuring continuous improvement and oversight of recovery practices.
Since its inception in 2003, Velocity Investments has carved out a solid position in the debt-buying industry, supported by its regulatory credentials and long-standing market presence. Over the past two decades, the company has acquired billions of dollars in consumer receivables, establishing itself as a key player in the sector. These achievements have laid the groundwork for strategic financial partnerships that continue to bolster its influence.
Collaborations with financial institutions have been a cornerstone of Velocity's growth. For example, the company successfully extended and increased its senior credit facility with Wells Fargo Foothill, Inc., showcasing its financial resilience during uncertain market periods. More recently, Velocity secured a credit facility valued between $50 million and $100 million from a private debt fund. This funding was aimed at refinancing existing inventory and accelerating the acquisition of litigation-quality accounts.
For creditors, Velocity serves as a reliable solution for managing volatile account segments, particularly within the expanding fintech sector. The firm has purchased delinquent consumer debts from leading fintech platforms like LendingClub Corporation (WebBank), Upstart Network (Cross River Bank), Prosper Funding (WebBank), and Upgrade (WebBank). By utilizing advanced analytics to predict consumer behavior, Velocity delivers precise cash flow forecasts for delinquent portfolios.
Adding to its credibility, Velocity holds an A+ rating from the Better Business Bureau as of late 2025, though customer reviews average a rating of 1 out of 5 stars. The company manages a diverse portfolio of distressed receivables, including fintech loans, online credit lines, traditional credit cards, and automotive installment loans. Typically, debt buyers like Velocity purchase consumer accounts for prices ranging from $0.01 to $0.10 on the dollar, with recoveries often reaching 40% to 60% of the original balance. This combination of market experience and innovative practices underscores Velocity's strengths, while also highlighting areas for consideration.
Meanwhile, platforms like Debexpert are transforming the debt portfolio market. Debexpert facilitates transactions through real-time bidding and secure file sharing, enhanced by end-to-end encryption. This approach streamlines portfolio sales and empowers both buyers and sellers to make informed decisions throughout the acquisition process.
Velocity Investments uses predictive modeling to anticipate consumer behavior, which helps improve the efficiency of its debt recovery efforts. The company also benefits from digital payment portals and a well-established legal network, which contribute to higher collection rates. On average, settlements range between 40–60% of the original debt amount. While these operational tools are effective, they come with their share of challenges.
On the downside, consumer complaints paint a less favorable picture. Despite holding an A+ rating with the Better Business Bureau (BBB), Velocity Investments has faced over 800 complaints lodged with the CFPB and more than 300 complaints submitted to the BBB in just three years. These issues have led to a consumer rating of only 1 out of 5 stars. The most frequent grievances include insufficient debt verification and overly aggressive collection practices.
This mix of strengths and weaknesses highlights the company’s complex role in the debt trading market, reflecting both its operational efficiency and the concerns it raises among consumers.
Velocity Investments has carved out a strong position in the debt-buying industry with its unique "legal first" approach. By partnering with a nationwide network of collection law firms and utilizing advanced predictive analytics, the company has solidified its reputation for effective portfolio management. Since earning RMAI certification in 2015, Velocity has continued to grow, securing a $50–$100 million senior credit facility to expand its acquisitions. Its focus on fintech and marketplace lender debt from platforms like Upstart and Lending Club underscores its role as a key player in the distressed receivables market.
For creditors, Velocity offers tailored solutions, combining litigation expertise with long-term portfolio management strategies. Its data-driven cash flow predictions and compliance-focused recovery efforts make it a reliable partner, particularly for litigation-quality accounts. This dedication to high-quality accounts highlights Velocity’s commitment to delivering exceptional results.
"Not only will the new capital free up more cash flow and create more equity, but it will also accelerate our buying activity on litigation quality accounts at a time when purchasing opportunities are quite attractive."
- Jack Kleinert, CEO, Velocity Portfolio Group
Velocity Investments employs a "legal-first" collections strategy, focusing heavily on legal action to recover debts. When voluntary repayment efforts don't succeed, they may proceed with lawsuits to collect the owed amounts. This model emphasizes strict compliance, carefully planned litigation, and close partnerships with law firms to optimize recovery efforts. For individuals facing such lawsuits, it's crucial to verify the debt, understand protections under the Fair Debt Collection Practices Act (FDCPA), and consider legal defenses or settlement possibilities.
When Velocity Investments deems a debt account as "litigation-quality", it means the account includes clear, verifiable proof of ownership and a properly documented chain of title. This often requires a Bill of Sale that confirms the transfer of rights from the original creditor. Additionally, it must include detailed account information, valid assignments, and affidavits. These elements are essential to establish legal standing and ensure the account can be pursued in court if necessary.
If Velocity Investments reaches out to you regarding a debt, your first step should be to request written validation. This will help confirm the debt's legitimacy, its details, and their right to collect it. Without this verification, avoid making any payments.
If the debt is confirmed as valid, you can explore options like negotiating a settlement or setting up a payment plan. However, if you believe the debt is inaccurate or you face legal action, make sure to clearly communicate your stance. In such cases, consulting an attorney can provide valuable guidance.
Always maintain detailed records of every interaction, including correspondence and payment agreements. This documentation can be crucial if disputes arise.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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