I am in the same situation with Capitol 1. I owe roughly $3k. I am in the "pre-legal" stage as well. I have had the card for about 3 yrs but not found anything in my cardhilder agreement about arbitration or JAMS. I have offerred $800 cash to settle. They refuse. Their best offer is the principle balance $2,996. I will be 180 days delinquent on March 13th, 2013. At that point they are saying they might sue. They have offerred the $2,996 repeatedly now for about 3 months with now end in dropping the offer. If they sue, they could attach to my underwater home. Any help or tips?? I need to get from under this.