Settlement negotiations prior to arbitration

[joshman]

Ok...surprise, surprise (being sarcastic), Cap1 wants to settle with me prior to me filing my Demand for Arbitration with JAMS. Last month I served Cap1 and their attorneys with a JAMS arb demand, but I have yet to file it with JAMS. Cap1 called the JAMS office to verify that I have not yet filed the paperwork.

Anyway, after reading over several threads, I'm a bit unclear as to the right way to handle my negotiation. Most of the settlement offers floating around this forum seem to stem from pending/stayed court cases. Keep in mind that I was sued by Cap1 (twice) and both suits were withdrawn after I elected arbitration. There is nothing pending or stayed in my situation.

I should also point out that I have 2 well-documented FDCPA violations against Cap1's attorney.

So, what I'd really like to do is ask for a payment in addition to a "mutual dismissal of claims with prejudice". However, I've read that Cap1 doesn't pay money to settle. Is this true or not? Also, (and sorry if I missed it) but has anyone actually been successful in getting a mutual dismissal of claims with prejudice from Cap1?

Any other suggestions or negotiating tactics?

[jkg3]

Best advice I could give you is not to be greedy.

Cap1 are ruthless. You will not get money from them unless you go to war.

If you can get them to settle for nothing, that is a victory. Get it in writing, make sure the debt is wiped out and will never be sold or assigned to anyone else.

Be cautious when it comes to claiming to initiate arbitration, and then not doing it. If Cap1 goes back to court with this, you better have initiated arbitration.

[joshman]

Be cautious when it comes to claiming to initiate arbitration, and then not doing it. If Cap1 goes back to court with this, you better have initiated arbitration.

Yeah, this thought entered my mind. I think I'm going to file with JAMS anyway.

Getting money out of Cap1 isn't my priority. My thinking was to leave some room for a Cap1 counter-offer. Do you think it's a good idea to just ask for a mutual dismissal from the start?

I'm assuming Cap1 is going to counter with an offer of me paying them.

[jkg3]

Yeah, this thought entered my mind. I think I'm going to file with JAMS anyway.

Getting money out of Cap1 isn't my priority. My thinking was to leave some room for a Cap1 counter-offer. Do you think it's a good idea to just ask for a mutual dismissal from the start?

I'm assuming Cap1 is going to counter with an offer of me paying them.

I would initiate arbitration. Make sure to follow the rules, and the stipulations in the cardholder agreement. For example, Cap1 may have a specific Cap1 address to which you need to send the arbitration paperwork.

Send a letter to Cap1's attorney, along with a copy of the arbitration paperwork. Tell them you initiated arbitration, and that you would be open to discussing a settlement that would avoid the trouble and expense of arbitration.

Don't say another word unless they respond. If they don't respond, arbitrate and go after every dollar you can from them.

If they respond, they will offer that you pay a percentage of the debt in exchange for dropping arbitration. That is when you come back with your demand that the debt be forgiven, no credit bureau reporting and no 1099.

They will not accept all that, but you should be able to get them to forgive the debt and not report to the bureaus. Take the 1099, it's no big deal.

The key to a successful settlement is starting from a ridiculous amount, and then coming down to an amount that makes you the total winner.

If you owe them $3,000, arbitrate against them with a claim for $10,000. In the end, you can be happy to have made the $3,000 turn into $0. Expecting the $0 to turn into a positive number, against Cap1, isn't realistic.

Edited April 21, 2010 by jkg3

[joshman]

So....send the required info to JAMS and then send them a letter saying that I'm open to negotiation. Wait for the response and then let them know what my terms are (as you've enumerated).

Great advice as usual. Thanks

[chuckygee]

So....send the required info to JAMS and then send them a letter saying that I'm open to negotiation. Wait for the response and then let them know what my terms are (as you've enumerated).

Great advice as usual. Thanks

DO NOT SEND THEM A LETTER!!!!!!!

That defeats the purpose. You want to have the upper hand. Don't worry, they will contact you to resolve the matter. If you contact them first, you lose. It shows them that you are bluffing.

Go to the Kenny Roger's school of gambling.

[joshman]

DO NOT SEND THEM A LETTER!!!!!!!

That defeats the purpose. You want to have the upper hand. Don't worry, they will contact you to resolve the matter. If you contact them first, you lose. It shows them that you are bluffing.

Did I miss something here?

I've already received a letter from Cap1 saying they want to negotiate. Are you saying to ignore the letter I just got, file with JAMS (I already served JAMS Demand for Arbitration with Cap1 and attorney) and then wait for another letter?

[chuckygee]

Did I miss something here?

I've already received a letter from Cap1 saying they want to negotiate. Are you saying to ignore the letter I just got, file with JAMS (I already served JAMS Demand for Arbitration with Cap1 and attorney) and then wait for another letter?

So sorry. Jumped into thread without rereading the beginning. Ignore the previous post. You are getting great advise and your on the right track.

[SeaStriper]

I am in the same boat as u josh. I told Cap1 lit spec to go pi$$ up a rope. Yes they r tough, you you will win at the end with fdcpa violations to off set there claim. In the end we win because they pay arb and there lawyers fees