CKS Financial, Velocity Investments Facing Debt Collection Class Action in WI

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A Wisconsin consumer’s proposed class action against Webcollex LLC, which does business as CKS Financial, and Velocity Investments LLC alleges the companies mailed her a collection notice that did not hold up to federal Fair Debt Collection Practices Act (FDCPA) requirements. Focusing separately on the companies’ supposed communications with the plaintiff, the complaint first claims Velocity Investments mailed the woman a letter in which it unlawfully purported to be a collection agency licensed by Wisconsin’s Division of Banking when the company does not hold a state Collection Agency License, nor any similar authorization from any other governmental entity, the case argues.

Per the second defendant, the lawsuit claims Velocity Investments ran afoul of the FDCPA by identifying two different entities as the creditor to whom the plaintiff’s debt is owed. The lawsuit argues that the plaintiff, i.e. the unsophisticated consumer, may be unable to determine whether Velocity Investments purchased her debt account or is simply collecting on it as a third-party subcontracting some of its duties to Webcollex.