On November 20, 2023, a significant judgment was entered in the Circuit Court of Benton County, Arkansas, in favor of our client, Venkatakishore Dodla, against Velocity Investments, LLC.

Case Background and Legal Proceedings

The litigation began on July 14, 2023, when Mr. Dodla filed a complaint against Velocity Investments. This came after a collection suit by Velocity Investments that alleged debt on Mr. Dodla’s behalf.

Key Findings in Violations of Debt Collection Practices

The court identified clear breaches of both federal and state debt collection laws. The judgment highlighted violations under:

• The Fair Debt Collection Practices Act (FDCPA): The court confirmed that Mr. Dodla, as a consumer, was unfairly targeted by Velocity Investments in its collection attempts. The FDCPA protects consumers from abusive debt collection practices, and Velocity Investments was found to have contravened these protections.
• The Arkansas Fair Debt Collection Practices Act (AFDCPA): Under Arkansas state law, similar protections were found to have been breached, further validating Mr. Dodla’s claims.

For these violations, Mr. Dodla was awarded $1,000 under each statute, underscoring the seriousness of Velocity Investments’ transgressions.

Actual Damages and Attorney Fees

Due to the defendant’s violations, Mr. Dodla incurred $2,400 in actual damages. Furthermore, the court awarded $4,740 in attorney fees based on the time and effort expended by Corey D. McGaha, PLLC. The award of attorney fees also considered factors like the complexity of the issues, customary fees for similar services, and the favorable outcome achieved for Mr. Dodla.

The court additionally approved costs related to court filings and service fees, totaling $259.15.

Total Judgment and Post-Judgment Interest

The court’s total award to Mr. Dodla amounted to $9,399.16, with an added 10.50% post-judgment interest rate. This interest rate was calculated according to Arkansas law, providing further financial recompense for the delays caused by Velocity Investments.

Moving Forward

This outcome underscores our firm’s commitment to protecting consumer rights against improper debt collection practices. This case exemplifies the importance of holding debt collectors accountable to ensure ethical practices within Arkansas and beyond.

If you or a loved one has been similarly affected by debt collection violations, please don’t hesitate to reach out to Corey D. McGaha, PLLC, for trusted legal guidance.