Complaint Unlimited Fee AppliesCal. Super. - 6th Dist.December 7, 2020KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO E-FILED 12/7/2020 11:04 AM Fred W. Schwinn (SBN 225575) C'erk 9f court Raeon R. Roulston (SBN 255622) SUper'or court 0f CA’ Matthew C. Salmonsen (SBN 302854) county 0f santa Clara CONSUMER LAW CENTER, INC. 200V37391 6 1435 K011 Circle, Suite 104 Reviewed By: R. Walker San Jose, California 95 1 12-4610 Telephone Number: (408) 294-6100 Facsimile Number: (408) 294-6190 Email Address: fred.schwinn@sjconsumerlaw.com Attorneys for Plaintiff DAVID CHAI SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SANTA CLARA DAVID CHAI, individually and on behalf of Case NO, 2°CV37391 5 all others similarly situated, (Unlimited Civil Case) Plaintiff» CLASS ACTION COMPLAINT V' FOR STATUTORY DAMAGES VELOCITY INVESTMENTS, LLC, a New Jersey limited liability company; VELOCITY PORTFOLIO GROUP, 1NC., a Delaware corporation; and DOES 1 through 10, inclusive, California Civil Code §§ 1788.50-1788.64 Defendants. Plaintiff, DAVID CHAI, 0n behalf 0f himself and all others similarly situated, based on information and belief and investigation 0f counsel, except for those allegations which pertain t0 the named Plaintiff or his attorneys (Which are alleged 0n personal knowledge), hereby makes the following allegations: INTRODUCTION 1. This is a consumer class action brought pursuant t0 the California Fair Debt Buying Practices Act, California Civil Code §§ 1788.50-1788.64 (hereinafter “CFDBPA”) which prohibits debt buyers from engaging in abusive, deceptive, and unfair practices. Plaintiff, DAVID CHAI, on behalf 0f himself and all persons similarly situated, seeks statutory damages against Defendants arising from _ 1 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO their routine practice of sending initial written communications, like the one sent t0 Plaintiff, Which do not contain the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1). As a result, Defendants have engaged in unlawful acts in connection with their attempt to collect charged-off consumer debts from Plaintiff and the Class. JURISDICTION AND VENUE 2. The California Superior Court has jurisdiction over this action pursuant t0 California Code 0f Civil Procedure § 410.10 and California Constitution Article VI, § 10, Which grants the Superior Court “original jurisdiction in all cases except those given by statute to other trial courts.” The statute under which this action is brought does not grant jurisdiction t0 any other trial court in California. 3. This Court has jurisdiction over each Defendant named herein because, based 0n information and belief, each Defendant is a corporation or association authorized to d0 business in California and registered with the California Secretary 0f State, 01‘ does sufficient business, has sufficient minimum contacts in California, is a citizen 0f California, or otherwise intentionally avails itself of the California market through the promotion, sale, marketing and/or distribution of goods and services in California and thereby having such other contacts with California so as t0 render the exercise 0f jurisdiction over it by the California courts consistent With traditional notions 0f fair play and substantial justice. 4. Venue is proper in the Santa Clara Superior Court, pursuant t0 California Code 0f Civil Procedure §§ 393 and 395.5, because one 0r more of the Violations alleged in this Complaint arise in the County 0f Santa Clara. Venue is also proper in the Santa Clara Superior Court, pursuant to California Code 0f Civil Procedure § 395(b), because this action arises from an extension 0f credit intended primarily for personal, family, 0r household use and Plaintiff (the alleged borrower) resided in _ 2 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO the County 0f Santa Clara at the commencement of this action. 5. The total amount in controversy as to Plaintiff and each member 0f the proposed Class does not exceed seventy-four thousand, nine hundred and ninety-nine dollars ($74,999) each, exclusive 0f interest and costs. Plaintiff disclaims any compensatory damages, punitive damages, declaratory, injunctive, 0r equitable relief greater than seventy-four thousand, nine hundred and ninety- nine dollars ($74,999) per individual Class member. Plaintiff and the proposed Class limit their total class Wide claims t0 less than four million, nine hundred and ninety-nine thousand, nine hundred and ninety-nine dollars ($4,999,999.00). 6. Plaintiff and the proposed Class seek only statutory damages in this action and do not allege in this Class Action Complaint for Statutogy Damages that they, 0r any 0f them, have suffered a concrete injury Within the meaning 0f Article III 0f the United States Constitution and the Supreme Court’s related interpretation.1 PARTIES 7. Plaintiff, DAVID CHAI (hereinafter “Plaintiff’), is a natural person residing in Santa Clara County, California. Plaintiff is a “debtor” as that term is defined by California Civil Code § 1788.2(h), as incorporated by California Civil Code § 1788.50(C). 8. Defendant, VELOCITY INVESTMENTS, LLC (hereinafter “VELOCITY”), is a New Jersey limited liability company engaged in the business 0f purchasing and collecting charged-off consumer debts in this state with its principal place of business located at: 1800 Route 34N, Suite 404A, Wall, New Jersey 07719. The principal purpose of VELOCITY’S business is the collection 0f defaulted consumer debts using the mails, telephone, and internet, and VELOCITY regularly attempts t0 collect defaulted consumer debts alleged t0 be originally due another. VELOCITY does not originate loans 0r extend credit t0 consumers, instead, VELOCITY purchases defaulted consumer debts for pennies 0n the 1 See, Spokeo, Inc. v. Robins,_ U.S. _, 136 S. Ct. 1540 (2016). _ 3 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO dollar. After purchasing defaulted consumer debts, VELOCITY then contracts with a myriad of debt collectors across the country. VELOCITY participates in the collection process by setting parameters 0f the terms and amounts 0f the payments made by debtors. Plaintiff is informed and believes, and thereon alleges, that VELOCITY actively participates in and directs the collection 0f its accounts. VELOCITY derives all 0r the vast majority of its income from the collection 0f defaulted consumer debts, and VELOCITY has no other significant business activities other than those described in this Complaint. VELOCITY is a “debt collector” as that term is defined by California Civil Code § 1788.2(0), and as incorporated by California Civil Code § 1788.50(C), and a “debt buyer” as that term is defined by California Civil Code § 1788.50(a)(1). 9. Defendant, VELOCITY PORTFOLIO GROUP, INC. (hereinafter “VPGI”), is a Delaware corporation engaged in the business of purchasing and collecting defaulted consumer debts in this state with its principal place of business located at: 1800 Route 34N, Suite 404A, Wall, New Jersey 07719. VPGI shares are publicly traded on the OTC Market (OTCMKTS: VPGI). VPGI may be served as follows: Velocity Portfolio Group, Inc., C/o The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware 19801. VPGI is engaged in the business 0f purchasing and collecting defaulted, charged-off consumer debts through its wholly owned subsidiary, VELOCITY. VPGI derives the vast majority 0f its income from the collection of purchased consumer debts Which are defaulted and have been charged-off by original creditors. Therefore, VPGI is a “debt buyer” as that term is defined by California Civil Code § 1788.50(a)(1), and a “debt collector” as that term is defined by California Civil Code § 1788.2(0). 10. Plaintiff is informed and believes, and thereon alleges that, there is such a unity of interest and ownership that the separate personalities 0f VELOCITY and VPGI d0 not exist; and if the unlawful collection acts and practices described herein are treated as those 0f VELOCITY alone, an _ 4 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO inequitable result Will follow. Specifically, VPGI controls and dominates VELOCITY’S operations and activities; VPGI has inadequately capitalized VELOCITY commensurate With its operations and activities; and, therefore, VPGI and VELOCITY should be treated as a single entity. 11. Plaintiff is informed and believes, and thereon alleges that, VELOCITY is merely an instrumentality, agent, conduit, 0r adjunct 0f VPGI. Specifically, in its most recently released Annual Report VPGI describes the nature 0f its business and its relationship with VELOCITY as follows: The Company conducts its operations through the following wholly owned subsidiaries: Velocity Investments, L.L.C. (“Velocity”) was established to invest in consumer receivable portfolios purchased in the secondary market. Velocity purchases consumer receivable portfolios at a discount and then liquidates these portfolios through legal collection means. The Company invests in consumer debt portfolios purchased directly from originators or in the secondary market. The Company purchases consumer receivable portfolios at a discount and then liquidates these portfolios primarily through legal collection means. The Company uses its proprietary valuation process t0 calculate the purchase price so that its estimated cash flow from such portfolios offers it an adequate return 011 our investment after servicing expenses. The Company generally purchases consumer receivable portfolios that include charged-off credit card receivables, Which are accounts that have been written off by the originators, and consumer installment loans. When evaluating a portfolio for purchase, the Company conducts an extensive quantitative and qualitative analysis of the portfolio t0 appropriately price the debt and t0 identify portfolios that are optimal for collection through its legal collection network. This analysis relies upon, but is not limited t0, the use 0f the Company’s proprietary pricing and collection probability model and draws upon management’s extensive experience in the legal collection and debt-buying industry. The Company purchases consumer receivable portfolios from creditors and others through privately negotiated direct sales and auctions in which sellers of consumer receivables seek bids from pre-qualified debt purchasers. The Company pursues new acquisitions 0f consumer receivable portfolios on an ongoing basis through its relationships with industry participants, collection agencies, investors, its financing sources, brokers Who specialize in the sale 0f consumer receivable portfolios and other sources. Its consumer receivable portfolios are purchased through internally generated cash flow, seller financed credit lines/leases and traditional leverage methods. The Company’s profitability depends upon its ability t0 purchase and collect 0n a sufficient volume 0f its consumer receivables t0 generate revenue that exceeds its costs. _ 5 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO The Company’s strategy includes: managing the legal collection and servicing of its receivable portfolios ...2 12. The true names and capacities, whether individual, corporate, associate, governmental, 0r otherwise, of Defendants, DOES 1 through 10, are unknown to Plaintiff at this time, who therefore sues said Defendants by such fictitious names. When the true names and capacities 0f said Defendants have been ascertained, Plaintiff Will amend this Complaint accordingly. Plaintiff is informed and believes, and thereon alleges, that each Defendant designated herein as a DOE is responsible, negligently or in some other actionable manner, for the events and happenings hereinafter referred to, and caused damages thereby t0 the Plaintiff, as hereinafter alleged. Defendant, DOES 1-10, are, and each 0f them is, a “debt collector” as that term is defined by California Civil Code § 1788.2(0), as incorporated by California Civil Code § 1788.50(c), and a “debt buyer” as that term is defined by California Civil Code § 1788.50(a)(1). 13. At all times herein mentioned, each 0f the Defendants was the agent, servant, employee, and/or joint venturer of his/her/its Co-Defendants, and each of them, and at all said times, each Defendant was acting in the full course and scope 0f said agency, service, employment, and/or joint venture. Any reference hereafter t0 “Defendants” Without filrther qualification is meant by Plaintiff to refer to each Defendant, and all of them, named above. 14. Plaintiff is informed and believes, and thereon alleges that at all times herein mentioned, Defendants, DOES 1-10, inclusive, were and are individuals, corporations, partnerships, unincorporated associations, sole proprietorships, and/or other business entities organized and existing under and by Virtue 0f the laws 0f the State 0f California, or the laws of some other state or foreign jurisdiction, and that said Defendants, and each 0f them, have regularly conducted business in the County of Santa Clara, State 0f California. 2 https://backend.0tcmarkets.com/otcapi/company/financial-report/ 1 23674/content _ 6 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO FACTUAL ALLEGATIONS 15. On a date 0r dates unknown t0 Plaintiff, Plaintiff is alleged t0 have incurred a financial obligation in the form of a consumer credit account issued by CITIBANK, N.A. (hereinafter the “alleged debt”). Plaintiff generally denies that any debt is owed. The alleged debt t0 CITIBANK, N.A., was primarily for personal, family, 0r household purposes and is therefore a “consumer debt” as that term is defined by California Civil Code § 1788.2(f), as incorporated by California Civil Code § 1788.50(c). 16. Thereafter, 0n a date unknown t0 Plaintiff, CITIBANK, N.A., removed the alleged debt from its books as an asset and treated the alleged debt as a loss or expense. As a result, the alleged debt was thereafter a “charged-off consumer debt” as that term is defined by California Civil Code § 1788.50(a)(2). 17. Thereafter, on a date unknown to Plaintiff, but after January 1, 2014, the alleged debt was sold 0r resold t0 Defendants for collection purposes. 18. Because the alleged debt was sold or resold after January 1, 2014, Defendants’ collection of the alleged debt is subject to the California Fair Debt Buying Practices Act, California Civil Code §§ 1788.50-1788.64 (“CFDBPA”), pursuant t0 California Civil Code § 1788.50(d). 19. Plaintiff is informed and believes, and thereon alleges that, 0n a date unknown t0 Plaintiff, Defendants hired, contracted, 0r otherwise engaged CONVERGENT OUTSOURCING, INC., t0 collect the alleged debt from Plaintiff and the Class 0n Defendants’ behalf. 20. Thereafter, CONVERGENT OUTSOURCING, INC., was, and acted as, Defendants’ authorized agent with the actual or ostensible authority t0 act on Defendants’ behalf. 21. On 0r about September 23, 2020, CONVERGENT OUTSOURCING, INC., sent, 0r caused t0 be sent, a written communication t0 Plaintiff at Defendants’ request and on Defendants’ _ 7 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO behalf. This was the first written communication from Defendants t0 Plaintiff With regard t0 the alleged debt. 22. A true and accurate copy of Defendants’ first written communication to Plaintiff is attached hereto, marked Exhibit “1 ,” and by this reference is incorporated herein. 23. Defendants’ first written communication did not contain the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1). 24. Defendants are strictly liable t0 Plaintiff and the Class for CONVERGENT OUTSOURCING, INC.’s, failure t0 provide the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1).3 25. Defendants owed Plaintiff and the Class a nondelegable duty t0 ensure that CONVERGENT OUTSOURCING, INC., complied With the CFDBPA in all respects, including California Civil Code § 1788.52(d)(1).4 Therefore, Defendants are liable t0 Plaintiff and the Class for CONVERGENT OUTSOURCING, INC.’s, failure t0 provide the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1).5 DEFENDANTS’ ROUTINE PRACTICES 26. It is the standard practice and policy 0f Defendants t0 send, 0r cause t0 be sent, initial collection communications in the form 0f Exhibit “1” which seek t0 collect charged-off 3 Brodsky v. California State Board ofPharmacy, 173 Cal. App. 2d 680, 688 (Cal. App. 2d Dist. 1959); In re Marley, 29 Cal. 2d 525, 529 (Cal. 1946) (“Where qualifying words such as knowingly, intentionally, 0r fraudulently are omitted from provisions creating the offense it is held that guilty knowledge and intent are not elements 0f the 0ffense.”). 4 SeaBright Ins. C0. v. US Airways, Ina, 52 Cal. 4th 590, 600-601 (Cal. 2011) (“The nondelegable duties doctrine prevents a party that owes a duty t0 others from evading responsibility by claiming t0 have delegated that duty t0 an independent contractor hired t0 d0 the necessary work. The doctrine applies when the duty preexists and does not arise from the contract with the independent contractor.”). 5 Maloney v. Rath, 69 Cal. 2d 442, 446 (Cal. 1968) (“a nondelegable duty operates, t0 assure that When a negligently caused harm occurs, the injured party will be compensated by the person Whose activity caused the harm and Who may therefore properly be held liable for the negligence 0f his agent, Whether his agent was an employee 0r an independent contractor.”). _ 8 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO consumer debts incurred for personal, family, or household purpose. 27. It is the standard practice and policy 0f Defendants t0 send initial collection communications in the form of Exhibit “1” Which fail t0 contain the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1). CLASS ALLEGATIONS 28. Plaintiff brings this action on behalf 0f a class of all other persons similarly situated. 29. Plaintiff tentatively defines the class as (i) all persons With addresses in California (ii) t0 whom CONVERGENT OUTSOURCING, INC., sent, 0r caused t0 be sent, an initial written communication in the form of Exhibit “1” on behalf of Defendants (iii) in an attempt t0 collect a charged-off consumer debt originally owed t0 CITIBANK, N.A., (iv) which was sold or resold t0 Defendants on or after January 1, 2014, (V) which were not returned as undeliverable by the U.S. Post Office (Vi) during the period one year prior t0 the date 0f filing this action through the date 0f class certification. 30. Excluded from the class would be any officers, directors, or legal representatives 0f Defendants, and any judge, justice, 0r judicial officer presiding over this matter and the members 0f their immediate families and judicial staff. Plaintiff reserves the right to modify the Class definition and Class period based 0n the results 0f discovery. 31. The class is so numerous that joinder 0f all members is impractical. On information and belief, collection notices in the form 0f Exhibit “1” have been sent t0 hundreds 0f California class members. 32. Defendants have acted With respect t0 the Class, in a manner generally applicable t0 Plaintiff and each Class member. There is a well-defined community of interest in the questions 0f _ 9 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO law and fact involved in this action, which affects all class members. Questions 0f law and fact common t0 the class predominate over any questions peculiar t0 individual Class members. The common questions include: a. Whether Defendants are debt buyers; b. Whether Defendants have a nondelegable duty to ensure that its agents comply with the CFDBPA in all respects, including California Civil Code § 1788.52(d)(1); and c. Whether Defendants sent Plaintiff and the class initial written communication in the form 0f Exhibit “1”, which failed t0 contain the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1). 33. There are n0 individual questions 0f law 0r fact, other than Whether a class member was sent the offending collection communication, which can be determined by ministerial inspection 0f Defendants’ records. 34. Plaintiff will fairly and adequately represent and protect the interest of the class members. Plaintiff is committed to vigorously litigating this matter. Plaintiff has retained counsel experienced in handling class claims and litigation brought pursuant t0 various consumer protection statutes, including the California Fair Debt Buying Practices Act, California Civil Code §§ 1788.50- 1788.64 (“CFDBPA”), the federal Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692-1692p (“FDCPA”) and the California Rosenthal Fair Debt Collection Practices Act, California Civil Code §§ 1788-1788.33 (“RFDCPA”). Neither Plaintiff nor his counsel have any interests Which might cause them not t0 vigorously pursue this claim. Plaintiff and his counsel Will vigorously pursue this matter. 35. Plaintiff’s claims are typical 0f the claims of the other members 0f the Class in that Plaintiff and other Class members were similarly harmed by the actions 0f Defendants and the claims alleged herein all arise from the same operative facts and are based 0n the same legal theories. _ 10 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO Plaintiff is a member of the Class he seeks to represent and he has suffered harm due t0 the unfair, deceptive, and unlawful practices 0f Defendants. 36. Defendants have acted 0r refused to act, With respect to some 0r all issues presented in this Complaint, 0n grounds generally applicable t0 the Class, thereby making it appropriate to provide relief with respect t0 the Class as a Whole. 37. A class action is a superior method for the fair and efficient adjudication of this controversy. Most 0f the class members Who received written communications in the form of Exhibit “1” have n0 knowledge that their rights are being violated by illegal collection practices. The interest 0f the class members in individually controlling the prosecution 0f separate claims against Defendants is small because the maximum damages in an individual action are $1,000, pursuant t0 California Civil Code § 1788.62(a)(2). Management 0f this class action is likely t0 present significantly fewer difficulties than those presented in many other class actions. 38. A class action is the best available method 0f the efficient adjudication of this litigation because individual litigation 0f Class members’ claims would be impracticable and unduly burdensome to the courts, and have the potential t0 result in inconsistent 0r contradictory judgments. There are no unusual difficulties likely to be encountered in the management 0f this litigation as a class action. A class action presents fewer management problems and provides the benefits 0f single adjudication, economies 0f scale, and comprehensive supervision by a single court. 39. Certification of the Class under California Code 0f Civil Procedure § 382 is appropriate in that: a. The questions 0f law 0r fact common to the members of the Class predominate over any questions affecting only individual members; and b. A class action is superior t0 other available methods for the fair and efficient _ 11 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO adjudication 0f the controversy. 40. Certification of a class under California Code 0f Civil Procedure § 382 is also appropriate in that Defendants acted 0n grounds generally applicable t0 the Class, thereby making appropriate declaratory relief With respect t0 the Class as a whole. 41. Plaintiff and the Class are entitled t0 an award 0f attorney fees and costs against Defendants, pursuant t0 the CFDBPA, California Civil Code § 1788.62(c)(1). FIRST CAUSE OF ACTION CALIFORNIA FAIR DEBT BUYING PRACTICES ACT 42. Plaintiff and the Class bring the first cause of action against Defendants under the California Fair Debt Buying Practices Act (“CFDBPA”), California Civil Code §§ 1788.50-1788.64. 43. Plaintiff repeats, realleges, and incorporates by reference all preceding paragraphs as though fully set forth herein. 44. Plaintiff is a “debtor” as that term is defined by California Civil Code § 1788.2(h), as incorporated by California Civil Code § 1788.50(c). 45. Defendant, VELOCITY, is a “debt collector” as that term is defined by California Civil Code § 1788.2(0), as incorporated by California Civil Code § 1788.50(c). 46. Defendant, VPGI, is a “debt collector” as that term is defined by California Civil Code § 1788.2(0), as incorporated by California Civil Code § 1788.50(c). 47. Defendant, VELOCITY, is a “debt buyer” as that term is defined by California Civil Code § 1788.50(a)(1). 48. Defendant, VPGI, is a “debt buyer” as that term is defined by California Civil Code § 1788.50(a)(1). 49. The financial obligation alleged to be owed by Plaintiff t0 Defendants is a _ 12 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES KOOOQONUl-RUJNH NNNNNNNNNr-‘r-‘r-‘r-‘r-ir-‘Hr-Ar-‘r-A OONONUI-PUJNHOKOOOQONUI-RUJNHO “consumer debt” as that term is defined by California Civil Code § 1788.2(f), as incorporated by California Civil Code § 1788.50(c). 50. The financial obligation alleged to be owed by Plaintiff to Defendants is a “charged-off consumer debt” as that term is defined by California Civil Code § 1788.50(a)(2). 51. Defendants’ first written communication t0 Plaintiff failed t0 include the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1). 52. Defendants have engaged in a pattern and practice of Violating the CFDBPA, California Civil Code § 1788.52(d)(1). 53. As a result of Defendants’ Violations of the CFDBPA, Plaintiff is entitled t0 an award of statutory damages in an amount not less than one hundred dollars ($100) nor greater than one thousand dollars ($1,000) against each Defendant, pursuant to California Civil Code § 1788.62(a)(2). 54. As a result of Defendants’ pattern and practice of Violating the CFDBPA, the Class is entitled t0 an award of statutory damages in an amount not t0 exceed the lesser 0f five hundred thousand dollars ($500,000) or 1 percent 0f the net worth of each Defendant, pursuant t0 California Civil Code § 1788.62(b). 55. As a result 0f Defendants’ Violations 0f the CFDBPA, Plaintiff is entitled t0 an award of reasonable attorney’s fees and costs, pursuant t0 California Civil Code § 1788.62(c). RE UEST FOR RELIEF Plaintiff requests that this Court: a) Assume jurisdiction in this proceeding; b) Certify this case as a class action and appoint Plaintiff and Plaintiff’s counsel to represent the Class. c) Find that Defendants violated the California Fair Debt Buying Practices Act, _ 13 _ CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES \OOOflQUl-RUJNr-A NNNNNNNNNr-tr-tb-tr-tr-tr-‘r-‘r-tr-‘r-A OOQONUI-PUJNHOKOOOQQUI-PUJNF-‘O California Civil Code § 1788.52(d)(1); d) Award Plaintiff statutory damages in an amount not less than $100 nor greater than $1,000 against each Defendant, pursuant to California Civil Code § 1788.62(a)(2); e) Award the class statutory damages in an amount not t0 exceed the lesser 0f five hundred thousand dollars ($500,000) or 1 percent 0f the net worth of each Defendant, pursuant to California Civil Code § 1788.62(b); t) Enter an Order enjoining Defendants from continuing the practices at issue in this case, pursuant t0 California Civil Code § 3422; g) Award Plaintiff the costs of this action and reasonable attorney’s fees, pursuant to California Civil Code § 1788.62(c); and h) Award Plaintiff such other and further relief as may be just and proper. CONSUMER LAW CENTER, INC. Dated: December 7. 2020 By: E Fred W. Schwinn (SBN 225575) D Raeon R. Roulston (SBN 255622) D Matthew C. Salmonsen (SBN 302854) CONSUMER LAW CENTER, INC. 1435 K011 Circle, Suite 104 San Jose, California 95 1 12-4610 Telephone Number: (408) 294-6100 Facsimile Number: (408) 294-6190 Email Address: fred.schwinn@sjconsumerlaw.com Attorneys for Plaintiff DAVID CHAI -14- CLASS ACTION COMPLAINT FOR STATUTORY DAMAGES o ATERSO01 PO Box 1280 Oaks, PA 19456-1280 CHANGE SERVICE REQUESTED David H Chai 2823 Lexford Ave San Jose CA 95124-1829 Convergent Outsourcing, Inc. 800 SW 39th St.. Suite #100/PO Box 9004 Renton, WA 98057 Mon-Thu 8AM-8PM, Fri 8AM-5PM CST 877-495-0400 Date: 09/23/2020 Creditor: Velocity Investments, LLC Original Account#: 5466160040789644 Convergent Account#: S-69073474 Original Creditor: Citibank, NA Reduced Balance Amount: $4,340.24 Amount Owed: $12,400.69 Total Balance: $12,400.69 Reduced Balance Opportunity Dear David H Chai: The account referenced above has been placed by Velocity Investments, LLC with our office for collection. Our client has advised us that they are willing to satisfy your account in full for 35% of your total balance. The reduced balance amount of $4,340.24 must be received in our office by an agreed upon date. If you are interested in taking advantage of this opportunity, call our office within 60 days of your receipt of this letter. We are not obligated to renew this offer. Sincerely, Convergent Outsourcing, Inc. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. THIS COMMUNICATION IS FROM A DEBT COLLECTOR. NOTICE: PLEASE SEE REVERSE SIDE FOR IMPORTANT CONSUMER INFORMATION. Questions about Convergent visit http://converqenthelp.com/ 3 CONVENIENT WAYS TO PAY: Pay Online: Pay your bill online with your credit/debit card or checking account at www.pavconverqent.com Pay by Phone: We offer check by phone, Western Union, and credit/debit card. 877-495-0400. Pay by Mail: Send payments to Convergent Outsourcing, Inc., PO Box 9004, Renton, WA 98057-9004. PLEASE DETACH THE BOTTOM PORTION WITH YOUR PAYMENT. BEFORE MAILING, PLEASE ENSURE RETURN ADDRESS aoorar/qi <>.£REVERSE SIDE APPEARS CORRECTLY THROUGH THE WINDOW OF THE REPLY ENVELOPE 846ATERSO01S135XGX Convergent Phone #: 877-495-0400 Date: 09/23/2020 Creditor: Velocity Investments, LLC Original Account #: 5466160040789644 Convergent Account #: S-69073474 Reduced Balance Amount: $4,340.24 Total Balance: $12,400.69 Amount Enclosed: US New Address: Address: City: ST Zip: Daytime Phone: ( ) - Evening Phone: ( ) - Convergent Outsourcing, Inc. PO Box 9004 Renton WA 98057-9004 Questions about Convergent visit http://converqenthelp.com/ OaODLnOVBMTMDOOiaHDDknDDMBMDaU 0051600096962268849195124182923 00703000969000000000980579004 https://www.emergetechnology.net/#/payconvergent/ Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume the debt is valid. If you notify this office in writing at PO Box 9004, Renton, WA 98057 within 30 days from receiving this notice that you dispute the validity of this debt or any portion thereof, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing at PO Box 9004, Renton, WA 98057 within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor. Federal law requires that Velocity tells you how they collect, share, and protect your personal information. Their most current Privacy Policy, as of January 1,2020, is available for you to review on their web site at www.velocityrecoveries.com on the Consumer Information tab or you can go here http://bit.lv/2rLI70n. If you would prefer to receive a copy in the mail please contact us at 1-800-558- 4027 or support@velocityrecoveries.com and we will send you a copy in the regular mail. Notice about Electronic Check Conversion: When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment and you will not receive your check back from your financial institution. Also, you authorize us to represent a check as an electronic fund transfer from your account if your payment is returned unpaid. The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov. California residents may obtain information about verifiable requests pursuant to CCPA by visiting our website at: https://www.convergentusa.com/outsourcing/page/ccpa-policy. The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it, and we will not report it to any credit reporting agency.
