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CrazyNorge's Achievements


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  1. I had no idea that some states didn't allow an assignee to go through small claims. Unfortunately, this doesn't apply where I am. My main concern right now is having what I need to file a motion to dismiss if Midland files a lawsuit against me. I sent them a letter (Certified, Return Receipt) that demanded arbitration. I never filled out the formal "Demand for Arbitration Before JAMS" form. I'm not sure if my certified letter is adequate.
  2. More than two months have passed since I heard from Midland. They never acknowledged the fact that I sent them a written demand for arbitration. They just sent me a generic form letter saying they understood I'm disputing the accuracy of their records. I'm kind of at a crossroads and don't know what my next step, if any, should be. If I initiate arbitration with JAMS, I believe I may be opening up a can of worms. Under the agreement, Midland can't initiate arbitration on a small claims matter. Because the alleged debt is just under $9,000, and the consensus seems to be that they'll move forward with arbitration if I go that route, I'm afraid they're waiting for me to open that door for them. If this does go to arbitration, do you think I'd have any success questioning Midland's ownership of the account based on the type of documents they'll likely furnish to establish ownership? Any advise would be greatly apprecaited! Thank you.
  3. Thank you for your continued advise. I'm willing to drag this out for a long time. My main objective was to send them something in writing to let them know I'm electing arbitration. According to the agreement, this takes away their right to take this matter to court. Court is something I was really afraid of.
  4. Thank you for your advise. Both of you really clarified things for me. Discover hasn't sued me yet. The amount they are seeking is in the mid $6,000 range. I'm not sure is this is high enough for them to hash it out in arbitration. I'd be willing to settle. However, I only have $1,000-2,000 available. Thanks again for your help! I'll let you know what happens.
  5. Thank you for the link. I was just about to prepare a demand for arbitration letter when I noticed a section of the cardholder agreement titled Claim Notices. This states that I need to notify Discover in writing of any claim at least 15-days before initiating any proceeding. I also need to describe the nature of my claim and provide any supporting facts. Claim Notices: In the event that you or we have a claim that arises from or relates to your Account, any prior account youhad with us, your application, the relationships which result from your Account or the enforceability of the Agreement orany prior agreement, before initiating, joining or participating in any judicial or arbitration proceeding, as either anindividual litigant or member of a class (“Proceeding”), the complaining party shall give the other party: (1) a written noticeof the claim (“Claim Notice”), at least 15 days before initiating any Proceeding, explaining in reasonable detail the natureof the claim and any supporting facts; and (2) a reasonable good faith opportunity to resolve the claim without thenecessity of a Proceeding. This paragraph says the written notification is required, "...before initiating, joining or participating in any judicial or arbitration proceeding." I'm wondering if I can go ahead and send a demand for arbitration letter that also acts as a written request for them to advance the arbitration filing fees under the cardholder agreement. (This technically isn't initiating an arbitration proceeding. Is it?) The goal of doing this is to have the grounds to file a motion to dismiss if Discover files a lawsuit against me. Here's the paragraph on fees and costs: Fees and Costs: At your written request, we will advance any arbitration filing, administrative and hearing fees which you would be required to pay to pursue a claim or dispute as a result of our electing to arbitrate that claim or dispute. Send requests to... I believe my next move should be to send a demand for arbitration letter. I just wanted to get some second opinions before I went ahead and did this. Thanks in advance for your help.
  6. Thank you for your replies. I wasn't aware of the JAMS cap on fees. That's nice to know. Once a Demand for Arbitration is sent, do I need to contact JAMS to initiate the process? I wasn't sure if I can send a demand letter and essentially do nothing until I receive a reply.
  7. Does anyone have experience with sending a Demand for Arbitration to Discover? I've done this with Midland for a JC Penney account (the arbitration section of the agreement provided that the creditor pay the arbitration costs). In the case of Discover, the agreement says Discover will advance the fees to the card holder. It further says, "You will only be responsible for paying or reimbursing our arbitration filing, adminstrative or hearing fees to the extent you would have been responsible for paying 'attorneys’ fees and court or other collection costs' had the action proceeded in court." Here are some clips of text from the 2009 Discover Cardmember Agreement: http://www.cardmemberagreements.org/wp-content/uploads/2012/08/2009-Discover-Agreement-with-JAMS.pdf IF EITHER YOU OR WE ELECT ARBITRATION, NEITHER YOU NOR WE SHALL HAVE THE RIGHT TO LITIGATE THAT CLAIM IN COURT OR TO HAVE A JURY TRIAL ON THAT CLAIM. PRE-HEARING DISCOVERY RIGHTS AND POST-HEARING APPEAL RIGHTS WILL BE LIMITED. Fees and Costs. At your written request, we will advance any arbitration filing, administrative and hearing fees which youwould be required to pay to pursue a claim or dispute as a result of our electing to arbitrate that claim or dispute. Send requests to Discover, PO Box 30421, Salt Lake City, UT 84130-0421. The arbitrator will decide who will ultimately be responsible for paying those fees. You will only be responsible for paying or reimbursing our arbitration filing, administrative or hearing fees to the extent you would have been responsible for paying “attorneys’ fees and court or other collection costs” had the action proceeded in court. In no event will you be required to pay any fees or costs incurred by us in connection with an arbitration proceeding where such a payment or reimbursement is prohibited by applicable law. I'm not 100% clear if payment of the arbitration fees would ultimately become my responsibility. The way I understand the agreement, I would only need to reimburse Discover for these fees up to what I would have had to pay an attorney, court fees, and collection costs if I brought the action in court. I could argue that no attorney's fees would have been involved in small claims, only a court filing fee. I'd appreciate any feedback. Thanks!
  8. I understand your point. According to the arbitration agreement, Midland cannot force me to arbitrate a matter that can be handled in small claims court. If I initiate arbitration, I may be opening a door for them that I'd rather keep closed. (Although many on this board believe Midland would avoid arbitration.) Midland can't initiate arbitration. If they file suit against me, I can file a Motion to Compel Arbitration because I've already demanded arbitration. I think I have my bases covered for now. Thanks for all the help and advise everyone!
  9. Because I've already DV'd them, and I've sent them a demand for arbitration, should I take any further action right now? They sent me a letter in response to my demand that ignored the subject of arbitration entirely. I received a standard form letter from them that claims they didn't understand the nature of my dispute. They also enclosed copies of a few statements. I'm not sure if it's best for me to respond to their most recent communication with another DV that reitterates my demand for arbitration.
  10. They claim I owe slightly less than $9,000. I'll contact JAMS to find out if they would allow me to pay less than $250.00 to initiate arbitration, being that the creditor pays. One doubt I have concerning who pays comes from the way the agreement is worded. It indicates the crditor will cover the costs if they believe the card holder is acting in good faith, or to the extent required by law. I don't know what the law is. As far as "good faith" goes, could Midland simply claim I was acting in bad faith and refuse to pay? Here's how the agreement reads: "Upon your request, we will normally pay all the fees the administrator or arbitrator charges, if we believe you are acting in good faith. We will always pay these arbitration costs, as well as you legal fees and costs, to the extent required under applicable law or in order for this Provision to be enforced." In the back of my mind, I'm wondering if Midland would actually agree to arbitration because of the amount of money involved. Maybe the costs involved in arbitration make it not worth their while.
  11. Midland responded to my demand for arbitration by sending a generic letter to me. They did not address the subject of arbitration at all. They just enclosed copies of some statements and said they were unable to determine the nature of my dispute. Because I did send them a certified, written demand for arbitration, I'm not sure what my next move should be. I have a return receipt showing they received my letter. The fact that they responded is also an acknowledgment that I did contact them. Unfortunately, they ignored the huge elephant in the room. Maybe this is a tactical move on their part. Do I need to take any further action at this point such as writing them back and saying, "Hey, idiots! Didn't you bother to read my letter?" Part of me thinks I should just put all the documents in my file and see what their next move is. I know Midland is located in San Diego, and the cover letter I received from them reflects their address in San Diego. However, the return address on the envelope is a PO Box in another state. After Googling this address, I discovered it belongs to a collection agency under a different name that's closer to me. It's odd that a different collection agency would be mailing me correspondence that appears to be from Midland.
  12. That's also how I understood the language. The creditor won't make you arbitrate a case that can be handled in small claims. At the same time, the card holder doesn't lose their right to arbitrate if they chose to do so. The difficult part in all of this is knowing which card holder agreement you fall under. These agreements do change. When they do, the new version usually supersedes previous versions. Perhaps an arbitration clause cannot be changed because it's a material part of the agreement.
  13. It appears I'm in good shape right now. My thanks to everyone for their help with this. I never even considered using the arbitration provision to my benefit. Does anyone want to guess how long it will take Midland to respond to my letter? What do you think they'll say? I will keep you up-to-date.
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